UT says C. Kalimantan coal mine to start production H2 2009

IDX-listed heavy equipment distributor and coal miner PT. United Tractors Tbk (UT) said its coal mine Tuah Turangga Agung (TTA) in Kapuas Tengah regency, Central Kalimantan, is currently under construction and would start production in the second half of 2009.

UT Finance Director Gidion Hasan said the mine would have installed capacity of 3 million tonnes per year.

Earlier, UT said production from the mine would start early 2009.

Gidion said currently TTA is constructing infrastructures such as 42-km haul road, crushing plant and jetty port. ?50 percent of the infrastructure is already completed,? he said.

He added that the jetty port would be able to berth 180-270 meters barges.

He said that a number of potential offtakers have expressed interest to buy TTA coal. He did not give detail.

UT bought TTA in January 2008 for US$115.6 million

A UT official earlier said that coal from the mine would have CV of around 6,300KCAL/kg.

Gidion added that UT is currently conducting a due diligence on a greenfield coal mine in Central Kalimantan. (denny/bernard)