The Jakarta Post, Jakarta | Tue, 04/03/2012 8:30 AM
At its annual shareholders meeting on Monday, the firm announced it would spend US$208 million to develop infrastructure and technology for its six mining subsidiaries and acquire local coal firms to support its expansion.
“Total coal sales last year reached 24.7 million tons, of which 22.6 million tons went to China and several other Asian countries and Italy and the remaining 2.1 million tons were sold on the domestic market,” ITM finance director Edward Manurung said.
The company, which is 65 percent controlled by Thailand’s Banpu Minerals Co. Ltd., booked US$546.13 million in net profits last year, up 167 percent from $204.15 million in 2010. Indo Tambang’s operations director Pongsak Thongampai was appointed to replace outgoing president
Somyot Ruchirawat at the meeting.
The company will use internal reserves to finance 2012’s capital expenditures, which have been allocated for its subsidiaries and the acquisition of local coal companies.
“By acquiring local coal companies around our mines, we are better able to utilize our existing infrastructure. Therefore, we will be able to save on operational costs and secure more revenues,” Edward said.
PT Indominco Mandiri and PT Trubaindo Coal Mining are the company’s subsidiaries with the largest capital expenditure allocations, at $108 million and $80 million respectively. PT Bharinto Ekatama and PT Kitadin in Tandung Mayang start production this year.
ITM has predicted it would sell all of its expected output at $100 per ton in 2012, a slim increase over last year’s average sale price of $97.10 per ton.
Edward said the company would allocate 10 percent of its total production for the domestic market, up from an 8.5 percent allocation, or 2.1 million tons, in 2011.
As of March 20, ITM had the 17th-largest market capitalization of companies traded on the Indonesian Stock Exchange.
ITM is estimated to have 1.627 million tons of coal resources and 417 million tons of coal reserves. (yps)