ITMG to allocate greater funds to develop Indominco coal mine
Thursday, January 23 2014 - 05:31 AM WIB
IDX-listed coal miner PT Indo Tambangraya Megah Tbk (ITMG) said that it would further develop the East Block of its main coal mine in East Kalimantan operated by subsidiary PT Indominco Mandiri.
In a statement to the Indonesia Stock Exchange on Wednesday, the company said that it would allocated greater funds of Rp 295.80 billion to develop the bloc, compared to the initially planned allocation of Rp 188 billion (US$20 million).
The extra funds come from the remaining funds initially allocated to finance the construction of a coal fired power plant at the Indominco mine.
The company, in unveiling the allocation of funds raised from 2007 initial public offering, said that based on the IPO prospectus, the company initially planned to allocate between Rp 188-234 billion of the IPO proceeds to finance the construction of the power plant. But it turns out that only Rp 126.12 billion was used up to complete the construction of the plant, allowing the company to reallocate the balance for the development of the East Block of the Indominco mine, which accounts for about half of ITMG coal production.
ITMG said it would seek approval from shareholders for the reallocation of the IPO proceeds. No further details were given about the planned development of the Indominco East Block operation.
Editing by Reiner Simanjuntak