Toba Bara allocates $10-14m for 2016 capex

IDX-listed coal mining firm PT Toba Bara Sejahtera Tbk said it has set aside between US$10 million and $14 million for capital expenditure this year, which is the same as last year?s allocation, to support its ongoing sustainability strategy.

?The planned capex is expected to support its operational mining facilities and equipment (conveyor and heavy equipment) and plantation entity,? Toba Bara said in a statement Tuesday when unveiling its 2015 financial performance results, in which the company reported lower sales revenue and profit due to a combination lower sales volume and selling price.

As has been previously reported by this portal, Toba Bara reiterated that it has set coal production target of 5-7 million tons for this year, or about the same as last year?s. As part of efficiency measures to help cope with the current coal downturn, the company said it will stabilize stripping ratio at 11x-12x level, lower than last year 12.3x.

?Given the continued adverse and more complex market dynamics, the company is expected to focus its resources and efforts on strengthening resilience and identifying viable avenues to generate sustainable long term growth,? Toba Bara said in the statement. ?For the past few years, the company has been continuously improving cost efficiencies by running executable mine plans that meet the combined objective of achieving profitable targets and preserving reserves,? it added.

In line with this objective, the company said it focuses on its continuous strategy of improving operational, cost management, marketing capability.

The company currently has four operating subsidiaries, three in coal mining namely PT Adimitra Baratama Nusantara (ABN), PT Indomining (IM), PT Trisensa Mineral Utama (TMU) located in East Kalimantan.

Editing by Reiner Simanjuntak