Golden Energy Mines to allot $150 million to boost production

Coal company, PT Golden Energy Mines, a subsidiary of the IDX-listed energy and infrastructure company, PT Dian Swastika Sentosa Tbk (DSSA) plans to allot between US$150 million and $200 million for capital expenditure which would be used to ramp up its coal production by over 80 percent next year.

President Director of DSSA, Krisnan Cahya said that the company expects to boost its coal outputs to 10 million tonnes in 2012 from this year?s production target of between 5 million tonnes and 6 million tonnes.

The company would also set aside part of the planned capital expenditure for working capital to support the coal trading activities by the Golden Energy.

He said that the capital expenditure source of funds would be from the release of DSSA shares and from the 15 percent sale of Golden Energy through an initial public offering (IPO).

Golden Energy Mines currently supplies its 5 million tonnes of coal per year to power plants and industries such as cement and paper both in domestic and overseas markets.

Golden has 14 mining concession areas covering 47,500 hectares in Sumatra and Kalimantan with the predicted total reserve of 849 million tonnes. (giok)