UT prepares infrastructure development in C. Kalimantan coal mine

By Thomas Sembiring

Petromindo

IDX-listed heavy equipment and mining firm PT United Tractors Tbk (UT) is making preparations to start infrastructure development at its newly acquired coal mine in Central Kalimantan, allocating capital expenditure of about US$50 million.

UT President Director Gideon Hasan said on Thursday that the coal mine, run by indirect subsidiary PT Suprabari Mapanindo Mineral (SMM), is expected to start production later this year at a volume of around 200,000 tons. He said that production next year is targeted to reach around 1 million tons.

UT through subsidiary PT Tuah Turangga Agung (TTA) signed on October 11 of last year conditional sale and purchase agreements (CSPAs) to acquire up to 80.1 percent shares in SMM from Vasse Holdings Pte, PT Cipta Olah Alam Lestari, and individuals Salman Ernawan and Eddy Winata.

Editing by Reiner Simanjuntak