Delta Dunia plans to buy new equipment following coal rise
Friday, September 2 2016 - 09:23 AM WIB
IDX-listed coal mining services company PT Delta Dunia Makmur Tbk said it is planning to buy new equipment in the third quarter or later this year as clients may expand production following recent rise in coal price.
Delta Corporate Secretary Errinto Pardede said Wednesday on the sidelines of the 4th Annual Coal Buyers and Producers Meeting held by Petromindo.com that the company wants to replace existing old equipment with new ones to bolster productivity.
He said that the company has allocated US$80 million to $120 million worth of capital expenditure for this year, much of which to help finance the acquisition of the new equipment.
?Coal price has started to increase, we?re making preparations in case our existing clients want to raise production, or we may get new contract,? Errinto said, adding that the company was looking into the possibility of getting one or two new contracts.
In the meantime, Delta Dunia maintain this year?s coal production target at 31 million tons, and overburden removal of 270 million bcm. Errinto, however, said that if clients decide to increase production or the company gets a new contract, this year?s production may exceed the target by 3-5 percent.
Editing by Reiner Simanjuntak