Gag Nikel allocates Rp 35 billion for capex this year

By Cepi Setiadi

PT Gag Nikel, a wholly owned subsidiary of IDX-listed mining firm PT Aneka Tambang Tbk (Antam), allocates Rp 35 billion for capital expenditure (capex) this year.

Ady Taufik Yudisia, PT Gag's Operational Director told Petromindo.com on Thursday that the capex will be used to finance construction activities at the mining site as the company aims to commence production of nickel ore in Gag Island, West Papua, in the second semester of this year.

"Hence, all the capital expenditure will be spent for construction at the mine location," he said, adding that the company will not spend capital for buying heavy equipment. "For the heavy equipment, we might rent them from other parties or using mining contractors," he said.

Ady said that the planned capex does not include funding requirement for jetty development.

Editing by Reiner Simanjuntak