Samindo Resources is a prominent investment holding corporation and also a public listed company in Indonesia, engaged in integrated coal mining services industry. As an integrated coal mining service company, we deliver the service that can provide solutions in every stage of coal mining operation.
The scope of Samindo Resources business includes four main activities in an integrated coal mining process. The company owns the majority of shares in four subsidiaries and operates two mining concessions in the province of East Kalimantan.
Samindo Resources shares are owned by various leading entities. Our goal is to create shareholder value in the long run by ensuring that we always stride for better performance.
Good Corporate Governance (GCG) is a reference for companies in running their daily operations to ensure that their operations are well manage. In line with the increased activity undertaken by PT Samindo Resources Tbk, the application of GCG principles is also increasing.
The practice of Corporate Social Responsibility (CSR) has the primary purpose of ensuring that the social interests of various stakeholder groups of Samindo Resources can be fulfilled appropriately and proportionately, especially for people living around the Company’s working environments.
PT Samindo Resources Tbk (the company), a coal mining coal provider in Indonesia, prepares capital expenditure (capex) funds of USD13.8 million for 2018. The figure has jumped 343 percent compared to its capital expenditure in 2017.
The increase in capital expenditure funds is nothing but a preparation in order to respond to the increase in targets charged by clients in 2018. As previously stated, the target ofoverburden production has increased by 13 percent, while coal production has increased by 10 percent.
"For the last two years Samindo's management has decided to postpone the purchase of heavy equipment due to the unfavorable condition of the coal industry," said Samindo Resources Investor Relations Zaki, in a written statement in Jakarta, Wednesday, December 13, 2017.
Most of the capital expenditure funds are allocated for the purchase of heavy equipment in the activity of overburden removal and coal production. Some heavy equipment that is targeted include dump trucks, excavators, cranes and pumps. Currently there are two active contracts namely contract with PT KIDECO Jaya Agung and contract with Gunung Bayan Pratama Coal.
Currently the process of ordering heavy equipment has been done and is expected in the first quarter of 2018 these tools can already be operated. Throughout 2017 coal prices are relatively stable compared with several years back and next year is predicted to remain stable.
"Therefore our clients begin to increase production, which of course positively impacts our annual target," Zaki said.
In terms of funding, most of the funding for 2018 capital expenditure funds uses internal cash. This is because Samindo has enough internal cash surplus. Up to the third quarter of 2017 cash amount reached USD26, 6 million. While the ratio of total debt is only about 21 percent of total current assets.