FFB Coal Reserves Run Out In 2027

Coal (photo: dock. intermediate)

JAKARTA - PT TBS Energi Utama Tbk (TOBA) reported that coal reserves from the mining business permit (WIUP) area will expire gradually in 2025, 2026 and 2027.

It is known that TBS has three village concessions managed by its subsidiaries, namely PT Adimitra Baratama Nusantara (ABN), PT Trisensa Mineral Utama (TMU) and PT Indomining.

"For ABN in 2025, we have 3. For Trisensa, it's approximately 2026-2027," said TOBA Director Juli Oktarina to the media crew in Jakarta, Thursday, November 14.

Juli said that although based on the reserve mine plan it had been declared exhausted, the mining contract permit from several TOBA subsidiaries was actually still relatively long.

"It's not that it's not extended but it's gone. But in terms of permission, there is still a permit, but the coal resources don't exist. Currently, based on the existing mine plan, the coal resources are 0," explained Juli.

He further said that until now there is no plan for the company to look for other mining concessions for the coal mining business. This is in line with the commitment to sustainability of the Towards a Better Society 2030 and the Company's strategy to achieve the carbon neutrality target by 2030.

Juli also admitted that the exhausted coal reserves would affect the company's revenue, which is mostly still donated from the coal business.

To overcome the decline in revenue, July also said that TOBA will expand into the new renewable energy business and waste treatment. Moreover, the Toba GMS decided to divest two Steam Power Plants (PLTU) and obtain fresh funds of US$144.8 million.

"We have calculated how much EBITDA we have to replace, so with 144 million dollars. This can accelerate us to be able to find businesses that have income to replace the PLTU and coal business earlier," said Juli.