UNTR eyes coal mine operation in Mongolia

IDX-listed heavy equipment distributor and coal miner PT United Tractors Tbk (UNTR), a subsidiary of Indonesian?s major business conglomerate PT Astra International Tbk (ASII) plans to expand into Mongolia to take the advantage of the Central Asian nation?s massive coal reserves, Investor Daily reported on Monday.

United Tractor?s president director Djoko Pranoto said last week that with its large coal reserves, Mongolia offered growth opportunities for the company. Located between Russia and China, Mongolia is a quite strategic location for the production of coal for exports, especially to Russia and China, among the world?s largest coal buyers, he said.

He, however, did not unveil when the company would realize its investment plan in Mongolia. Djoko said that at present, UNTR would focus its expansion plan on the Indonesian mining sector.

UNTR, which operates as the distributor of heavy equipment mostly used for mining operations, has expanded into coal mining operations since 2007 through its subsidiaries PT Prima Multi Mineral and Tuah Turangga Agung.

Through its subsidiaries, at present United Tractor has operated nine coal mine concessions, with total reserves of about 424 million tons. In the first quarter of this year, the company produced 1.2 million tons of coal . (*)