UT boosts production from newly acquired mine

JSX-listed heavy equipment distributor PT.United Tractors (UT) is ramping up production from its newly acquired South Kalimantan coal mining, a company official said on Tuesday.

PT. Dasa Jasa Ekatama (DEJ) is expected to produce 3 million tonnes of coal this year, up from 1.8 million tonnes last year, Sara Loebis, the company?s Investor Relations told Petromindo.Com.

Loebis said that in the coming year, DEJ?s output would be stabilized at around 3-3.5 MTPA.

DEJ?s coal production is entirely sold to traders such as Noble Group and Glencore AG with significant part of the production is exported to Taiwan, she said.

UT, through its mining contractor unit PT.Pama Persada bought DEJ which was partly owned by Malaysian firm Tenaga Nasional Bhd. for US$34 million earlier this year .

UT CEO Djoko Pranoto said in media reports that it was currently eyeing to acquire several coal mines, but did not elaborate further.

UT, through Pama, is currently operating common user coal facilities called rantau in South Kalimantan. Under the project builds common user infrastructures, coal processing facilities and boost coal loading capacity in Barito River that could be used by mining companies located nearby. (denny)