Our Trading business is carried out mainly through our subsidiary, PT Deli Niaga Sejahtera (“PT DNS”). Our main trading product is currently thermal coal which we procure from coal mines located in South Kalimantan, Indonesia, for domestic and export sales. Customers for our Trading business are mainly coal traders, who procure coal for domestic end-users operating in various industries.
PT DNS does not engage in coal futures or derivatives trading and does not maintain any coal stockpiles. It minimises trading risks by sourcing for coal only after securing confirmed sales contracts, i.e. it will typically enter into back-to-back coal sale and purchase contracts with its customers and suppliers respectively.