UT ramping up revenue from coal business

IDX-listed heavy-equipment distributor and coal mining firm PT United Tractors (UT) Tbk has said that the company would ramp up revenues from its coal mining business in coming years which currently contributed about 10 percent of the company?s total revenue.

The company booked revenue of Rp30 trillion last year of which half of them raised from its heavy equipment business and 40 percent contributed by the company's mining contractor Pamapersada Nusantara.

?We hope to produce about 10 million tonnes of coal in the next three years,? said Gidion Hasan, director of United Tractor?s business development who also leads the company?s mining division.

Gidion said that UT?s new coal mining companies were expected to start commercial operation in 2012 or 2013.

The UT currently has 8 mining companies with the total mineable reserves of between 254 million tonnes and 369 million tonnes.

As of November this year, cumulative coal production from UT reached 3.98 million tonnes, higher compared to the same period last year of 2.63 million tonnes.

UT earlier said that its coal production during November period reached 457,000 tonnes from its two coal mines PT Prima Multi Mineral (PMM), formerly PT Dasa Eka Jasatama (DEJ) and PT Tuah Turangga Agung (TTA) of which PMM contributed 347,000 tonnes, and the remaining 110,000 tonnes came from TTA mine. TTA mine started first coal production at the end of 2010. (adianto)