Timah allocates Rp 1.2t for capex

By Brigida Ernestina Elu Wea

IDX-listed tin giant PT Timah Tbk has allocated Rp 1.2 trillion for capital expenditure (capex) this year, which is about the same with last year?s capex.

Timah Corporate Secretary Agung Nugroho said that about 70 percent of the capex plan would be used to finance the purchase of new equipment and maintenance, while the remainder will be allocated for its new businesses such as hospital, property, and rare earth production. The new businesses are expected to contribute about 20 percent to the company?s total revenue this year, with the bulk 80 percent to be contributed by its main tin business.

?But we?ll also be flexible, and see what the company needs,? Agung said.

He said that about 70 percent of the 2016 capex will be financed via bank loans, adding that the company currently has good relations with banks.

This year, Timah has set tin production and sales volume at 30,000 tons, which is relatively the same as last year?s. The company, however, is optimistic that price would start recover this year.

Editing by Reiner Simanjuntak