UT seeks to acquire nickel producer
Thursday, September 18 2014 - 01:10 AM WIB
IDX-listed heavy equipment company PT United Tractors Tbk, which also operates coal mines, is seeking to acquire a domestic medium-scale nickel mining firm as a diversification strategy amid the lingering weak coal market.
President Director Djoko Pranoto said on Wednesday that his company was also currently conducting thorough assessment of nickel smelter technology as once it acquires a nickel mine the company would have to develop a domestic smelter following the government?s ban on the export of raw mineral commodities.
No further details were provided for the planned nickel acquisition.
Regarding the company?s coal mining business, UT Vice President Director Gidion Hasan said that given the lingering weak coal market, the company will maintain capital expenditure for next year at around US$300 million, about the same with this year?s allocation.
He said that the spending would mostly be allocated for replacement of heavy equipment of coal contractor subsidiary PT Pamapersada Nusantara. He said that Pamapersada would get an allocation of about $250 million.
UT, which distributes Komatsu brand heavy equipment, operates four coal mines run by subsidiaries including PT Prima Multi Mineral, PT Asmin Bara Bronang, PT Turangga Agung, and PT Duta Nurcahya.
Editing by Reiner Simanjuntak