UT allocates 80% capex for mining contractor unit

IDX-listed heavy equipment and coal mining firm PT United Tractors Tbk (UT) has allocated US$250 million for capital expenditure next year, 80 percent of which to be distributed to its coal mining contractor subsidiary PT Pamapersada Nusantara, Kontan reported on Saturday.

?The capital expenditure is for mining contractor business, Pamapersada,? UT Corporate Secretary Sara K. Loebis said.

The paper said that Pamapersada plans to revitalize its mining equipment fleet, despite the current coal mining industry downturn, which has forced many miners to cut down production as part of cost-saving measures. ?It?s difficult to get new clients,? Sara said.

According to the paper, mining contractor business accounted for 61.03 percent UT?s nine-month 2015 revenue of Rp 23.37 trillion.

Meanwhile, UT?s indirect subsidiary PT Tuah Turangga Agung is expected to see coal sales volume to rise by 30.43 percent next year to 6 million tons from the estimated 4.6 million tons for this year. (*)