Throughout this year, PT Bayan Resources Tbk (BYAN) has allocated capital expenditure (capex) of US$ 220 million to US$ 250 million for a number of purposes. Director and Corporate Secretary of Bayan Resources Jenny Quantero explained, this capex will be used for various mine expansion projects. Launching the 2022 report, there are a number of activities at the mine that BYAN will carry out throughout this year. For example, exploration activities continued in the Tabang Project with drilling concentrated in the Tiwa Abadi, Brian Anjat Sentosa and Bara Tabang concessions. During 2022, a total of 246 drill holes totaling 26,136 meters have been completed in the concession. Drilling will continue into 2023.
In addition, his party is also continuing exploration in the West FKP deposit which has the potential to extend the life of the TSA/FKP project. Over the past year a total of 390 drill holes totaling 25,704 meters were completed in the area. Drilling will continue into 2023. Not only that, Bayan will also start drilling in the GBP Block 2 concession in 2022 with a total of 225 drill holes and 20,936 meters. BYAN is also working to reactivate GBP Block 2 in 2023. "Capex is also used, including for the continuation of the construction of a new 101 km coal hauling road to the Mahakam River and a new barge loading facility on the Mahakam River," he explained in a public expose, Thursday (27/4).
In addition, this year's capex will be allocated for expanding throughput capacity at Balikpapan Coal Terminal (BCT) and various other smaller scale projects as well as various replacements for mobile coal handling equipment. Jenny explained that last year BYAN spent US$ 207.9 million in capital expenditures or did not reach the target budget set at US$ 267 million. He explained that the realization of capital expenditure was not achieved according to the budget due to the slow progress of the Tabang coal hauling road and overland conveyor facilities, mainly due to high rainfall throughout the first half of 2022.
Bayan Resources Director Alastair McLeod explained that part of this year's capital expenditure was allocated to complete the 101 km haul road from the Tabang Project to the Mahakam River. Re-quoting the 2022 Annual Report, it was noted that the construction progress of the 101 km haul road was estimated to have been completed 84% physically. However, due to the rainy season weather last year resulted in several delays from the predetermined schedule. "So this capex is used to complete the project. We plan to complete the haul road to the Mahakam River this year," he said on the same occasion. But unfortunately, when asked about the realization of capital expenditure in the first quarter of 2023, BYAN's management was not willing to answer. McLead said that the public should wait for the announcement to be made later.
