Pama?s Q1 production negatively affected by incidents, climate

JSX-listed heavy equipment distributor PT.United Tractors Tbk. reported on Monday that its mining contracting unit Pamapersada Nusantara (Pama), went through the year?s first quarter with a few setbacks in production, caused by operation incidents in Adaro, Indominco and Kaltim Prima Coal project sites, as well as unfavorable climate.

The company did not give detail about the incidents.

Additional effort has been made to catch up the target, leading Pama to produce 11.2 million ton of coal in the first quarter of 2007, or 22% higher than the 9.2 million delivered in the same period last year, said the company. Pama produced 42.5 million tonnes of coal for its clients in 2006.

Overburden removal work however, was still heavily slowed down and only managed to record 72.1 million bcm or down 9.4% from last year?s same period overburden removal of 79.6 million bcm. The company removed 340 million bcm of overburden last year.

Pama?s revenue for this first quarter-achieved Rp 1.81 trillion (US$200 million), including sales of about 600,000 ton of coal from the recently acquired coal concession. Gross profit margin was slightly down from 15% to 14%, because of the lower overburden removal. Increased in operating expense also pressed down the operating profit margin from 13.4% to 11%. (alex)