Rimau Group? capital expenditure reaches $2m

By Cepi Setiadi

Coal mining group Rimau Group has allocated US$2 million in capital expenditure for this year, much less the amount of last year.

President Direcdtor Vinsensius told Petromindo.com on Friday that the budget will serve as stand-by funds to meet the needs that may occur during mining operation this year.

?We will use the funds for supporting equipments such as dozer, dump truck etc which may need upgrading. Hence, the funds will be used for operating costs and maintenance? Vinsensius said.

The firm spent a huge investment last year ? more than $50 million ?to prepare for this year?s production activities.

?We spent huge capital expenditure last year to achieve the target of increasing output up to 7 million ton this year from 4.6 million last year,? he said.

The production is expected to come from subsidiaries PT Rimau Energy Mineral (REM) and PT Senamas Energindo Mineral (SEM) both with concessions located in Central Kalimantan

Editing by Johannes Simbolon