Resource Alam spends US$1.26 million for exploration

By Tri Subhki R

IDX-listed coal company PT Resource Alam Indonesia Tbk (KKGI) spent US$1.26 million for exploration activity in October 2013, as reported in the company?s statement filed with the exchange. The exploration in Tanjung Barokah sub-block, East Kalimantan was conducted by one of the company?s subsidiaries, PT Insani Baraperkasa.

The company is conducting geological mapping and land acquisition to find out coal potential in the area. Resource Alam owns 24,447 hectares of concession in East Kalimantan which is divided into seven blocks and only four of the blocks have been producing commercially. Tanjung Barokah is part of Loa Janan block.

Resource Alam sets higher production target at 4.7 million tons in 2013 compared to 4.1 million tons of production realization in 2012. In its statement, Resource Alam posted $14.52 million of net profit in the first nine months of the year, or a 27.71 percent decrease compared to $20.09 million in the same period last year.

Editing by Reiner Simanjuntak