Bukit Asam Targets 37 Million Tons Of Coal Production In 2022

PALEMBANG - State-owned coal mining company PT Bukit Asam is targeting an increase in production volume to 37 million tons by 2022, an increase of 23.3 percent compared to the 2021 target.

President Director of PT Bukit Asam (PTBA) Suryo Eko Hadianto said the target was related to the estimated increase in industrial demand and potential new markets in a number of countries.

Suryo said the company is optimistic that the target can be achieved because it reflects on the achievement of PTBA's coal production until the third quarter of 2021 which reached 25.7 percent.

"We believe that by the end of this year we can reach a total production of 30 million tons," he said, quoted by Antara, Sunday, November 21.

Of this amount, around 47 percent is channeled for domestic needs, while for exports it reaches 53 percent. So far, China and India are still the main markets for PTBA's coal.

But in the future, exports will lead to new markets, namely the Indo-China region such as Cambodia and Myanmar which have the potential to still use coal as their energy fuel.

Meanwhile, for domestic needs, said Suryo, his party will concentrate on downstream coal products as a follow-up to PTBA's transformation into an energy company.

In addition to still supplying PLN's needs, it will also provide a coal supply for coal gasification of 6 million tons.

For this program, Suryo said, the collaboration between PTBA, Pertamina, and Air Products and Chemicals Inc (United States), has reached the finalization stage.

If you look at current developments, the coal gasification process into dimethyl ether (DME) is planned to enter the detailed feasibility study stage in the third quarter of 2022 and is projected to start running in 2024-2025. This material is prepared as a substitute for LPG.

In addition, the construction of PLTU Sumsel 8 with a capacity of 2 X660 megawatts is targeted for completion in March 2022 and is expected to be operational by the end of 2022. The presence of this PLTU will supply electricity to North Sumatra.

However, according to Suryo, next year, the distribution of production will be more directed towards the export market than domestic needs. This is due to an increase in demand and the impact of the trade war between the United States and China.

With this estimated market condition, Suryo said, his party targets a production volume of up to 37 million tons by the end of 2022. In order for this to be realized, there are already two exploration points that will be prepared, namely in Suban Jeriji and Central Bangko.

In terms of infrastructure, PTBA has also completed the addition of a trainload station (TLS) to accommodate coal production.

"This facility will be completed by the end of this year," said Suryo.

In addition, PTBA is also waiting for PT KAI's commitment to increase the train transport capacity so that the mined production can be transported.