As coal prices rise, Mitrabara Adiperdana (MBAP) remains focused on cost efficiency

As coal prices rise, Mitrabara Adiperdana (MBAP) remains focused on cost efficiency
The coal mining company PT Mitrabara Adiperdana Tbk (MBAP) will continue to run its business efficiently amid the recent upward trend in coal prices.

MBAP management itself targets coal production of 3.5 million tons and coal sales of 3.4 million tons this year.

Mitrabara Corporate Secretary Adiperdana Chandra Lautan said that his party does not have a specific strategy in relation to the optimization of coal production this year.Although currently the trend of coal prices is experiencing an increase, MBAP still views that the upward trend can still change at any time.

“To face the challenges that may arise during 2021, we will continue to implement cost efficiency programs,” he said, Thursday (21/1).

Apart from that, in the midst of soaring coal prices, MBAP will consider all the possibilities associated with increasing production targets.

Actually, MBAP’s production and sales target this year is lower than last year’s target.At that time, MBAP targeted coal production of 4 million tonnes and coal sales of 3.9 million tonnes.

Although the figures have not been officially announced, Chandra said, until the end of December 2020 MBAP had met its operational performance targets.He also said that MBAP’s coal sales last year were quite affected by the decline in commodity prices which touched the level of US $ 45 per ton.

To ensure that its products are absorbed by the market, MBAP will focus on selling coal to prospective buyers who have had a long working relationship.On the other hand, this company also continues to open up coal marketing potential to other new market segments.

“Our sales are not only limited to China, South Korea, India, Japan and other countries in the Asia Pacific region,” said Chandra.

To support business operations this year, MBAP has prepared a capital expenditure (capex) of around US $ 1.8 million-US $ 2 million.Similar to previous years, MBAP’s capex funding sources were focused on coming from internal companies.MBAP does not have any corporate action plans in the near future to seek funding sources.

MBAP does not only have a coal business segment.Through its subsidiaries, PT Engie Cipta Tenaga Surya and PT Mitra Malinau Energi, MBAP has a solar panel and biomass power plant business.However, Chandra stated that the two business activities were still in their early stages.