Indonesia's Bumi Resources sets 2025 coal output guidance at 80 mnt

• Bumi produced 40 mnt of coal in H1CY'24
  
  
• Spot thermal coal prices likely to hold stable in CY'25
  
  

Mysteel Global: Indonesia's largest coal producer, PT Bumi Resources Tbk, has set its 2025 coal production target at 80 million tonnes (mnt), Indonesian media agency Bisnis reported, citing the company's director Maringan M. Ido Hotna Hutabarat.

This will align with the company's target for this year, the official said during a public presentation on Wednesday. He noted that the 2025 production guidance assumes 25 mnt from Bumi's Arutmin mine and 55 mnt from another subsidiary, Kaltim Prima Coal (KPC).

Bumi produced around 40 mnt of coal in the first half of 2024, up from 35.4 mnt in H1 2023, as Mysteel Global has reported. The output comprised 28.5 mnt from KPC and 9.3 mnt from Arutmin.

Encouraged by the strong performance in H1, the company raised its annual coal output guidance to 78-82 mnt for 2024, with the upper limit slightly above the previously stated 80 million tonnes, Mysteel Global noted. In 2023, Bumi mined 78 mnt of coal.

Hutabarat also predicted that spot thermal coal prices will hold stable in 2025, with high-calorific value (CV) coal (basis 6,200 kcal/kg NAR) likely to fetch $135-140/t, while mid-CV coal (basis 4,600 kcal/kg NAR) $70-75/t. "The market dynamics will likely mirror those of 2024, with no significant changes in coal supply or demand," he added.

However, Hutabarat emphasized the need to monitor coal imports by China, the world's largest coal consumer. "If China's imports decrease from 2024 levels, this could impact coal prices. However, we anticipate that China's import volumes will remain steady," he said.

He added that the CVs of coal produced by KPC and Arutmin are expected to decrease in 2025, with the average CV for coal from KPC dipping to around 4,600 kcal/kg NAR, and that from Arutmin declining to 4,000 kcal/kg NAR or so.

Bumi has already secured Work Plan and Budget (RKAB) approval from the Ministry of Energy and Mineral Resources for the 2024-2026 period for both KPC and Arutmin, as Mysteel Global reported.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.