Berau Coal's sales increases 13% in Jan-Oct 03

Publicly listed heavy equipment supplier PT United Tractors (UNTR) said Wednesday its subsidiary PT Berau Coal had sold around 6.5 million tons of coal in the Jan-Oct 2003 period, up 13 percent from the same period last year of 5.7 million tons.

UNTR said however its revenue did not follow the increase in sales volume because Berau Coal had sold low quality products in the period.

?Berau Coal?s revenue rose by one percent to Rp1.106 billion (US=Rp8,480) in the Jan-Oct 2003 period from last year?s Rp1.091 billion,? UNTR said.

Berau Coal operates a mining concession in Berau Regency, East Kalimantan. Coal production is currently coming from three areas namely Lati, Binungan and Sambarata, which have estimated coal reserves of 2.6 billion tons, combined.

According to UNTR, Berau exports around 70 percent of its product to Taiwan, Hong Kong, Thailand and Japan, while the remaining 30 percent goes to domestic customers.

UNTR has a 60 percent stake in Berau Coal, while PT Armadian Tritungggal and Nissho Iwai Corp hold 30 percent and 10 percent, respectively.

Berau Coal expects that its coal output will reach nearly 8 million tons this year, higher from last year?s 6.9 million tons. The company has set a target to produce around 8.5 million tons in 2004. (robert)