JAKARTA: PT Timah Tbk is expected to allocate capital expenditure (capex) more than IDR800 billion in 2010 to continue its business expansion.
Corporate Secretary Timah, Abrun Abubakar, said that several expansions to do next year include finishing the construction of Tin Chemical facility in Banten, assembling production equipment, and constructing bucket wheel drive.One work to continue is procuring production suction vessel. We target to own 5 units. But, we will possibly have only 3 units, and the remaining 2 units will be acquire in 2011, he said today.According to Abrun, the exact amount of capital expenditure will be published after the commissioners approve the working plan and budget, which is being arraged by the directors.The working plan and budget will be finished within a week, and the investment plan of the company will soon be revealed, Abrun continued.Apart from expanding the existing business, Timah is also targeting new business line, i.e. coal mining. However, to realize the plan, the state-owned mining company is still looking for the appropriate company.Through September, Timah had absorbed not more than 50% of the capital expenditure (capex) allocated this year as much as IDR800 billion. The assumed low capex was caused by slow business realization, which has been maximized since the fourth quarter of 2010.Some of the allocated capital expenditure will be used to develop downstream business, including processing tin.In the meantime, concerning the plan to add coal reserves, Timah is still looking for a company to acquire. However, he did not mention how many companies to acquire and how much money to spend.Timahs subsidiary, PT Timah Investasi Mineral, has been operating coalmines with calorie as much as 6500 - 7000 Kkal and sulfur below 1%. (t04/wiw)
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