Golden Energy absorbs much lower capex

By Thomas Sembiring

IDX-listed coal mining firm PT Golden Energy Mines Tbk (GEMS)?s realized capital expenditure (capex) for this year is expected to be much lower than allocation.

Outgoing President Director Fuganto Widjaja said recently that the realized capex in the first nine months of this year reached about $3 million, and is estimated to only reach about $4 million, much lower than the $15 million budget.

He said that the company did not spend much on infrastructure development as the condition of the infrastructure facilities are still good.

He added that GEMS, just like other coal miners struggling with the weak coal environment, has been quite conservative in making spending throughout the year.

Fuganto, however, said that GEMS, which operates mines in Jambi, South Kalimantan, and Central Kalimantan provinces, plans higher capex next year. He did not disclose the figure.

Fuganto said last month that GEMS planned to acquire at least two coal firms next year in a bid to expand reserves.

Editing by Reiner Simanjuntak