capex adro when per 29X … 261210

Adaro sets US$603 million capex in 2011
Oleh Wisnu Wijaya | 24 December 2010

JAKARTA: PT Adaro Energy Tbk (ADRO-coded stock), one of the biggest coal producers in Indonesia, will allocate US$603 million capital expenditure (capex) in 2011.

The capex will be derived from the company’s internal cash, of which taken from bond proceeds and stand by credit facility

Deputy Corporate Secretary of Adaro Devindra Ratzarwin said the capex will be used to buy heavy equipments, support the project development of out of pit crushing conveyor (OPCC), and build mine mouth coal-fired power plant with a capacity of 2×30 MW.

“The capex allocation for 2011 is beyond the required funds for the barging project, IndoMet Coal project, and the company’s acquisition plan. Barging and IndoMet Coal projects needs US$90 million, while for the acquisition plan, we have not yet determined” he said to Bisnis yesterday.

The IndoMet Coal project, which is intended to produce coking coal, is a joint venture between Adaro’s subsidiary, namely PT Alam Tri Abadi and BHP Billiton.

Alam Tri Abadi holds 25% stake in the joint venture, while the remaining of 75% owns by BHP Billiton.

The project involves seven joint venture companies which hold seven concessions in Central Kalimantan and East Kalimantan.

The project of power plant is now handled by PT Makmur Sejahtera Wisesa.

According Devindra, to finance routine expenditure and heavy equipment requirement, Adaro plans to spend US$175 million and US$250 million, while for the OPCC project, the required funds will be set between US$125 million and US$150 million and the power plant project requires US$53 million.

The capital expenditure for the OPCC project which taken 2 years to establish (2011 and 2012) was estimated to eat up between US$250 million and US$300 million. While to build power plant in 2 years, the company will need US$106 million.

“Of the total power plant cost as much as US$160 million, we have spent US$54 million and the remaining of US$106 million will be allocated in the next 2 years,” he said.

Adaro Energy previously estimated its capital expenditure in 2011 to reach US$464 million. However, that number is enlarging due to an increase of the company’s needs in the next year’s capital expenditure.

Adaro Energy (ADRO-coded stock) in yesterday’s trading was closed up 2.02% to IDR2,525 per share reflecting the market capitalization of IDR80.76 trillion. Adaro stock was traded 29.32 times of the price to earning ratie (P/E). (t03/wiw)


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