NEWS

Petrindo (CUAN) Diversifies to Coal Business

PT Petrindo Jaya Kreasi Tbk. (CUAN) welcomes the cancellation of the revocation of the Mining Business License (IUP) of its subsidiary. CUAN will also diversify its coal business by entering the metallurgical coal mining sector and gold minerals.

Michael, President Director of Petrindo Jaya Kreasi, said that following the revocation of 2,078 Mining Business Licenses (IUP) by the Government through the Ministry of Investment/Capital Market Coordinating Board (BKPM) in early 2022, the company welcomed the Government’s decision to cancel the revocation of several IUPs, including The IUP belongs to two of the company’s subsidiaries, namely PT Daya Bumindo Karunia (DBK) and PT Intam (INTAM).

After conducting reviews, hearings, submitting reports and fulfilling all required administrative requirements, BKPM canceled the revocation of the DBK and INTAM IUPs, so that the two company subsidiaries could resume all mining and production operational activities in their working areas.

“Currently, DBK and INTAM are completing the final administrative process required by the Ministry of Energy and Mineral Resources to cancel the IUP revocation,” he explained in an official statement, quoted on Wednesday (5/9/2023).

Seeing Indonesia as a country that has large metallurgical coal and gold resource potential, the company has adapted its business and tried to capture these business opportunities through its two subsidiaries, namely PT Daya Bumindo Karunia (DBK) and PT Intam (INTAM).

Even though it has been mapped as having potential metallurgical coal resources, in reality Indonesia still relies on imports to meet industrial needs for this type of coal.

Therefore, metallurgical coal mining by DBK which is located in Murung Raya Regency, Central Kalimantan is expected to be able to provide added value in the mining sector by playing a role in reducing import numbers and strengthening the independence of the national industry.

“We are optimistic that the expansion of this business scope will drive positive business growth for us. This is also in line with our business strategy which focuses on strengthening the Company’s competitive position not only in the energy sector, but also in the industrial sector, namely through metallurgical coal mining which capable of producing coke as the main raw material in the steel industry,” he explained.

In addition, CUAN’s new business line will also contribute to meeting domestic demand for metallurgical coal and support import substitution.

The location of the mining area owned by DBK with an area of ​​14,800 hectares is directly adjacent to the coal concession owned by another subsidiary of the Company, namely PT Bara International (BI), so that the two subsidiaries can utilize the same infrastructure and road access to optimize operational efficiency.

Based on information compiled by independent third parties in 2011 using JORC 2004 principles, DBK recorded coal resources (inferred, indicated, measured) of 226.1 million tons, with coal reserves (probable & proven) of 99. 5 million tons.

Michael added, the company will renew DBK’s reserves and resources, carry out further exploration activities, as well as coal mining in accordance with the Work Plan and Budget (RKAB) approved by the Government.

Furthermore, CUAN sees the potential for gold minerals as one of the important and high-value mining commodities. Therefore, the company entered this business through its subsidiary, INTAM, which has a gold mining concession area of ​​18,500 hectares in Sumbawa Regency, West Nusa Tenggara, adjacent to two other gold concessions in Sumbawa.

“Business diversification through gold mining is a form of company transformation in strengthening its portfolio for a more sustainable business. “Through INTAM, the company hopes to provide substantial performance improvements so that it can contribute to providing better value for Shareholders, the Indonesian economy and also the surrounding community,” continued Michael.

Image source >>> CUAN

Source >>> https://market.bisnis.com/read/20230906/192/1692006/pembatalan-iup-dicabut-petrindo-cuan-diversifikasi-bisnis-batu-bara