UT spends capex for mining contractor unit

By Brigida Ernestina Elu Wea

IDX-listed heavy equipment and mining company PT United Tractors Tbk (UT) in the first quarter of this year spent about US$30 million of its planned 2016 capital expenditure of $200 mililion-250 million.

UT President Director Gidion Hasan said on Monday that the first quarter capex was mostly allocated to subsidiary PT Pamapersada Nusantara particularly the mining contractor unit, as its new gold mine in West Nusa Tenggara was still at exploration stage.

Gidion said that Pamapersada spent most of the allocated capex for heavy equipment.

He added that UT has significantly cut down its capex plan from the normal $500 million level amid the lingering mining sector downturn particularly as coal miners suspended purchase of new heavy equipment, focusing instead on refurbishing existing units.

Editing by Reiner Simanjuntak