Darma Henwa allocates greater capex for this year

By Nova Farida

Petromindo

IDX-listed coal mining services company PT Darma Henwa Tbk said it has allocated a larger capital expenditure (capex) of US$72.1 million for this year, compared to $40.4 million last year, for the purchase of heavy equipment as it plans higher coal production volume at mines owned by clients.

?For this year, the capex is set at $72.1 million for the purchase and refurbishment of heavy equipment at existing projects,? said Head of Corporate Secretary and Investor Relations at the company, Mukson Arif Rosyidi on Friday following a shareholders meeting.

He said that about $47.8 million of the total capex will be allocated for the Bengalon mine project in East Kalimantan owned by sister company PT Kaltim Prima Coal (KPC). Another $23.3 million will be allocated for the Asam-Asam coal mine project in South Kalimantan owned by PT Arutmin Indonesia, also a sister company under the Bakrie Group. Meanwhile, the Satui mine project in South Kalimantan, owned by PT Cakrawala Langit Sejahtera (CLS) will get capex allocation of $646,800.

Darma Henwa sets coal production volume target of 23 million-24 million tons this year, higher than last year?s 15 million tons. The Bengalon mine is targeted to produce 12 million tons, higher than last year?s 8 million tons; while production at Asam-Asam mine is targeted to increase to 7 million tons from 5 million tons; and production at Satui mine will increase to 4 million tons from 1.5 million tons.

The coal production target, however, is a downward revision from the initial target of 29 million tons. Kontan quoted Darma Henwa?s Director of Operation Agus Effendi as saying that the downward revision was made after planned production activity at Mulia coal mine project in South Kalimantan owned by CLS is suspended due to heavy rainfall.

Editing by Reiner Simanjuntak