Mitrabara allocates capex for infrastructure development
Monday, June 8 2015 - 01:08 AM WIB
IDX-listed coal mining firm PT Mitrabara Adiperdana Tbk allocates most of the US$27.45 million of capital expenditure (capex) this year for infrastructure development at its coal concession in Malinau Regency, North Kalimantan. The company is currently expanding its coal port at Muara Bengalun and its coal handling facility.
?The progress of infrastructure development is 23 percent by the end of March 2015 and expected to finish in September 2015,? Mitrabara President Director Khoirudin said recently. The infrastructure expansion, he added, is required to support the company?s growing coal production.
Mitrabara allocates $14.16 million for building infrastructure, $9.9 million for coal handling facility and $3.39 million for machine and equipment.
The company will only utilize 4 million tons of its 5 million tons per annum total capacity, Khoirudin said, adding the company plans to evaluate the coal market outlook in 2016 whether or not it will add more coal production.
Mitrabara is benefitting from the premium coal markets in Asia as its coal qualities range from 5,400 to 5,700 kcal/kg (GAR) with low ash and very low sulfur, which mean environmental-friendly coal.
?We export our coal to premium markets in Taiwan, Japan, the Philippine and New Zealand,? Khoirudin said. He added that the premium markets contribute to the company?s growing coal production amid the global weak coal market.
Mitrabara?s coal export to Taiwan significantly grew to 1.2 million tons in 2014 from 194,000 tons in 2013. Mitrabara sets 4 million tons of coal production target for this year, compared to the realized 2.26 million tons last year.
Khoirudin suggested that the company is currently looking for new opportunities in India and domestic markets as Mitrabara coal is suitable for coal-fired power plants.
The company, a part of Baramulti Group, currently is producing coal from two coal concessions in Malinau regency, North Kalimantan. Mitrabara and its subsidiary PT Baradimika Mudasukses has accumulative 43.1 million tons of coal reserves.
Editing by Reiner Simanjuntak