PT Bukit Asam (PTBA), a state-owned coal miner in Indonesia, declared force majeure after the collapse of a flyover in South Sumatra's Bantaian in Muara Enim regency.
The incident, occurred on March 7, has significantly impacted PTBA's coal railing operations, prompting the declaration of force majeure.
The collapse of the flyover had immediate repercussions on the coal railway operated by state-owned rail operator PT Kereta Api Indonesia, disrupting PTBA's coal transportation activities. Although coal railing has resumed, delays persist in the aftermath of the incident.
PTBA's Corporate Secretary, Niko Chandra, elaborated on the challenges faced, stating they could not carry out any coal railing activity for a full day when the accident happened. "Following this, we could only carry out activity using one track due to the evacuation happening at the time," he added.
The extent of the impact on coal volumes remains unclear; however, the incident poses a potential obstacle to PTBA's plans to increase coal rail volume to 33.69 million tonnes in the current year. In 2023, PTBA successfully railed 32.4 million tonnes of coal.
In 2023, PTBA produced nearly 42 million tonnes of coal, with 37 million tonnes being sold. The domestic market accounted for 58% of PTBA's sales, while key export destinations included India (13%), South Korea (9%), and China (6%), among others.
PTBA earlier announced its production guidance, aiming to produce 41.34 million tonnes of coal in 2024.
(Writing by Alex Guo Editing by Harry Huo)
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