United Tractor to acquire a C. Kalimantan coal mine

Coal miner and heavy equipment distributor PT United Tractors Tbk (UNTR) says it expects to close a deal to buy a brown field coal mine in Central Kalimantan in March.

?We have finalized due diligence on the brown field,? UNTR president director Djoko Pranoto said on the sidelines of an event held by UNTR?s parent company, PT Astra International Tbk (ASII).

UNTR, through its subsidiaries PT Pamapersada Nusantara and PT Tuah Turangga Agung currently holds six concessions with an estimated 369 million tons of coal reserves in Kalimantan and Sumatra, and expects to add two more concessions this year.

Other than the brown field mine, UNTR is also assessing another green field in East Kalimantan.

?We hope to complete the deal for the green field before the end of the first half,? Djoko said. According to Djoko, the two mines contained coal with 6,000 to 6,300 kcal/kg.

United Tractors would finance the transaction with funds remaining from its rights issue in June, he said. (*)