Jan 04, 2017 11:19:41

Resource Alam allocates capex US$1.5 million

PT Resource Alam Indonesia Tbk ($KKGI) will allocate the capital expenditure (Capex) of USD1.5 million to maintain the heavy equipment in order to boost the coal production in 2017.

Director of PT Resource Alam Indonesia Tbk, Agoes Seogiarto Suparman, said their coal production target was as much as 4.5 million ton in 2017. "To support the target, the company's capex will not be too big because the capex will be used to maintain and support heavy equipment," he said in Jakarta.

According to him, their coal production was mostly contributed from PT Insani Baraperkasa, the coal mining in East Kalimantan with the land concession of 24,477 hectares. In addition, PT Kaltim Mineral has conducted coal exploration and will support the coal production next year. PT Loa Haur will operate in 2017 and hopefully will increase the company's coal production. (LK)