Bumi plans to spend $122m of capex this year
Wednesday, June 22 2011 - 03:54 AM WIB
Of $122 million of capex in this year, Bumi will spend $96 million at East Kalimantan coal miner PT Kaltim Prima Coal (KPC) and about $26 million at South kalimantan coal miner PT Arutmin Indonesia.
Bumi will develop the infrastructure at the Sangatta and Bengalon blocks, primarily on an upgrade of the Sangatta coal terminal, replacement of worn out or obsolete property, machinery and equipment and infrastructure development.
Bumi will also plant to build new port facilities and coal chains at Arutmin?s Mulia and Satui blocks.
KPC and Arutmin are expecting to produce 74.8 million tonnes in 2011, up from 60.4 million tonnes in 2010.
The company is currently exploring the possibility of entering into arrangements with infrastructure development companies and mining service contractors under which those companies would develop, build, finance and complete the construction and installation of the coal production, processing and transportation machinery, equipment and infrastructure necessary to complete the Bumi?s proposed expansion programs.
Bumi would also enter into rental or service agreements with those companies under which the group would pay those companies rental or other service fees for use of this machinery, equipment and infrastructure in the group?s operations.
Bumi currently intends to fund its expansion plans in 2011 from cash on hand and cash generated internally from its existing mines as well as through its mining contractors, which have received financing commitments for their expansion activities in 2011.
In addition, Bumi intends to look to third parties to fund its expansion in infrastructure wherever possible in return for Bumi?s commitment to enter into operating leases or rental contracts for the infrastructure.
KPC produced 8.2 million tonnes of coal in the first quarter of 2011, a decrease of 9.2 percent from the first quarter of 2010, due to higher than anticipated rainfall. But this was offset by a higher average sales price of $92.78 per tonne, an increase of 41.9 percent over the first quarter of 2010.
PT Arutmin Indonesia produced 6.0 million tonnes in the first quarter of 2011, a small decrease of 0.5 percent from the first quarter of 2010 with higher average sales price of $77.10 per tonne, an increase of 31.6 percent over the first quarter of 2010. (denny)