Bhakti Coal Resources suspends new capex spending amid bearish market
Friday, August 30 2013 - 01:38 AM WIB
Indonesia emerging coal mining company, PT Bhakti Coal Resources, is refraining from making new spending of its capital expenditure budget amid the current coal market bearish situation.
?The company has suspended spending the rest of the capex budget due to the bearish coal market, so there?s still plenty of the budgeted capex which has not been absorbed yet,? Humala Oloan, Operational Director of Bhakti Coal Resources, told Petromindo.com Friday.
The current downturn in the global coal market, which has sent coal prices falling by more than 40 percent since its peak price in 2011, has forced many coal miners to focus on cost-saving measures.
Humala said that Bhakti Coal Resources has allocated a total Rp 750 billion of capex for the period of 2009-2015 to develop its coal concessions in Musi Banyuasin Regency, South Sumatra. The company has spent about Rp 450 billion of the capex budget, mostly used to finance acquisition, purchasing heavy equipment, developing infrastructure and office development.
Humala said that the company currently nine concessions, two of which are already in production stage. One of the concession, which has just started production is PT Bhumi Sriwijaya Perdana Coal, while PT Putra Muba Coal has been producing coal since 2009 with the capacity of 1.8 million tons per annum.
Editing by Reiner Simanjuntak