Clients Increase Production, Samindo Resources Will Add Mining Heavy Equipment

Coal prices in 2018 are expected to be stable following commodity price stability in 2017. It encourages clients of PT Samindo Resources Tbk (MYOH), a coal mining contractor, to increase production.

The condition has a positive impact on MYOH next year. Therefore, MYOH management plans to buy heavy equipment and equipment for overburden removal and coal getting activities.

Both activities are mainly carried out at the Kideco mine after the renewal of mining services contracts.

"For the purchase of equipment and equipment, we allocate capital expenditure (capex) of about US $ 13.8 million for next year," said Ahmad Zaki, Investor Relations MYOH, in Jakarta, Tuesday (12/12/2017) ).

Ahmad argued, when compared with the capex MYOH in 2017 of US $ 3.12 million, then the amount of company capex budgeted for next year increased more than threefold.

"The surge in the allocated capex is one of our measures to anticipate the increase of target charged by the company's clients in 2018," said Ahmad.

Ahmad said, heavy equipment to be purchased by the company is dump trucks, excavators, cranes and various types of pumps. The Company has now ordered heavy equipment so it is expected to be operational in the first quarter of 2018.

"Most of the 2018 capex of the company comes from the company's internal cash. The reason is, the company currently has internal cash that is sufficient to finance the capital expenditure, "said Ahmad.