JAKARTA (Yosefardi) – PT Atlas Resources Tbk (ARII) said its unit, PT Hanson Energy, had in December 22, 2014 signed coal sales and purchase contract agreement with state utility PT Perusahaan Listrik Negara (PLN).
Hanson Energy, under the agreement, will supply 429,000 tons of low rank coal to PLN’s steam power plant, unit 2, at Pelabuhan Ratu’s port, West Java. The contract has tenor of 20 years.
ARII targets to produce 2.5 million tons of coal this year and to book revenue of US$270 million. It allocates capital expenditure (capex) of US$34 million for this year.
ARII also focuses on cost efficiency and domestic supply. The cost its is also the main concern as fuel cost covers 30% of total cost. With the current declining trend of oil price, then fuel cost would also decline by 15-20%, could compensate the lower coal prices.