PT Adaro Minerals Indonesia Tbk (ADMR):
- Production Boom: Achieved a significant increase in metallurgical coal production in 2023, with volume reaching 5.11 million tonnes (Mt), a 52% increase over 2022. This strong performance exceeded the company’s sales target of 3.8 Mt to 4.3 Mt, with 4.46 Mt of coal sold in 2023, representing a 39% increase compared to the previous year.
- Restart and Growth: The restart of operations at PT Lahai Coal (LC) in the second half of 2023 contributed positively, with 0.20 Mt of coal sold from LC during the period.
- Improved Efficiency: Overburden removal, the process of removing non-coal material to access coal seams, saw a substantial increase. In 2023, the volume reached 18.70 million bank cubic meters (Mbcm), a significant 125% rise compared to 2022. This led to a strip ratio of 3.66x, indicating improved efficiency, as it represents a 48% increase from the previous year. Favorable weather conditions and strong contractor performance are attributed to this achievement.
- Export Focus: The majority of ADMR’s metallurgical coal was sold to the export market in 2023, with Japan emerging as the largest sales destination.
Kestrel Coal Mine (Kestrel):
- Production Dip: Kestrel recorded 5.57 Mt of saleable coal production in FY23, which represents a 2% decrease compared to FY22. This decline can be attributed to high clay dilution content in the coal processed at the plant, leading to lower yields and reduced throughput capacity.
- Sales Decline: Kestrel’s sales volume in FY23 also experienced a 3% decrease from FY22, reaching 5.56 Mt.
- Market Reach: Despite the production and sales dip, Kestrel maintained its presence in major Asian markets. Japan remained the largest sales destination, followed by India and Korea.
- Ownership Structure: It’s important to note that Adaro Capital Limited (48%), a subsidiary of PT Adaro Energy Indonesia Tbk (AEI), and EMR Capital Ltd (52%) together hold an 80% ownership interest in Kestrel.
Overall:
While ADMR experienced strong growth in 2023, Kestrel faced challenges that impacted its production and sales volume. However, it maintained its presence in key markets. Going forward, it will be interesting to see how these companies address the challenges faced in 2023 and their strategies for future growth.
Source: TheCoalTrader, AI generated
