Overburden Removal Samindo Exceed Target
The realization of overburden removal of PT Samindo Resources Tbk (MYOH) coal throughout 2017 has exceeded the set target. This is shown an increase in volume of 7.4% to 51.6 million bcm over the past year.
Samindo Resources is a holding company that has core business of providing coal mining services, such as overburden removal and coal getting, coal hauling, geological mapping and drilling. The coal mining contract business is run through its subsidiary PT SIMS Jaya Kaltim (SIMS).
Investor Relations of Samindo Ahmad Zaki Natsir, said that the overburden removal activity which is the main revenue source of the company recorded a growth of 7.4% in 2017, compared to the same period of the previous year. The increase in overburden removal volume has exceeded the target set at the beginning of the year.
"The achievement is remarkable in the midst of various obstacles faced by the company in 2017. The main obstacle faced last year was the cessation of operations due to high rainfall. Rainfall also causes an increase in the pile of mud in the pit, so some heavy equipment must be used to move the mud, "Samindo investor Ahmad Zaki Natsir said in a press release received by Investor Daily in Jakarta on Tuesday (23/1).
The increase of overburden removal was obtained from several coal mining services projects of the company, such as increasing the production of overburden from the PT Kideco Jaya Aung mine by 2.5%. Coal mining projects at PT Bayan Resources Tbk (BYAN) have also started to contribute 2.3 million bcm last year. "The donation of the Bayan project is still small due to the construction of a new project starting in mid-2017," he said.
Zaki previously said that Samindo will increase its capital expenditure (capex) target by 343 percent to US $ 13.8 million in 2018. The fund will be used to purchase heavy equipment. The increase in capital expenditure is part of the company's strategy to increase overburden removal and coal production in accordance with the company's agreement with the client.