Indonesian coal producer Adaro Energy Indonesia surpassed its 2023 production and sales targets on the back of continued high domestic and international demand.
Adaro produced 65.88mn t of coal in 2023, 5pc higher than 62.88mn t a year earlier. The company’s main Tabalong mine saw a 1pc fall in output, which was offset by higher production from the Balangan and Mustika Indah Permai concessions.
Sales rose by 7pc to 65.71mn t from the previous year’s 61.34mn t, fuelled by increased sales of high-calorific value thermal coal products that rose by 26pc to 16.71mn t from 2022’s 13.24mn t. Thermal coal sales reached 61.25mn t from the previous year’s 58.15mn t, while metallurgical coal sales also increased to 4.46mn t from 3.2mn t.
China remained the largest export market for Adaro at 21pc of total sales, followed by India at 12pc. Domestic sales remained firm, making up 25pc of the total, resulting in Adaro fulfilling its domestic market obligation quota for 2023.
Revenues fell in 2023 as coal prices fell by 26pc to $96.14/t from 2022’s $129.38/t. The coal cost of sales also rose by 15pc because of higher royalty rates for the Adaro Indonesia concession, a higher strip ratio and increased fuel consumption because of the higher volume moved.
Adaro is targeting a modest increase in coal sales for 2024 at 65mn-67mn t, comprising 61mn-62mn t of thermal coal and 4.9mn-5.4m mn t of metallurgical coal.
By Antonio delos Reyes
