Delta Dunia allocates 80% capex for heavy equipment purchase

By Nova Farida

Petromindo|Boim

IDX-listed coal mining contractor PT Delta Dunia Makmur Tbk has allocated around US$150 million-$160 million for capital expenditure (capex) this year.

Finance Director Eddy Porwanto said that much of the capex will be used for the purchase of new heavy equipment. ?Almost 80 percent (of the planned capex) will be used for heavy equipment, while the remainder for infrastructure, technology investment and innovation,? he told Petromindo.com on Tuesday following company public expose.

Delta Dunia, through its main subsidiary PT Bukit Makmur Mandiri Utama (BUMA), currently holds a total of eight contracts valued at around US$5 billion from clients including coal firms Adaro Indonesia, Kideco Jaya Agung, Berau Coal, Sungai Danau Jaya, Tadjahan Antang Mineral and Angsana Jaya Energi. ?The largest contract is with Berau, which accounts for almost 60 percent of the total contract,? Eddy said.

The company this year has set a target for coal getting volume to increase by 30 percent from 35.1 million tons last year, and revenue target of $700 million-$750 million.

Eddy said that the company is seeking to grab new contracts this year as it is currently in talks with a number of new potential clients. He declined to disclose their names.

Editing by Reiner Simanjuntak