UT eyeing two more coal mining firms

Publicly listed PT United Tractors (UT) plans to take over two more coal mining companies in order to be able to further benefit from the surge in the coal prices in the international market, Kontan reported on Tuesday.

The company's director Djoko Pranoto said in Jakarta on Monday that United Tractors was currently in talks to acquire two coal miners, one in East Kalimantan and another in South Kalimantan.

"We are still conducting a due diligence process on the two companies," he said. He, however, declined to name the companies.

When contacted by Petromindo.Com, UT?s Corporate Secretary Sara Loebis said that the two coal miners are KP holders, each with a reserve of at least 40-50 million tons.

The due diligence is expected to be completed in the end of June, she said, adding that after completing due diligence, UT's management will negotiate acquisiton prices with the owners of the mining firms.

"The result (of the negotiation) is expected to come in the second semester of the year," she said.

In January 2008, UT acquired coal miner PT Tuah Turangga Agung (TTA) for US$115.6 million. The mine is expected to start production at 200,000 tons this year and ramp up the output to 1 million tons in 2009 and 3 million tons in 2010. ?The mine?s designed production capacity will be 3 MTPA,? UT said.

In January 2007, UT through its mining contractor subsidiary PT Pamapersada Nusantara acquired South Kalimantan coal miner PT Dasa Jasa Ekatama, which produced 3.56 million tonnes of coal in 2007. (denny)