UT?s DEJ reports increasing coal sales

JSX-listed heavy equipment distributor PT.United Tractors (UT) said on Wednesday that its South Kalimantan coal-mining unit PT.Dasa Eka Jasatama (DEJ) had sold 2.56 million tonnes of coal in the first 9 months of this year.

DEJ sales in the third quarter was 1.074 million tonnes versus 836,000 tonnes in the previous period.

UT, which completed acquisition DEJ in January 2007, expects production for this year to be around 3 million tonnes.

UT Investor Relations Sara Loebis told Petromindo.Com that DEJ’s coal production are sold to Noble Group and Glencore AG through UT’s coal trading arm British Virgin Island-based Scenic Worldwide Ltd. under term contracts.

Under the contracts, which were effective in June 2007, DEJ will ship 300,000 tonnes per month of coal to both traders. Contract with Glencore would end in June 2008, and contract with Noble would end at the end of 2009.

DEJ produces coal with CV value of around 6,800 Kcal/kg. (denny)