Aneka Tambang Spends 31.79% of Capex Budget

PT Aneka Tambang Tbk (ANTM), state-owned enterprise in the mining sector, spent Rp 1.5 trillion for capital expenditure, 37.8 percent of total capex budget for 2011 of Rp 3.96 trillion, according to company directors. Of the amount, Rp 962.17 billion was used for development investment and Rp 372.13 billion for other investments. The remaining Rp 111.46 billion are for regular investment needs.

Alwin Syah Lubis, President Director of Antam, said the company raised its capital spending this year by 30 percent from Rp 3 trillion to Rp 3.95 trillion. The increase was due to higher capex for development investment which comprise bulk of requirement, which is about Rp 3.2 trillion.

According to Alwin, most of the capex allocation was spent to cover for the requirements of chemical grade alumina Tayan and smelter grade alumina Mempawah in West Kalimantan. It was also used for the modernization and optimization of ferronickel plant in Pomalaa, South Sulawesi.

As of the first semester of 2011, Aneka Tambang recorded net profit of Rp 996.71 billion, up 31.79 percent from Rp 756.30 billion in the same period last year (year-on-year / YOY). Improved corporate profitability was mainly driven by sales of ferronickel. Ferronickel production was up 6 percent YOY to 9,838 tons of nickel in ferronickel (TNi). Sales volume in the period reached 9,072 tons.

PT Timah Tbk (TINS), state-owned enterprise in mining, in the first six months of 2011 has utilized 30 percent or about Rp 420 billion of total capex budget this year amounting to Rp 1.4 trillion. The company will optimize capex in the second half for the construction of bucket wheel dredges (BWD).