Samindo Distributes US $ 10 million for Dump Trucks

JAKARTA - PT Samindo Resources Tbk., A provider of coal mining services, added 10 units of land and coal transport trucks or dump trucks with an investment of US $ 10 million.

Samindo Independent Director Ahmad Saleh said that with the addition of an operating facility in the form of 10 dump trucks, 143 units of the MYOH-coded stock fleet at present.

"Procurement of the truck is to anticipate the achievement of our targets so that we hope our target at the end of this year will be achieved," he said during the breaking fast together with the media on Friday (13/5).

He explained, the capital expenditure of US $ 10 million for the purchase of coal transport trucks had reached 56% of the total capital expenditure of MYOH this year at US $ 17.8 million.

A total of 10 dump trucks, each with a capacity of 100 tons, have started operating since early May 2019.

Samindo's capital expenditure in 2019 rose 28.2% compared to the previous year.

Management decided to increase the company's capital expenditure budget in 2019 to support the target achievement this year.

MYOH has started the process of purchasing heavy equipment since the beginning of this year. In March 2019, a total of five units of dump trucks had already been operational, while the rest had only started operations in early May. The impact of these additions can be seen from the volume of MYOH cover rock which reached an increase of 1.2% in the first quarter.

In addition to dump trucks, the remainder of the capital expenditure will be allocated to purchase supporting equipment such as slurry pumps and water tanks. These supporting tools are expected to increase productivity in the overburden removal activities.

The company allocates US $ 14.5 million of total capital expenditure to purchase heavy equipment in cover rock removal activities. This activity received the largest share of capital expenditure considering its contribution to consolidated income was more than 60%.

The overburden stripping target is 58.1 million bank cubic meters (bcm) or an increase of 6.4% compared to last year.

"For the past 2 years we have actively added heavy equipment. In addition to meeting the targets set, the addition is also intended to open up opportunities for us to obtain new contracts, "said Ahmad Zaki Natsir, Head of Investor Relations at Samindo Resources.