ABM allots $119m for 20% growth of overburden removal

By Hiski Darmayana

IDX-listed integrated energy company, ABM Investama Tbk., said that it would budget US$335 million for capital expenditure this year with 70 percent of which would be raised from bank loans and the remaining would come from internal cash.

The company said that capital expenditure would be allocated for each subsidiary of PT Reswara Minergi Hartama with $62 million, PT Cipta Kridatama of $119 million, PT Sumber Daya Sewatama with $62 million, PT Cipta Krida Bahari of $73 million and for PT Sanggar Sarana Baja with $19 million.

Finance Director of ABM Investama Willy Adipradhana said that the capital expenditure to mining contracting Cipta Kridatama would be used to meet the increased target of overburden removal in 2012.

?We target a 20 percent growth of overburden removal by Cipta Kridatama,? he said, adding the company recorded some 118 million bank cubic meter (bcm) of overburden removal last year.

Editing by Adianto P. Simamora