Signing a Coal Sale and Purchase Agreement between PTSB and PTBA

Palembang, PT Semen Baturaja (Persero) Tbk and PT Bukit Asam (Persero) Tbk signed a long-term coal procurement contract for 3 years starting from June 2017 to May 2020 with total coal reaching 1.69 million tons.

The signing of Semen Baturaja is done directly by the President Director of PTSB, Rahmad Pribadi and Acting official Commercial Director of PTBA, Mr. Joko Pramono at Hotel Arista Palembang on Tuesday (20/06/2017).

The signing is done in order to ensure the availability of coal supply required by the Company while improving efficiency with cheaper coal prices.

Previously, Semen Baturaja used coal with 6,300 kcal / kg calories. In connection with the operation of Baturaja II Plant, Company has a new coal mill that can use lower-calorie coal, which can also be used to meet the needs of Baturaja I Plant so that the Company no longer uses high-calorie coal.

This coal procurement contract consists of Bukitasam-45 products with 4,500kcal / kg calories are 1.090.000 ton and Bukitasam-55 with calories 5,500kcal / kg are 603.000ton.

In addition, with the existence of this contract, the Company obtained coal prices that were more competitive with other cement industries due to the relatively long contract period.

This coal procurement contract is also a form of state-owned synergy that will strengthen the position of Semen Baturaja and Bukit Asam as the largest cement producer and coal producer in Southern Sumatra. (PR & Corsec PTSB)