United Tractors to divest shares in Berau Coal early next year

State owned PT United Tractors expects to complete the divestment of its 60 percent share in East Kalimantan-based coal mining company PT Berau Coal early next year, Neraca economic daily reported on Monday.

United Tractors? president Hagianto Kumala said in Jakarta on Saturday that the divestment plan, which was formally unveiled last week, was made as part of the company?s program to focus its activities on its core business as the provider of heavy equipment in the country.

?In addition, the divestment of the company?s 60 percent ownership in PT Berau is also aimed at raising fresh funds to repay debts,? he was quoted as saying. He added that PT BNP Paribas has been appointed to act as a financial advisor in the divestment plan.

PT Berau, which operates thousands of hectares of coal mining concessions in East Kalimantan, produces about 4.9 million tons of coal this year. In 2006, the company?s coal production is estimated to reach about 13 million tons.

In addition to supplying local power companies, PT Berau Coal also exports its coal products to Japan, Hong Kong and Taiwan. (*)