Jakarta-The opening of the new production block reinforcing sources of revenue PT Resource Alam Indonesia Tbk (KKGI). Net income was coal mining issuers throughout the semester one was Rp 214.40 billion, soared 208.1% over the first half of 2010.

The increase was in line with net sales of which rose two-fold to
The coal miner panning for net sales of Rp 981.09 billion. Production and sales volumes rose KKGI also doubled, respectively to 2.06 million tons and 2.04 million tons.

Coal mining concession owned by only one true KKGI. It stretches from Samarinda permission to Kutai, East Kalimantan (Kaltim). Of the seven blocks that are in the concession, just four blocks that have been produced commercially.

Concession area of ​​24,224,776.7 hectares (ha), the estimated capable of producing up to 73 million tons of coal per year. Coal produced in the land KKGI including medium grade coal.

Through its subsidiary, called PT Insani Bara Perkasa, KKGI diligent open sub-blocks and new blocks. Last year, KKGI open mining units in Tegal Anyar and Cape Barokah. The second area is a sub-block of block production of Loa Janan.

Issuers that following the opening of sub-blocks Loa Janan, the Farm Safe and Bayur new block in the first quarter of this year. KKGI opened last April, is Handil Bakti, which is also sub-block of Loa Janan.

KKGI, last July, started exploration activities in Tanjung Barokah and Peasants' Safe at a cost of U.S. $ 1.15 million. Coal mining concession owned KKGI stretches from Samarinda to Kutai, East Kalimantan. The concession consists of seven blocks of production, where only four of whom have already started commercial production.

Concession area of ​​24,224,776.7 hectares (ha) of coal reserves contain 73 million tonnes per year with a calorific value of the medium, amounting to 5300 calories per gram (adb).

"Block the recently opened its contribution is still small," said Eric tirtana, Investor Relations KKGI, Tuesday (2 / 8).

Block Loa Janan KKGI still a mainstay in the pursuit of production. Blocks that generate up to 90% of total sales KKGI.

This year, KKGI have plans to add concession. "The concessions that we pocket is sufficient to achieve growth in the coming years," said Eric. KKIG target only the opening of a new block before the end of 2011.

That is why, KKGI only budgeted capital expenditure or capital expenditure of Rp 42 billion for internal needs, such as the purchase of heavy equipment. "Until now there is no need for external financing," said Eric.

Export Market

Although the performance exceeds the expectations of semester one, KKGI has not revised its year-end target, the production volume of 3.55 million tons and sales volume of 3.5 million tonnes. This means, the company expects production volumes and sales rose about half of the realization of years ago.

Target net income this year KKGI set high enough, Rp 413 billion. Target is arguably aggressive, considering last year's net income was only Rp 166.03 billion.

The cause of rising profits KKGI not only the production volume growth, but also increase the selling price or the average selling price (ASP) of coal. ASP in the quarter of U.S. $ 50.3 per tonne, while in the second quarter rose to U.S. $ 58.5 per ton. "The increase in prices triggered an increase in demand," said Eric.

He predicts the ASP for the third quarter rose to around U.S. $ 61-US $ 63 per ton. This is the price that has been contracted by the company.

As many as 90% of production KKGI directed to foreign markets. Country's largest buyer for KKGI are China and India. In both countries, the medium grade coal used as fuel for steam.

After working on coal, KKGI intend to produce methane gas through a subsidiary called PT Resource Alam Energy. Now KKGI methane gas production is still in development stage.