Indonesian hard coking coal producer PT Borneo Lumbung Energi & Metal (Borneo) has indicated that it witnessed a sharp fall in its profits in the first six months of the current year due to 30 percent lower coal prices this year and higher operating costs.
Accordingly, in the first half of 2012, the company's net profits fell to $39.03 million, down 58.7 percent year on year, with its net sales decreasing six percent to $320.78 million despite a higher sales volume.
Borneo marketing director Kenneth Allan said in Jakarta on Wednesday, August 29 that the sharp drop in net profits was mainly caused by a plunge in coal prices and a sharp increase in operating costs.
In the January-July period of this year, Borneo's coal sales totaled 1.7 million metric tons, increasing by 30.8 percent as compared to the corresponding period last year, while the company plans to sell 4.3 million mt of coal by the end of the year, with a year-on-year increase of 43.3 percent.