UT?s coal unit seeks new buyers

Indonesia-listed heavy equipment distributor and coal miner PT United Tractors Tbk said on Monday that its Central Kalimantan coal mine unit PT Agung Bara Prima (ABP) plans to start coal commercial production in H2 2012 and is seeking new prospective buyers.

The company?s corporate secretary Sara Loebis told Petromindo.Com that as of today ABP has yet to secure buyers for its coal.

The company is expected to produce around 500,000 tonnes of coal in the first year, Sara said. The coal has a CV of around 6,300kcal/kg (ADB). BAP has around 10 million tonnes of mineable reserves. ABP is located around 40 kilometers from river port, she said, adding that the coal from ABP will be loaded at its parent company PT Tuah Turangga Agung (TTA)?s river port.

UT through its coal-mining subsidiary TTA now holds 100 percent stake in ABP as last month TTA acquired the remainder 40 percent stake in PT Agung Bara Prima (ABP) for US$10.6 million.

ABP is a coal mining firm with concession located in Kapuas Tengah regency, Central Kalimantan, which covers an area of 1,271 hectare. ABP obtained IUP operation and production from the Regent on July 20, 2011, UT said. (denny)