Dewata budgets US$5m for capital expenditure in 2016

By Cepi Setiadi

Coal mining company PT Darma Putera Wahana Pratama (Dewata), through its subsidiary PT Naan Bara Abadi, has allocated US$5 million for capital expenditure in 2016 to finance the development of its coking coal concession in Murung Raya, Central Kalimantan.

Paulus W. Broto, President Director of PT Darma Putera Wahana Pratama told Petromindo.com recently that the capex will be allocated for financing the early stage of exploration activity.

Earlier, he revealed that the company expected to obtain the forestry license for the concession in the first quarter of 2016. ?As soon as the license is obtained we will enter the exploration stage and the capex mostly will be allocated for this exploration activity,? he said.

The concession has a total area of 24,000 hectares and is estimated to have hundreds million tons of resources. The company has set a target to commence production from the concession by 2017.

Editing by Reiner Simanjuntak