Berau raises capex to US$691M this year
Tuesday, February 28 2012 - 02:39 AM WIB
Berau Coal Energy's President Director Rosan P. Roeslani said in Jakarta on Monday that his company - the fifth largest producer of coal in Indonesia - would realize its production increase by developing two new mines and by raising its existing production capacity.
?We target that our coal production in 2014 will reach 33 million tons," Rosan told Investor Daily in Jakarta on Monday.
Berau Coal has a coal mining concession of 1,200 square kilometer in three locations in East Kalimantan, namely Lati, Binungan, and Sambarata.
Last year, the production of Berau, which is the subsidiary of Bumi Plc, was recorded at 20 millon tons. Its unaudited net profit last year amounted to US$180 million or about Rp 1.62 trillion, an increase of 162 percent compared to Rp 619.83 billion in 2010.
This year, Berau has targeted to produce 23 million tons of coal or an increase of 5 percent compared to that in 2011. It sold its coal products to a number of power plants. its exports are mainly to Asian countries like China, India, Taiwan, and Korea.
Meanwhile, Mandiri Securities reported that based on its recent research, the coal mining was still a promising business. It predicted that Berau's coal production last year reached 20.4 million tons and it would jump to 24.1 millon tons this year, to 27.1 million tons in 2013.
During the period of 2008-2010, Berau Coal has an yearly average growth of 30.5 percent, and during 2008--2013 it is predicted to become 30.8 percent.
Its average growth of profit before tax, interest, depreciation and amortization (EBITDA) per year would reach 33.6 percent until 2013. Its EBITDA in 2013 is projected to reach US$816 million. (*)