The following is a summary of historical production data in the last 3 three years:
Block Product ion in Tons
Period of 6 six m ont hs Year 2011
2010 2009
2008 BIB
1,167,117 1,118,046
1,182,669 1,252,305
KIM 615,367
638,206 353,834
- TKS
53,383 8,569
- -
TOTAL 1,835,867
1,764,821 1,536,503
1,252,305
Note: KIM was acquired by the Company on May 2009.
Through the mining supervisory cooperation, the Company obtained additional coal production as much as 265 thousand
tons of coal in 2010 and 543 thousand tons of coal during the period of 6 six months ended June 30, 2011 from mining area
of TBA, a third party. Company has a long-term Sales and Purchase Agreement of coal and Mining Supervisory Cooperation
Agreement between the Company and ASC, to conduct off-take of coal and mining supervisory in the area of TBA. ASC is a third
party that has Sales and Purchase Agreement of coal with TBA. By
conducting mining
supervisory, the
total production
performance of the Company was 2.0 million tons in 2010 and 2.4 million tons in the period of 6 six months ended June
30, 2011. In the Companys financial statements, the coal produced from the mining area of TBA is recognized as coal
sales and purchase transactions.
Open cut mining methods, a relatively low stripping ratio and the proximity of the mine location with the port facilities,
have made operation costs in the Company’s mining concessions become competitive.
BIB, a subsidiary of the Company has a low stripping ratio, i.e. 1:4 to 1:5.
2. COAL SALES AND MARKETING
Currently, the Company sells coal to Indonesia domestic market as well as to the export markets to meet the needs of
customers which
mainly consist
of power
plants, paper
factories, cement industries and coal trading companies who purchase coal for resale. Export sales in 2010 were recorded
dominating by 64 of the total Companys sales. Exports are made to various customers, especially China, India, and
Thailand. 31 of the Companys coal sales were made under coal contract sales agreement, with the coal selling price was
negotiated and adjusted annually or in shorter term based on the quality and specification of the coal with reference to
the coal price prevailing in the market. Meanwhile, 69 of coal sales in 2010 were made in the spot market. The Company’s
sales do not depend on the sales to related parties. In the long range, the sales and offers will be directed into long-
term sales contract of coal. In line with the increase in production, the number of sales
has increased from 1.2 million tons in 2008, to 1.6 million tons in 2009, 1.5 million tons in 2010 and reached nearly 2
million tons in the six-month period ended June 30, 2011. Meanwhile, the sales value was fluctuating following the
selling price and the amount of coal sales. The coal sales volume data and historical sales value in the last 3 three
years is as follows:
Coal Sales Volume in Tons Sales Value in million Rupiah
2008 2009
2010 June 2011
2008 2009
2010 June 2011
BIB 1,247,110
1,214,951 837,237
1,291,834 447,387
518,920 280,248
510,858 KIM
- 353,834
614,342 629,780
385,617 187,345
309,601 336,244
TKS -
- -
34,702 -
- -
13,602
Total 1,247,110
1,568,785 1,451,579
1,956,316 833,004
706,265 589,850
860,432
Source: The Company Note:
the total figure is the sum from respective subsidiaries and does not constitute consolidated figures of the Companys
sales
The Company and its subsidiaries recorded a historical gross profit margin and net profit margin for 26.72 and 3.66 in
2010. These gross profit margin and net profit margin increased to become 32.63 and 13.24 in the six-month period
ended June 30, 2011. The Company also operates a coal trading business, where the
external coal spot purchases from various sources is made for resale. In future, this trading business is also intended for
the purpose of mixing coal quality in order to get coal quality that suits the special needs of the customers who come
