Berau Coal to spend $350 mln until 2014 to boost output

PT Berau Coal Energy plans to spend US$ 350 million between now to 2014 as it seeks to boost its production to 30 million tonnes, a company executive said on Wednesday.

The firm will use internal cash and retained earnings for its capital expenditure, said Rosan Perkasa Roeslani, Berau Coal president director.

Berau will spend US$126 million of the planned $350 million capital expenditure this year, he said.

The East Kalimantan miner spent Rp. 215.71 billion in 2010 from its initial public offering proceed which was used to build a coal terminal in Suaran, buaran regency as well as to build a coal-fired power plant.

Berau also used the proceed from IPO to buy a transhipment facility and 25 barges.

Nearly all Berau Coal's production for this year has been sold out with averaged prices of US$74 a tonne, a 21.3 percent increase from 2010 averaged price of $61 a tonne, said Rosan.

The firm is on track to achieve production target of 20.3 million tonnes this year against last year's 17.38 million tonnes.

The firm has said it needs additional 7 tugs and barges this year, on top 36 units the firm bought last year. (Giok)