MYOH Action: Samindo Resources is Seduced by 1,000MW Electricity Business
Bisnis.com, JAKARTA – Coal mining contractor PT Samindo Resources Tbk is starting to look into the electricity business with capacity up to 1,000 Megawatt due to the low price of commodity.
Soemarno Witoro Soelarno, Director of Samindo Resources said that the loss inflicted from the coal business due to the low price of commodity could be covered if the Company engaged in electricity business. The construction of steam generator electricity is a solution to boost the Company’s revenue.
“Capacity with 100 MW – 200 MW will be self-managed. Over such capacity until 1,000 MW will be done with consortium” he said after the public expose Tuesday (3/5/2016).
Company with ticker code MYOH is targeting to grasp ownership up to 20% if conducting a joint venture. At this moment, many local companies are conducting feasibility view with the Company to build a joint power plant with the Company.
The construction of the steam power plant is projected to be at the mouth of the mine. The Company is also targeting to acquire coal mine with reserved of more than 200 million tons to satisfy the needs of such power plant.
Investor Relation Samindo Resources Ahmad Zaki Natsir said that the Company will expand its wings to the palm plantation and electricity businesses. It is targeted that the electricity is to complete the feasibility period by the end of this year.
“Plantation is more speedy, targeted location is in Kalimantan, Sumatra, Bengkulu, Bangka” he said.
Funds to expand in the palm plantation and electricity sectors is certainly not coming from capital expenditure. In this year, the Company allocates US$2.4 for operational purpose.
In this year, the Company aims to settle the bank loan up to US$33.5million, with achievement US$13.5million in April 2016. By the end of the year, it is projected that MYOH bank loan will remain US$20million.
In the Q1/2016, the Company recorded a decreasing 11% overburden removal to 11.9million bcm from 13.4million bcm in last year. Coal hauling also decreased 5% becoming 7.5million tons from 7.9million tons.
“However, coal getting increased 11% to 3 million tons from 2.7million tons. Production target in the first 3 months reached 2.3million tons. All is over the target” he said.