Adaro allocates larger capex for Indomet
Thursday, April 27 2017 - 01:02 AM WIB
Petromindo|Lucky
IDX-listed coal giant PT Adaro Energy Tbk has allocated around US$250 million for capital expenditure (capex) this year, the bulk of which to be used to finance the development of its coking coal projects in Kalimantan.
?A larger part (of the capex) will be used (for the coking coal project). The target is probably around $100 million to $140 million,? said David Tendian, Finance Director of Adaro, on Wednesday.
He said that the capex will be used among others for financing the development of infrastructure facilities and exploration activities.
Adaro in October of last year completed the acquisition of BHP Billiton?s entire 75 percent interest in IndoMet Coal Project for $120 million, thus making Adaro to own 100 percent of the project, which has concessions in Central and East Kalimantan run by several firms including PT Maruwai Coal, PT Juloi Coal, PT Kalteng Coal, PT Sumber Barito Coal, PT Lahai Coal, PT Ratah Coal, and PT Pari Coal.
David said that Indomet started production last year but was limited at producing soft coking coal.
Meanwhile, Adaro President Director Garibaldi Thohir said that Indomet?s production this year is estimated at around 1 million tons, the same as last year?s.
Editing by Reiner Simanjuntak