Toba allocates $25 million for capital expenditure

IDX-listed PT Toba Bara Sejahtera Tbk (TOBA) has allocated about US$25 million for capital expenditure (capex) for this year, Kontan reported on Saturday.

The company?s corporate secretary Perry B. Slangor said in Jakarta Friday that all of the capex needs would be taken from internal source. As of September 30, the company?s cash and cash equivalent reached a total of $39.27 million.

Toba will use the capex to develop infrastructure facilities of subsidiary PT Admitra Baratama Nusantara such as for construction of hauling roads.?It will also include the construction of a conveyor, ? Perry said.

The development of Admitra?s coal mine is expected to be able to support Toba?s plan to increase production by 5.45 percent to 6.4 million tons this year from about 5.5 million tons in 2012.

Toba which also exports its coal to Taiwan, China and South Korea, will use part of the capex to acquire coal mines of other mining firms in East Kalimantan. (*)