30 May 2017
Coal miner Toba Bara prepares US$60 million capex in 2017
Publicly listed coal miner PT Toba Bara Sejahtra has allocated US$60-65 million in capital expenditure this year, 85 to 90 percent of which will be used for the initial engineering, procurement and contracting (EPC) phase of its Sulbagut-1 coal-fired power plant project in Gorontalo province.
The company, controlled by the family of Coordinating Maritime Affairs Minister Luhut Pandjaitan, expects the Sulbagut-1 plant to reach financial close before the end of the first half so that it can immediately enter the EPC phase.
The Sulbagut-1 plant, estimated to have a total investment value of around $170 million to $220 million, will have a production capacity of 2x50 megawatts (MW).
“Given the coal industry’s important role in the ongoing 35 gigawatts [GW] program as well as in future ones, PT Toba Bara Sejahtra identified an opportunity for both coal industry and power industry in creating synergistic value by expanding downstream to the power sector,” the company said in a statement published recently in the Indonesia Stock Exchange’s (IDX) website.
Toba Bara produced 1.1 million tons of coal in the first quarter of 2017 and aims to mine a total of 5 to 6 million tons of coal by year-end.
At the same time, it recorded $62.7 million in sales, down 1.4 percent annually. However, the company was able to book a total profit of $10.2 million, up 96.2 percent year-on-year compared to the first quarter of 2016. (bbn)