UT sees delay in C. Kalimantan coal mine production start

IDX-listed heavy equipment and mining firm PT.United Tractors (UT) pushed back production start of its Central Kalimantan coal mining project by several months to the fourth quarter of this year, a company official said on Friday.

Investor Relations Ari Setiawan said the delay at Tuah Turangga Agung (TTA) mine was due to delay in construction works of the mine?s infrastructure.

TTA, which is located in Kapuas Tengah regency, will start production at 40-50,000 tonnes per month, ramping up to 1 million tonnes (MT) in 2010, and 2MT in 2011 and to the installed capacity of 3MT in 2012, he said.

He said currently the company has completed more than 50 percent of hauling road and jetty construction.

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

Earlier, UT CFO Gidion Hasan said that the company would construct 42-km haul road, crushing plant and jetty port which would be able to berth 180-270 meters barges.

UT bought TTA in January 2008 for US$115.6 million

Ari also said that UT is eyeing to acquire one coal mine which is located near TTA. ?We?re currently conducting due diligence,? he said. He hinted that the mine would have reserves of 20MT with CV of around 5,800Kcal/kg. (denny)