Delta Dunia delays acquisition of coal mines

PT Delta Dunia Tbk (DOIT), a holding company with investment on mining service, has delayed its plan to acquire coal mines as the company will this year focus on the company?s core business, Kontan reported on Saturday.

Rano Sofyan, the director of Delta Dunia, said that efforts to acquire potential coal mines continued but the realization of the acquisition plan would not be carried out this year.

The company said earlier that it was seeking a coal mine with reserves of between 20 million tons and 50 million tons for acquisition. Besides delaying its acquisition plan, Delta will also scale down its expansion plan as indicated by the company?s decision to cut down capital expenditures for this year.

?We cannot unveil the amount of capex for 2013, but there will be a significant drop from last year,? he added.

Rano said that the larger part of this year?s capex would be used to support the expansion of its subsidiary PT Bukit Makmur Mandiri Utama (BUMA), which provides mining services to several major coal producers.

BUMA expects to excavate between 36.4 million tons and 38.2 million tons from the company?s clients this year, between 5 percent and 10 percent higher than the previous year?s. The company?s clients include PT Adaro Energy, PT Berau Coal Energy and PT Kaltim Prima Coal. (*)