RESOURCES PRIMA: Up-and-coming Indonesian coal miner

 
After being crushed, coal is loaded onto a barge which will transport it to a mother ship.
Photo: Company

6. Cost-reduction programme: Resources Prima has embarked on a significant cost reduction programme.

It has managed to lower the rate -- effective from May this year -- it will pay to a contractor to remove the overburden (the rock, soil, etc covering coal seams). This is possible through the use of explosives, instead of conventional excavation methods.

For illustration, under the new overburden removal rate, a reduction of US$0.31 per bcm (per bank cubic metre) would have yielded cost savings of US$3.7 million during 9M2015. See announcement here.

The company has also negotiated down the fuel prices it pays, and hire-purchased heavy equipment (instead of renting).

The resulting cost savings will lead to improved gross profit margins.

Watch the informative corporate video below: