BUMI Allocates $2.26 Billion for Coal and Non-Coal Investment Read more about Tons - The Indonesia Today

Giant coal miner PT Bumi Resources Tbk (BUMI), controlled by Bakrie Group, allocates US$2.26 billion funds for investing in coal and non-coal until 2013.
The company allocates US$1.25 billion for funding coal expansion. It targets to produce 113 million tons of coal by 2013, a 88% increase from estimated 2010 production of 60 million tons.

It said PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia, Bumi's subsidiaries, will boost their coal production up to 100 million by 2013. Bumi allocates US$1.1 billion for KPC and Arutmin. It said the coal expansion is expected to contribute Ebitda of US$800 million per year.

Bumi also allocates US$150 million to boost coal production of other units - PT Fajar Bumi Sakti (FBS) and PT Pendopo Energi Batubara (PEB) - to 13 million tons and expects to contribute Ebitda of US$100 million per annum.

As of January 2011, Bumi's coal reserves totaled 2.9 billion tons, surged 107% from 1.4 billion tons in September 2007.

Bumi also allocates US$1.01 billion funds for its unit PT Bumi Resources Minerals Tbk (BRMS) to invest in minerals mine up to 2013. BRMS will develop black tin and zinc mines in Dairi, North Sumatera with investment of US$211 million, to develop gold and cooper in Gorontalo and Palu, Sulawesi with investment of US$500 million and to develop iron ore mine in Mauritania, West Africa which cost around US$300 million.

Dileep Srivastava, Bumi's director, told Investor Daily that the company is expected to book net profit of US$285 million, doubled from US$190.4 million in 2009, and revenue of US$4.27 billion, increased 33.4% compared to US$3.2 billion in 2009.