JAKARTA (TheInsiderStories) – Indonesian coal miner, PT Indika Energy Tbk (IDX: INDY) prepared capital expenditure around US$130 million in 2021 from this year targets $100 million, said the management. Most of this year’ funds used for fuel storage terminal project, Interport, in Eas Kalimantan worth of $30.2 million.
The project has now been completed and operated since early November. The deputy director, Azis Armand, said the holding company of PT Petrosea Tbk (IDX: PTRO) and PT Mitrabahtera Segara Sejati Tbk (IDX: MBSS) aimed to diversify its business portfolio outside the coal sector.
The issuer targeting the non-coal sector to contribute up to 50 percent of overall revenues by 2025. This year, Indika targeting the coal production volume for PT Kideco Jaya Agung around 33 million tones (MT) of coal from an initial target of 29 MT of coal. While, the production volume of PT Multi Tambangjaya Utama is estimated about 1.3 MT of coal by the end of this year.
As of the first nine months of 2020, the company has produced 23.9 MT of coal through Kideco and 1.1 MT of coal from Multi Tambangjaya. When compared to the same period last year, the production of Kideco fell 6.6 percent and Multi Tambangjaya dropped by 7 percent.
In this month, the miner just signed an agreement with state-owned energy firm PT Pertamina and other coal producer, PT Adaro Energy Tbk (IDX: ADRO), to develop coal gasification into Dimethyl Ether. In order to support earnings, the miner has taken steps to reduce operating cash costs at its 91 percent-owned coal mining subsidiary, Kideco, from $35.8 to $32.3 per ton in the first half of 2020.
Its contract mining subsidiary Petrosea and the engineering subsidiary PT Tripatra Multi Energi, are also seeking new contracts to boost their contract order books which have been declining in recent years.
Indika is an integrated energy group listed on Indonesia Stock Exchange, with a market capitalization of around Rp4.8 trillion ($340.42 million) as of Oct. 9. Its principal investment, Kideco, is one of Indonesia’ largest domestic coal producers.
Written by Editorial Staff, Email: firstname.lastname@example.org