Take Advantage of Rising Coal Prices, ITMG Mines Deeper

PT Indo Tambangraya Megah Tbk. (ITMG) plans to stimulate deeper mining activities to boost production. ITMG Director of Corporate Communications & Investor Relations Yulius Gozali said this policy was taken by the company to increase production figures amid high coal commodity prices. Based on the ICE Newcastle exchange, the price of coal is at US$247.50 per metric ton for the December 2021 contract. This figure is an increase of US$160.55 per metric ton or 184.65 percent compared to April 2021.

The current increase in coal prices heightens the possibility to mine deeper or increase the stripping ratio, so it is hoped that production will be more optimal,” he told Bisnis , Thursday (14/10/2021). He explained that exploration activities are activities carried out by corporations every month. This effort aims to confirm the existing coal reserves in the concession area. This is a reference for future mine utilization planning.

The exploration carried out aims to confirm the existing coal reserves in our mining concession area. Currently, we have confirmed more than 50 percent of our coal reserves, he explained. Based on information disclosure, exploration is carried out by ITMG through its subsidiary PT Indo Tambangraya Megah namely PT Trubaindo Coal Mining and Indominco Mandiri conducting open hole and coring drilling.

PT Trubaindo Coal Mining runs drilling operations in the North Block and South Block areas in Muara Lawa District, West Kutai Regency, East Kalimantan. Meanwhile, PT Indominco Mandiri carried out drilling in the West Block and East Block in four locations. The three are Sangatta District, East Kutai District, Marangkayu District, Kutai Kartanegara District and North and South Bontang Districts, Bontang District, East Kalimantan Province