PTBA plans higher capex next year

By Nova Farida

Petromindo

IDX-listed giant coal mining company PT Bukit Asam Tbk (PTBA) plans to allocate higher capital expenditure (capex) of Rp 4.5 trillion, compared to Rp 3 trillion planned for this year.

PTBA President Director Arviyan Arifin said on Tuesday that the capex will be among others invested in mining equipment, finance coal mine acquisition and various programs in the power plant business.

?Capex for next year is Rp 4.5 trillion. This year, the capex allocation was Rp 3 trillion,? he said, adding that the capex would be financed via internal funds and bank loans.

Arviyan confirmed an earlier report in this portal that the company plans to acquire a coal mine in Kalimantan next year as part of expansion strategy. He expected the acquisition to be implemented in the first semester.

He said that PTBA will invest in new equipment as it seeks to increase production to 27 million tons next year from this year?s target of 21 million tons.

He added the company will also expand the Kertapati port in Palembang from current capacity of 3 million tons per annum to 5 mtpa.

Editing by Reiner Simanjuntak