Bumi to invest US$100m until the end of this year

JSX listed PT Bumi Resources plans to spend around US$100 million in investment until the end of this year to increase coal production, Bisnis Indonesia daily reported on Wednesday.

The paper quoted company investor relations head Martinus Peter Tabalujan as saying that some $10 million would come from internal funds, while the remainder would come from the company's contractor partners.

Bumi controls to mining companies: PT Arutmin Indonesia (in South Kalimantan), and PT Kaltim Prima Coal (in East Kalimantan).

Meanwhile, director Kenneth P. Farrell said that Bumi had signed new coal mining contract in Bengalon area in East Kalimantan.

To develop the area, the company is teaming up with PT Darmha Henwa, a unit of Australia's Henry Walker.

"We expects the area could produce 6 million tons of coal in the first year, and jump to 18 million tons per year in the next three years," Farrel said.(*)