UT says new C. Kalimantan coal unit to produce 1-1.5m tons

By Thomas Sembiring

Petromindo|Khalsa

IDX-listed heavy equipment and mining firm PT United Tractors Tbk (UT) said that its newly acquired Central Kalimantan coal firm PT Suprabari Mapindo Mineral (SMM) is projected to be able to produce between 1 million to 1.5 million tons of coal next year.

UT President Director Gideon Hasan said last week that maiden production, expected later this year, will be around 300,000 tons.

Gideon, however, said that SMM will be able to start production at the end of this year if UT could complete the acquisition of the coal firm in the first semester of this year.

He said that the company is currently waiting for government approval of the SMM acquisition. ?Changes in shareholders require government approval. We?re waiting for it,? he said.

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