We operate our Coal Trading Business through our subsidiary, PT DNS. The thermal coal that we procure are supplied to mainly to coal traders who serve domestic end-users in various industries, including nickel smelting and cement manufacturing.
One of our key strengths is a reliable supply of coal. We have been and will continue procuring coal from third-party coal mines and coal mines related to our Founding Shareholders.
In financial year 2019, we secured fixed term coal sale contracts from customers for aggregate sales of up to 1.5 million metric tonnes (“MT”) of coal, and fixed term coal purchase contracts from suppliers for the aggregate supply of up to 1.9 million MT of coal.
The Group may enter into more fixed term coal sale and/or purchase contracts with our customers and suppliers, depending on our assessment of market conditions and opportunities.