UT in talks with banks to finance coal mine acquisition, development

IDX-listed heavy equipment distributor and coal firm PT United Tractors Tbk. (UT) is in talks with a number of foreign and local banks over loans to finance acquisition and development of its recently acquired mine, a company official said.

Investor relations officer Sara K. Loebis told Petromindo.Com on Friday that negotiation is expected to be completed end of the month.

She did not disclose the name of the banks. She said the amount of the loans the company was seeking is expected to be adequate to cover the acquisition costs of US$115 million and the development costs of the mine.

UT has recently acquired Central Kalimantan's coal miner PT Tuah Turangga Agung for $115.6 million.

The mine has 40 million tons of mineable reserves of with production expected to be started end of the year. The mine is planned to be able to produce at peak rate of 3 million tonnes per annum in 2010. (denny)