PT Delta Dunia Makmur Tbk (DOID) reported the realization of coal production throughout 2020. Through its subsidiary, PT Bukit Makmur Mandiri Utama (BUMA), DOID recorded a production volume of 45.3 million tons of coal over the past year.
Just so you know, the realization of this coal production fell 9% compared to 2019 ago.
In detail, last December,DOIDrecorded production of 4.1 million tons, down slightly from the previous month’s realization of 4.2 million tons.
Based on the DOID monthly report, the highest production volume occurred in March 2020. At that time, the company’s production reached 4.5 million tons.
On the other hand,DOIDalso recorded a volume ofoverburden(OB)removalthroughout 2020 of 281.8 million bank cubic meters (bcm).Again, this realization fell 26% compared to 2019.
In detail, the volume of OB in December 2020 was 17.0 million bcm, a decrease of 7.6% from the realization in November 2020, which was 18.4 million bcm.
The highest volume of stripping (OB) was also recorded in March 2020, reaching 32.0 million bcm.
The company also explained that this decline was caused by the overall and prolonged weakening of the coal market.This condition encourages customers to lower their production levels towards the remainder of the year.
Head of Investor Relations ofDelta Dunia Makmur, Regina Korompis, added that the company is still completing operational performance guidelines this year.However, he is optimistic about the current prospect of coal prices.
“Officially,guidancehas not yet been issued.But we are more optimistic than last year.Hopefully the coal price can be maintained, “explained Regina to Kontan.co.id, Wednesday (21/1)
As of December 2020, DOID recorded astripping ratioof 4.1 times, down from the realization in November 2020 of 4.4 times.
DOID also announced about contract renewal updates with its customers.In January 2021, DOID and PT Indonesia Pratama (IPR), a subsidiary of PT Bayan Resources Tbk (BYAN), signed an agreement to extend the existing contract (which was signed in 2018) until December 2031.
This contract also includes significant expansions that provide an additional workload of overburden removal (OB) volume of more than 650 million bcm, more than 210 million tonnes of coal to be extracted, and more than 75 million tonnes of coal to be transported.The estimated value of this contract is around Rp. 26 trillion or the equivalent of approximately US $ 1.9 billion.