United Tractors to start production from C. Kalimantan coal mine

Central Kalimantan coal miner PT Tuah Turangga Agung (TTA) will start production in late October this year, parent company IDX-listed heavy equipment distributor and miner PT United Tractors Tbk (UT) said on Thursday.

Corporate Secretary Sara Loebis told Petromindo.Com that construction period is almost completed and the mine will produce 40,000 tonnes until year-end. The first production would not be immediately sold and would be used as stockpile, she said.

Production will reach 1 million tonnes in 2010, ramping up to million in 2011 and to installed capacity of 3 million tonnes in 2012, she said.

All of TTA?s production, which will be high CV thermal coal, will go to export market, she said, adding that the company is now in negotiation with traders and end users such as power plants. She did not give detail.

TTA, which is mine is located in Kapuas Tengah regency, has constructed 42-km haul road, crushing plant and jetty port which would be able to berth barges with capacity of 8,000 tonnes.

UT bought TTA in January 2008 for US$115.6 million. (denny)