PT Bumi Resources Tbk. (BUMI) prepares capital expenditure (capex) funds of USD 40 million to USD 80 million.
“BUMI still has very large coal reserves and resources in KPC and Arutmin, so that the 2024 capex funds to be used are USD 40 million to USD 80 million,” said BUMI Director/CFO, Andrew Beckham.
The volume of coal production in 2024 will reach 80 million tons, but until now, BUMI has not finalized this year’s performance target.
In addition, the company also views that coal prices can still increase in 2024, in line with the situation of world geopolitical uncertainty and winter, which have an impact on the high demand for coal for electrical energy.
As a result of the very favorable weather conditions in the mining area, until the end of September 2023, BUMI recorded a total production of 56.2 million tons. This figure increased by 5% compared to the same period last year of 53.7 million tons.
In addition, the company, which is a joint venture between the Bakrie Group and the Salim Group, will carry out various expansion plans in the next few years.
One of the main agendas is to expand into the downstream coal industry to support the government’s target for Indonesia’s decarbonization.
This is also part of the requirements for the extension of Mining Business Licenses (IUPK) in BUMI’s two subsidiaries, namely PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia (Arutmin).
“The company is very open to exploring strategic partnerships in order to efficiently and effectively finance this downstream project,” said BUMI Director and Corporate Secretary, Dileep Srivastava.
“We are also looking for the latest technology, potential buyers, ESG-supporting funding, profits, and policies that support companies to get attractive incentives from the government for the creation of sustainable energy,” added Dileep.
Image source: BUMI