UT sees declining coal sales this year

By Thomas Sembiring

IDX-listed heavy equipment and coal mining company PT United Tractors Tbk (UT) said that coal sales volume this year could drop by 50 percent if commodity price remains at current low level.

?We estimate that if price (of coal) remains at current level, sales (of coal) could probably drop by 50 percent,? said newly-appointed President Director of the company, Gidion Hasan on Tuesday.

Last year, the company booked a coal sales volume of 6 million tons, he said, adding that the coal mining sector is expected to remain weak this year.

The company operates four coal mines including Prima Multi Mineral in South Kalimantan and Asmin, Tuah Turangga Agung, and Duta Nurcahya, located in Central Kalimantan.

Despite the general downturn in the mining sector, UT allocated US$350-400 million for capital expenditure this year. Its mining services subsidiary PT Pamapersada Nusantara gets about 90 percent of the total capex mainly to be used for heavy equipment investment.

Editing by Reiner Simanjuntak