Coal producer PT Tambang Batubara Bukit Asam Tbk (PTBA) to allocate capital expenditure (capex) of Rp1.6 trillion in 2014, supporting the development of its projects mainly in power plants and regional expansion to Myanmar and Vietnam. The amount of capex is higher than Rp1.32 trillion in 2013.
The state-controlled company continues development of Banjarsari Power Plant with capacity 2x110 megawatt, which is expected to start operating commercially in the second half this year. Then it will make financial closing of Banko Tengah Power Plant with capacity 2x 620 megawatt by mid year.
Moreover, it will finalize the project of mine-mouth power plant Pranap with capacity 800 megawatt in Riau, which is under a joint venture with state utility firm PLN and Malaysian company.
It also expects to sign an agreement with local company for building power plant in Myanmar by end of April. Moreover, it is in a review to expand to Vietnam by building power plant with investment up to US$350 million and potential coal mining. This year, it decided to pay dividend of Rp1 trillion, of 55% of full year 2013 net profit. How will the company fund its projects this year ?