Jakarta,- PT Bumi Resources Tbk. (BUMI) has revealed that despite facing numerous challenges this year, the company was still able to achieve slightly higher profits compared to last year. Dileep Srivastava, BUMI's Independent Director and Corporate Secretary, highlighted that these challenges stemmed from various factors such as pricing, supply and demand dynamics.
"We have faced several challenges in this very dynamic sector, including issues related to pricing, availability, supply, shifts in demand, increased production both here and in India and China, regulatory challenges, Domestic Market Obligation (DMO) impacts, pricing subsidy effects, and uneven royalty structures across the sector and mineral subsidies," he stated during a virtual press conference on Thursday, August 15.
Dileep noted that the total production in the first half of this year reached 37.7 million metric tons (MT), which is an increase compared to the same period in 2013 when production was 35.4 million MT.
"This improvement is due to better contractor performance and lower rainfall at KPC," he added.
However, coal prices during the first half of this year decreased to USD 75.2 per ton compared to USD 93.2 per ton in 2023. Consequently, the unit cost dropped from USD 52.8 per ton to USD 47.0 per ton.
Dileep explained that lower oil prices, a lower stripping ratio, and higher productivity at KPC were the main drivers of this.
Sources : www.djakarta-miningclub.com Aug 21.24