Delta Dunia?s coal production down

IDX-listed mining services company PT Delta Dunia Makmur Tbk saw over burden removal volume last year fell by 6.8 percent to 276.7 million bank cubic meters (bcm) from 297 million bcm in the previous year amid lingering weak global coal market, Kontan reported on Thursday.

The paper quoted Director Erinto Pardede as saying that the company?s coal production in 2014 was also lower at 30.9 million tons compared to 32.6 million tons in 2013.

Erinto said over burden removal volume this year is projected to be the about the same as last year?s as the coal market is expected to remain sluggish.

Delta Dunia, however, aims to increase capital expenditure this year to US$56 million from $40 million last year, to be funded entirely by internal cash, which as of September 2014 stood at $155.4 million. The funds will be used on heavy equipment, and expansion programs.

The company hopes that coal-fired power plant development in the country to increase domestic demand for the commodity. (*)