Bumi to increase coal output next year

IDX-listed giant coal mining firm PT Bumi Resources Tbk plans to slightly increase coal output next year to around 90 million tons from the estimated 86 million tons this year following recent recovery in the price of the commodity, Kontan reported on Saturday.

The paper quoted company Director and Corporate Secretary Dileep Srivastava as saying that Bumi will allocate capital expenditure of US$50 million-$100 million next year to help meet the higher production target, as well as for maintenance and financing operation. The entire capex will be financed by internal funds, he said.

Dileep said that to help meet the production target in 2017, output from subsidiary PT Kaltim Prima Coal will be increased to 64 million tons from the estimated 59 million tons for this year. Bumi operates another subsidiary PT Arutmin Indonesia. (*)