UT hopes gold mine to start production early 2018

By Brigida Ernestina Elu Wea

IDX-listed heavy equipment and mining company PT United Tractors Tbk (UT) hopes its gold mine in Sumbawa, East Nusa Tenggara, will start production in early 2018.

Company Corporate Secretary Ari Setyawan said that exploration works are currently in progress at the mine.

?We allocate US$10 million for the exploration. We could not yet disclose the reserves and the planned production volume as exploration is still in progress,? he told Petromindo.com Thursday.

UT through subsidiary PT Pamapersada Nusantara acquired in February of last year a 75.5 percent stake in PT Sumbawa Jutaraya, which owns the gold mine, for US$2.57 million. Prior to the acquisition, Sumbawa is majority owned by United Gold Resources Pte Ltd, and 5 percent owned by PT Sumba Mas Persada.

The company has said that the acquisition of the gold mining firm forms part of diversification strategy amid the lingering coal industry downturn. UT also operates coal mines, aside from providing mining services, and being the sole distributor of Komatsu heavy equipment in the country.

Editing by Reiner Simanjuntak