Prepare IDR 350 billion, PT RMK Energy Tbk Will Build 2 Hauling Road To Coal Mine

Illustration (Photo: Doc. Antara)

JAKARTA - PT RMK Energy Tbk (RMKE) announced that it will build two main hauling roads.

RMKE Finance Director Vincent Saputra said the construction of this road would facilitate the transportation of coal from the mines in Lahat and Muara Enim.

"One road leads to a potential mine in Lahat and another road to Muara Enim. A large coal potential can come out with the construction of this road", he said in Jakarta, Tuesday, November 22.

He detailed that the first road built will stretch 32 kilometers (km) to Muara Enim and is projected to start operating in the first quarter of 2023.

Meanwhile, the second road will be built for 40 to 50 km to Lahat.

Vincent said, for the construction of these two roads, RMKE had prepared a Capex of IDR 350 billion, which was obtained from the previous year's profit.

"And in 2023 our Capex is IDR 350 billion. Until September 2022, our net profit has reached 290 billion, of which the target this year is IDR 370 billion", added Vincent.

The potential reserves of coal in the two areas reach 80 to 100 tons of RMKE's annual requirement of only 7 to 8 tons.

"Muara Enim itself has 5 to 6 mines with such reserves. What we need is 7-8 million tons a year. So the reserves are there and sufficient for the long term", Vincent continued.

The road construction is not without reason. The President Director of RMKE, Tony Saputra, said that currently the road used to transport coal is a road owned by the South Sumatra Provincial Government which the Governor has also given a limit on the size of transport trucks that may pass.

"Limited by the small size of the truck and the time limit from 6 pm to dawn, it must stop", added Tony.

Just so you know, this year RMKE targets coal transportation of 7.82 million tons and has reached 69.80 percent.

For the coal sales segment, management targets a volume of 2.26 million tons, of which 50 percent of the target comes from the in-house mine of PT Truba Bara Banyu Enim.

As of September 2022, coal sales volume has reached 1.62 million tons or has reached 71.78 percent of this year's target.

Not only that, this year the company targets an operating income of IDR 2.5 trillion and an operating profit of IDR 375.40 billion.

"Until September 2022, 76.92 percent and 78.95 percent have been achieved", he concluded.