Borneo?s capital expenditure budgeted at $5m this year

By Cepi Setiadi

IDX-listed hard coking coal mining company PT Borneo Lumbung Energi & Metal Tbk has budgeted US$5 million of capital expenditure in 2015 amid market downturn.

Borneo's Director Kenneth Raymond Allan told Petromindo.com on Monday that funds have been spent by the company in this first half year.

?The budget is mostly allocated for equipment,? Allan said without elaborating further.

He added the company is targeting 2 million tons of production this year which is lower than the previous years? production. The company produced 2.1 million tons in 2014, down from 4.2 million ton in 2012 and 3 million ton in 2013.

?As the coal price is still slowing down, we are putting a realistic target,? he said adding that aside from lowering production, the company is also applying other strategies to cope with the market downturn, such as reducing the stripping ratio and producing coal more efficiently.

Editing by Johannes Simbolon