UT acquires more coal mines

IDX-listed heavy equipment distributor and miner PT United Tractors Tbk (UT) continues to expand coal mining portfolio through acquisition of two greenfield concessions in North Barito regency, Central Kalimantan.

The company will acquire 60 percent stake at PT Duta Sejahtera (DS) and Duta Nurcahya (DN) though a Conditional Sale and Purchase Agreement that was signed on July 8, 2011.

Both DS and DN have coal concession covering total area of around 10,000 hectares.

According to Corporate secretary Sara Loebis as quoted by Investor Daily, the mines has reserves of between 25-100 million tonnes with CV ranging from 6,000 to 6,300 kcal/kg. Production from the mines is targeted to start in 2013 with initial output of 500,000 tonnes in the first year, she said.

Earlier this month, the company has completed acquisition of 20 percent stake of South Sumatra coal mining concession PT Bukit Enim Energi for US$21 million. The company has also doubled its stake to 60 percent at two cola mines in Central Kalimantan PT Asmin Bara Bronang and PT Asmin Bara Jaan.

UT operates several producing coal mine in Kalimantan with production target of 4 million tonnes this year. (alex)