BUSINESS STRATEGY AND DEVELOPMENT PLAN
achieve this goal, the Company and its subsidiaries determine the primary business strategy which includes:
Increase in coal production
The Company plans to increase the coal production capacity from 2.0 million tons in 2010 to become 40 million tons in
the period of eight years ahead. The biggest contribution of this increase in production capacity is planned to be
obtained from Kusan and Girimulya blocks in the coal mining area of BIB.
Improvement in mining cost efficiency
The company has a competitive advantage in terms of mining operational
costs by
the open-cut
mining method,
relatively low stripping ratio and the proximity of the mining location to port facilities. The Company is
committed to continue striving to improve the efficiency of coal production costs in the long run by selectively
choosing mining contractor services, coal transportation and shipping contractors in line with an increase in coal
production capacity of the Company.
Development and improvement of customer relations
The Company and its subsidiaries are committed to continue to foster good relations with current existing customers.
In the
meantime, considering
that currently
most of coal sales of the Company and its subsidiaries are
performed in spot sales, the Company and its subsidiaries also plan to enhance the good relationships with customers
through the realization of long-term contracts.
Expansion of Market Distribution Network
In addition to fostering good relationships with existing customers, the Company plans to expand the marketing
network, for
both domestic
and export
needs. The
export sales are planned to focus on Asia such as China and India.
Increase in the amount of coal resources and reserves
The Company plans to continue its exploration activity and performing continued drilling program to obtain additional
coal reserves. The Company will also perform other strategic coal mines acquisition or and optimize the
mining plan of the mining locations which are already owned.
Improving the quality of Human Resources
The Company realizes that the success of the Company in achieving its objectives is inseparable from the role of
human resources owned by the Company. Therefore, the Company constantly strives to develop the human resources
sustainably by providing training and education to all employees.
Updating Technology
The Company will update the technologies required to support the
implementation of mining
and production
operations.
Development of good relations with local communities
The Company is committed to maintain and develop a good relationship with communities around the mine site. The
Companys commitment
is realizable
through the
implementation of Corporate Social Responsibility.