AKR sets aside Rp 250 billion for its mining infrastructure

PT AKR Corporindo Tbk this year will build infrastructure projects around its coal mining site in Barito Utara, Central Kalimantan, including road, port and other supporting infrastructures. The company sets aside Rp 250 billion to finance the projects.

The infrastructure projects are needed to support its coal production activities. AKR targets to produce coal up to 300,000 tons this year. The company has appointed PT Karunia Bumi Khatulistiwa as contractor of its mining production.

Finance Director of AKR Corporindo, V. Suresh, was quoted by Investor Daily as saying the company will use internal cash flow to finance the construction projects. The company currently has strong cash position after divesting all its shares in PT Sorini Agro Asia Corporindo Tbk (SOBI) to Cargill Inc worth Rp 2.2 trillion.

The company also raised Rp 530 billion from rights issue last year, said Suresh.

The company?s cash and cash equivalent stood at Rp 1.5 trillion as of end June this year, surged 127 percent from December 2010 position of Rp 691 billion.

Suresh expects the development of infrastructure projects to be completed by end 2012. Meanwhile, AKR Corporindo President Director, Hanyanto Adikusumo said that the company?s coal exports are scheduled for October this year, with initial volume of 40,000-50,000 tons. The price of coal is set in line with ICP (Indonesia Coal Price) benchmark. (*)