Update--UT acquires S. Sumatra coal mine

(Adds: Details on BEE acquisition value, reserves and production)-- IDX-listed heavy equipments distributor and miner PT United Tractors Tbk (UT) reported on Wednesday that its unit PT Pamapersada Nusantara has completed acquisition of minority stake at a South Sumatra coal miner and is in the process of increasing stake at two other coal mines located in Central Kalimantan.

The company said that Pama on July 4, 2011 has completed acquisition of 20 percent shares of PT Bukit Enim Energy (BEE). The company did not disclose acquisition price. BEE is the owner of a coal concession located in Muara Enim.

Investor Daily quoted UT?s CFO Gideon Hasan as saying that the company paid US$21 million for 20 percent stake at BEE, which has mineable reserves of 110 million tonnes with CV ranges from 4,500-6,000 kcal/kg.

Another UT official said that Pama will become the mine?s contractor and production is expected to start in 2 years with initial output of 500,000 tonnes.

Pama is also in the process of increasing its shares to 60 percent from 30 percent currently at PT Asmin Bara Bronang (ABB) and PT Asmin Bara Jaan (ABJ), both have coal mines in Murung Raya and Kapuas regencies.

UT said in May 2011 that Pama paid $40.1 million and Rp.75 billion for the acquisition of the first 30 percent stake at ABB and ABJ.(alex)