ABM allocates much lower capex for 2016

IDX-listed integrated mining and energy company PT ABM Investama Tbk plans to allocate US$45-50 million for capital expenditure (capex) next year, much lower than the $200 million allocated for 2015, amid the lingering downturn in the coal mining industry, Kontan reported on Monday.

The paper quoted ABM Investama Yovie Priadi as saying that the planned 2016 capex would be primarily used to help finance power plant projects, and infrastructure and logistics development.

Yovie said that ABM is currently waiting for the tender result of a number of power plant projects including coal and gas-fired.

ABM currently owns a number of power plants with combined capacity of 1,100 MW in Aceh, North Sumatra, South Sumatra, Jambi, South Kalimantan, East Kalimantan, and Sulawesi.

Next year, ABM will also diversify its mining contractor business to also include non-coal sector such as iron ore.(*)