Golden Energy and Resources eyes 12m tonnes of annual output

It’s after revenues from coal’s high demand and price.

Beginning 2017, mining company Golden Energy and Resources Limited (GEAR) will be targeting 12 million tonnes of output every year after the government of Indonesia flashed a go signal for the company’s coal production hike plan.

GEAR revealed that there is a high demand for coal from its 24,100-hectare concession area PT Borneo Indobara (BIB) as evidenced by its own coal brand, BIB4200.

“Throughout the years, BIB coal has been experiencing strong and continuous demand from both domestic markets in Indonesia as well as international markets, inter alia, China, India and South-East Asia,” GEAR said.

To hit its goal, the group established a wholly-owned transport infrastructure to meet greater costs and save time in coal transhipment. This, along with other assets, allows GEAR greater control over its coal shipment schedule, increasing transport efficiency and minimising risk of delays, the company shared.

The BIB concession is GEAR’s largest coal reserve with an estimated 1.78 billion tonnes of coal resource.

Coal prices surged internationally since June 2016 with China’s imports jumping to the highest since December 2014. Chances of China boosting imports and weather conditions caused by La Nina could push prices even higher, the group added.