Indo Tambangraya Megah (ITMG) Operates One New Mine in 2024

Indo Tambangraya Megah (ITMG) Kian Diuntungkan Berkat Harga Jual

PT Indo Tambangraya Megah Tbk. (ITMG) plans to operate one stone mine in 2024, namely PT Graha Panca Karsa, thereby increasing its production portfolio.

Mulianto, President Director of ITMG, said that in 2024 the company will operate a new mine, namely Graha Panca Karsa (GPK). It is hoped that GPK coal production will reach 1 million tons next year.

“GPK production is expected to reach 1 million tonnes in 2024, then grow gradually to 2 million tonnes in 2025, and 3 million tonnes in 2026,” he explained in Pubex Live 2023, Thursday (30/11/2023).

GPK has calorie coal of 3,600-3,800 Kcal/kg with an ash level of 8%-11%, sulfur 0.1%-0.2%, and total moisture of 36%-38%. According to Muliato, low sulfur is an advantage of GPK coal products so that it can be mixed with ITMG’s coal portfolio in other mines.

GPK has a concession of 5,060 hectares (ha) in East Kalimantan. The location is 14 km from Bunyut Harbor making transportation easier.

“With more diversified products, ITM will be able to meet the various qualities required by customers in both the domestic and export markets,” he added.

Meanwhile, ITMG reported that it had absorbed capital expenditure of USD 26.7 million or the equivalent of IDR 413.5 billion (Jisdor exchange rate IDR 15,487 per US dollar) until 9 months 2023.

In its presentation material, ITMG said that it had absorbed capital expenditure (capex) of USD 26.7 million. Most of this capital expenditure was absorbed by ITMG’s coal business, totaling USD 15 million.

In detail, the Trubaindo mine absorbed capital expenditure of USD 5.6 million. Then, capex of USD 4.7 million was absorbed by the Bharinto mine, USD 4 million was absorbed by the Indominco mine, and the remaining USD 0.7 million was absorbed by the Jorong mine.

Then, other ITMG businesses such as TRUST absorbed capital expenditure of USD 7.1 million, greenfield projects absorbed capital expenditure of 1 million, renewable energy projects amounted to USD 2.6 million, and others amounted to USD 0.9 million.

ITMG management said that in the nine months of 2023, ITMG’s production volume will reach 13.4 million tons, an increase of 9% compared to the previous year. Management said that this achievement exceeded the target, supported by friendly weather conditions and effective operational management.

Management said that amidst global coal benchmark prices which tend to decline, ITMG posted net income of USD 1.8 billion in the nine months of 2023, with a gross profit of USD 610 million, and a gross profit margin of 33%.

The average total cost was recorded at USD 83 per ton, or 7% lower than the same period last year. Meanwhile, net profit in the nine months of 2023 was recorded at USD 405 million.

Management continued that in the nine months of 2023, ITMG also recorded a sales volume of 15.3 million tons, which was marketed to China at 5.4 million tons, Indonesia at 3.6 million tons, Japan at 1.9 million tons, the Philippines at 1.9 million tons, 2 million tons, Thailand 800,000 tons, and other countries in Asia Pacific and Europe.

As for 2023, ITMG is targeting a coal production volume of 16.9 million tons, with a sales volume of 21.1 million tons. Of the sales volume target, 77% of the selling price has been determined, while the remaining 23% refers to the coal price index.

Image source >>> ITMG

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