UT expects to complete negotiation of new coal mines acquisition by year end

Indonesia-listed heavy equipment distributor and miner PT United Tractors Tbk (UT) is expecting to complete negotiation to acquire two coal mine concessions in North Barito regency, Central Kalimantan before year end, the company?s official told Petromindo.Com.

On July 8, 2011, UT has signed a Conditional Sale and Purchase Agreement to acquire 60 percent stake at PT Duta Sejahtera (DS) and Duta Nurcahya (DN). Both DS and DN have coal concession covering total area of around 10,000 hectares.

The official said that UT will first complete negotiation with DS and will be followed by DN. ?But, we are expecting to complete the purchase of both mines before the end of this year,? the official said.

At the present, UT is still conducting due diligence thoroughly. According to the official DS mine is still in exploration stage, and DN mine is already in production stage, but he did not disclose the coal production figure.

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