JAKARTA. Publicly-listed coal producer PT Bayan Resources Tbk (BYAN) is aiming to produce up to 20 million tons of coal this year, a 29 percent increase from last year’s production volume of 15.5 million tons.“We are projecting coal production at 18 million to 20 million this year. The sales volume will be more or less the same as our production,” Bayan director Jenny Quantero said after an extraordinary meeting of shareholders on Monday.The coal company’s average selling price stood at US$95 per ton in 2011 and the firm has projected a similar price for this year.Jenny said that most of Bayan’s coal was sold based on contracts. She declined to reveal the number of contracts her company had secured this year.Jenny said that the increase in production would be supported by Bayan’s existing mining areas in South and East Kalimantan.“Our new mining areas will contribute, yet remain small in amount,” Jenny said.Last year, Bayan acquired nine mining concessions in East Kalimantan, which were previously held by PT Apira Utama, PT Bara Sejati, PT Cahaya Alam, PT Tiwa Abadi, PT Dermaga Energi, PT Orkida Makmur, PT Silau Kencana, PT Sumber Api and PT Tanur Jaya.Bayan president director Eddie Chin Wai Fong said that his company was still in the process of completing the acquisition of three of the nine concessions.“We hope the three concessions can start contributing to the company in 2012,” Eddie said.According to Eddie, the company estimates that it has coal resources of up to 4 billion tons, with mineable reserves reaching 980 million tons.Bayan is allocating up to $200 million in capital expenditures to develop its mining area and build infrastructure for its new mining concessions.According to Eddie, Bayan needs $700 million to $900 million this year to support its capital expenditures, refinancing existing debts and further expansion.“We will refinance our debts amounting to around $410 million,” Eddie said.In a meeting on Monday, Bayan obtained approval from shareholders to pledge assets to obtain bank loans that will support spending.“We obtained the approval, but haven’t decided which assets are to be pledged. We are in talks with several banks,” Eddie said, declining to offer further details.He added that Bayan would try to maintain a debt-to-equity ratio of 2:1. Shares in Bayan closed at Rp 17,950 on Monday, increasing by only 0.28 percent from last Friday’s trading at Rp 17,900. The company’s market capitalization stood at Rp 59 trillion. (Raras Cahyafitri/The Jakarta Post)
Bayan aims for 20m tons of coal production
JAKARTA. Publicly-listed coal producer PT Bayan Resources Tbk (BYAN) is aiming to produce up to 20 million tons of coal this year, a 29 percent increase from last year’s production volume of 15.5 million tons.“We are projecting coal production at 18 million to 20 million this year. The sales volume will be more or less the same as our production,” Bayan director Jenny Quantero said after an extraordinary meeting of shareholders on Monday.The coal company’s average selling price stood at US$95 per ton in 2011 and the firm has projected a similar price for this year.Jenny said that most of Bayan’s coal was sold based on contracts. She declined to reveal the number of contracts her company had secured this year.Jenny said that the increase in production would be supported by Bayan’s existing mining areas in South and East Kalimantan.“Our new mining areas will contribute, yet remain small in amount,” Jenny said.Last year, Bayan acquired nine mining concessions in East Kalimantan, which were previously held by PT Apira Utama, PT Bara Sejati, PT Cahaya Alam, PT Tiwa Abadi, PT Dermaga Energi, PT Orkida Makmur, PT Silau Kencana, PT Sumber Api and PT Tanur Jaya.Bayan president director Eddie Chin Wai Fong said that his company was still in the process of completing the acquisition of three of the nine concessions.“We hope the three concessions can start contributing to the company in 2012,” Eddie said.According to Eddie, the company estimates that it has coal resources of up to 4 billion tons, with mineable reserves reaching 980 million tons.Bayan is allocating up to $200 million in capital expenditures to develop its mining area and build infrastructure for its new mining concessions.According to Eddie, Bayan needs $700 million to $900 million this year to support its capital expenditures, refinancing existing debts and further expansion.“We will refinance our debts amounting to around $410 million,” Eddie said.In a meeting on Monday, Bayan obtained approval from shareholders to pledge assets to obtain bank loans that will support spending.“We obtained the approval, but haven’t decided which assets are to be pledged. We are in talks with several banks,” Eddie said, declining to offer further details.He added that Bayan would try to maintain a debt-to-equity ratio of 2:1. Shares in Bayan closed at Rp 17,950 on Monday, increasing by only 0.28 percent from last Friday’s trading at Rp 17,900. The company’s market capitalization stood at Rp 59 trillion. (Raras Cahyafitri/The Jakarta Post)