United Tractors to sell Berau Coal to Timah

PT United Tractors is set to sell 60 percent stake in coal mining firm PT Berau Coal to the state-owned tin mining firm PT Timah, the Tempo daily newspaper said.

The paper quoted United Tractors director Boentoro as saying that the company had received a proposal from Timah.

He said that the divestment was currently being processed, and BNP Paribas had been appointed as independent appraisal.

He declined to disclose the expected value of the transaction.

Timah has earlier expressed interest in purchasing Berau Coal as part of its expansion program.

Boentoro said that United Tractors would sell its stake in mining contractor PT Parma Persada Nusantara through an initial public offering.

Berau coal which operates coal mining in Bearu regency in East Kalimantan with annual production of 6 million tons per annum.

Berau coal is 60 percent owned by United Tractors while another local company PT Amadian Tritunggal and Japanese trading powerhouse Nissho Iwai hold 30 percent and 10 percent, respectively.(*)