UT close to acquire more Kalimantan producing coal mines

JSX-listed heavy equipment distributor PT.United Tractors (UT) plans to add its coal-mining portfolio by acquiring two more producing mines.

Investor Relations Officer Sara Loebis told Petromindo.Com on Wednesday that the company planned to close the acquisition of two producing coalmines in Kalimantan by the end of the year. She did not give any detail except that the mines are CCoW holders.

?The acquisition will immediately give positive impact to the company as the mines are already producing,? she said, adding that each of the mines is producing around 3 million tonnes per annum and each had mineable reserves between 38-40 MT.

Company Corporate Secretary Tjandrawati Waas said on Tuesday that the company will spend around US$200 million to acquire the two mines. She also added that mines are producing coal with CV of at least 5,800 Kcal/kg.

Loebis said the two mines were short-listed from several mines it had conducted due diligence on.

Earlier this year UT, through its mining contracting unit PT.Pamapersada Nusantara had acquired a company which has several coal mining concession which produce high CV coal in South Kalimantan for $34 million. The mines are targeted to produce 3 million tonnes of coal this year. (denny)