UT cuts 2009 coal production target on softening demand

IDX-listed heavy equipment distributor and miner PT.United Tractors (UT) will slash production target from its South Kalimantan coal mining unit PT.Dasa Eka Jasatama (DEJ) to 3 million tonnes (MT) from 3.8MT originally due to softening demand from customers.

UT Corporate Secretary Sara Loebis told Petromindo.Com on Wednesday that DEJ customers are either reducing volume or hold back delivery to latter date due to global economic crises.

Data from UT showed that first quarter 2009 coal sales from DEJ was 692,000 tonnes, down from last year?s same quarter sales of 1.045 MT.

DEJ sells its coal production to Noble Group and Glencore AG under term contract.

Sara, however, said coal production from UT?s mining contractor unit PT.Pamapersada Nusantara will be increased by 10 percent to 64-65MT this year from 59MT last year. ?Most of Pama?s customers are on expansion mode,? she said.

Pama is Indonesia?s largest mining services provider. The company?s existing clients include PT Adaro Indonesia, PT Indominco Mandiri, PT Kaltim Prima Coal, Tambang Batubara Bukit Asam, PT Multi Harapan Utama, and PT Kideco Jaya Agung. (denny)