Asia Resource Minerals, formerly Bumi, exceeded its 2013 output target, however earnings tumbled due to the continued impact of weak thermal coal prices.
Full year production increased by 11.7% to 23.5 million t, however underlying EBITDA earnings fell to US$ 176 million in 2013, down from US$ 321 million in 2012.
Weak coal prices
CEO Nick von Schirnding commented: "I am pleased to report that we exceeded our production target for the year. In the continuing weak environment for thermal coal prices, we remain resolutely focused on cost reduction and asset optimisation."
The company finally reached a deal last week to split with co-founding family the Bakries, and being the process of rebuilding the company.
Cut costs
Asia Mineral Resources owns 85% of PT Berau, Indonesia’s fifth largest producer of thermal coal. The company now intends to cut exploration and mining costs to counter falling coal prices that caused its 2013 to decrease by almost half.
Schirnding added: “We now look forward to maximising the opportunity at PT Berau as we begin a new chapter in the company’s life.”
Edited from various sources by Katie Woodward