Toba?s says capex to be mostly allocated for power plant project
Thursday, May 4 2017 - 03:50 AM WIB
IDX-listed coal mining firm PT Toba Bara Sejahtra Tbk said it has allocated an estimated US$60 million-$65 million worth of funds for capital expenditure (capex) this year.
The company said in a statement on Wednesday that 85- 90 percent of the planned capex will be allocated for the EPC phase of its power plant project, with the balance for the mining business including for land acquisition, and infrastructure/heavy equipment.
After securing a power purchase agreement (PPA) from state-owned electricity firm PT PLN on July 14, 2016 to develop a 2x50 megawatt (MW) coal-fired power plant (Sulbagut-1) in the Gorontalo Province, the company is striving to meet financial close by first semester 2017, after which the Engineering Procurement Contracting (EPC) phase is expected to commence in 2H17.
In translating the company?s vision, Toba Bara said it will continuously seek for opportunities in sourcing new power projects, which include, among others, renewables. ?This will be done through participation in IPP tenders as well as through acquisition of existing power assets,? it said.
Elsewhere, Toba Bara said Mine Plan Execution and Cost Management Discipline 2017 production and SR are targeted at similar numbers as in 2016 of 5 - 6 million tons and 12x - 13x, respectively. The company said itwill also maintain such cash cost level that has been achieved over the last few years through cost management initiatives.
The company also said it plans to continue to build well-diversified market destinations and customer base, maintaining product quality and timely delivery, as well as optimizing the current favorable coal price into the company?s average selling price.
The company currently has five operating subsidiaries, three in coal mining namely PT Adimitra Baratama Nusantara (ABN), PT Indomining (IM), PT Trisensa Mineral Utama (TMU) one entity in palm oil plantation namely PT Perkebunan Kaltim Utama I (PKU), and two entities in power generation, PT Gorontalo Listrik Perdana (GLP) and PT Minahasa Cahaya Lestari.
Editing by Reiner Simanjuntak