Singapore-listed Golden Energy and Resources or GEAR said late Monday it produced 4.7 million mt of thermal coal in Indonesia in the first quarter, up 56.67% year on year, and was on track to achieve its target output for 2018 of over 20 million mt.
The company produced 15.6 million mt of coal in 2017 and is aiming for a 28% year-on-year increase in 2018.
Its weighted average selling price over Q1 was $47.35/mt, up from $40.86/mt a year earlier.
Thermal coal prices have been on a rise in the past two years amid strong demand from China and Southeast Asia, while supply has remained tight.
The price of FOB Kalimantan 4,200 kcal/kg GAR has surged 37% since the start of 2017 to be assessed Monday at $44.50/mt, S&P Global Platts data showed. The grade hit a year-to-date high at $51.50/mt in the second half of February, according to Platts data.
GEAR said it expects Indonesia's domestic coal consumption to exceed 100 million mt this year given the government's ongoing electrification program.
The company has coal mining operations in South Kalimantan, Sumatra and Central Kalimantan through its subsidiaries PT Borneo Indobara or BIB, PT Kuansing Inti Makmur and PT Trisula Kencana Sakti.
Looking ahead, GEAR said it expects to see strong demand for its BIB coal from key Asian markets such as China, India and South Korea.
"GEAR expects demand to be firm at current levels for the rest of the year, driven by robust coal use in Asia, which accounts for over 70% of global thermal coal consumption," the company said in a statement.
Last November, the company said it received approval from the Indonesian government to raise BIB's annual coal production to 14.4 million mt from 12 million mt.
It produces thermal coal with a heating value of 4,000-5,300 kcal/kg GAR and sells nearly half its output in Indonesia. It also has customers in China, India, South Korea and the Philippines, according to the company's website.