An excavator loads coal onto a truck in the open pit coal mine at the Exploitasi Energi Indonesia operations in Asam-Asam, South Kalimantan, Indonesia, on Monday Oct. 29, 2012. Credit photo (Bloomberg Photo/Dadang Tri), Jakarta Globe reported news.
Coal miner Exploitasi Energy plans Rp 1.6 trillion ($164 million) in capital expenditure this year to develop its coal mining infrastructure and power plant development, a company executive says, Jakarta Globe reported news.
This year’s capex is more than 100 times last year’s Rp 15.8 billion. This year 60 percent will be used for coal mining and 40 percent for constructing coal-fired power plants, chief financial officer Danar Wihandoyo said.
“This year is the investment year for us. It [the sharp increase in capex]is normal. With huge investment, we expect higher margins,” Danar said after announcing the company’s first-quarter earnings.
Danar said that Exploitasi’s plan to develop its coal mining unit, Sekti Rahayu Indah, includes adding conveyor belts and hauling roads and revamping its coal terminal. The unit has a coal mining concession in Sampit, Central Kalimantan.
Last year Exploitasi produced around 3 million tons of coal from Sekti and its other coal mining unit, Turba Dewata Guna Persada.
The company, which sells the bulk of its coal via long-term contracts with state electricity company Perusahaan Listrik Negara, plans to boost its power-generating capacity.
President director Henry H. Sitanggang said that for the next 20 years, Exploitasi — previously known as Central Korporindo Internasional — wanted to build electricity plants with capacity of up to 5,000 megawatts (MW).
Currently, Exploitasi has one power plant in Pangkalan Bun, Central Kalimantan, with two generators that have the capacity to produce 7 MW. It has been operational since November 2011.
The company plans to upgrade the generating capacity to a total of 100 MW from two turbines.
Exploitasi is also developing two other power plants in Tembilahan and Rengat in Riau, each with two 7 MW turbines. Construction of the two plants started in January.
Henry said on Tuesday that the Tembilahan and Rengat plants are expected to operate by the third quarter of 2014.
Exploitasi announced on Tuesday that its profit rose 25 percent to Rp 25 billion in the first quarter of this year compared to a year earlier. The company’s revenue grew 4 percent to Rp 510 billion.
In March, it was reported that businessman Kusno Hardjianto wanted to sell a 25 percent stake in Exploitasi as he sought to free up cash for property projects, but the outcome remains unclear.
Shares in Exploitasi rose 1.4 percent to Rp 365 in Tuesday trading in Jakarta.