UT targets to produce 4.5Mt of coal this year

Indonesia-listed heavy equipment distributor and miner PT United Tractors Tbk (UT) said that it would produce 4-4.5 million tonnes of coal from its two mines in 2011, increasing significantly from last year's production of 2.58 million.

UT's corporate secretary Sara Loebis told Petromindo.com on Tuesday that its South Kalimantan coal miner PT Dasa Eka Jasatama (DEJ) will produce around 3 million tonnes of coal with 1-1.5 million tonnes expected to come from its Central Kalimantan coal miner PT Tuah Turangga Agung (TTA).

UT directly sells its coal from TTA mine to Japanese market, she said. Meanwhile, for DEJ mine, which is owned by UT?s unit PT Pamapersada Nusantara, the coal is sold through its existing offtakers under long term contract.

As of March 2011, DEJ and TTA have produced 731,000 tonnes and 271,000 tonnes of coal, respectively.

Sara also said that other UT?s coal mine in Central Kalimantan PT Agung Bara Prima (ABP) is expected to start coal production in 2012. ?Currently, we (UT) conduct infrastructure building in the mine,? she said.

She did not give details about production plan from ABP mine. TTA has completed acquisition of 60 percent shares of PT Agung Bara Prima (ABP) on July 15, 2010.

ABP is a coal mining firm with concession located in Kapuas Tengah regency.

UT also closes to acquire more coal mines in Central Kalimantan, Sara added. ?Currently, we finalize to acquire two coal mines in Central Kalimantan,? We expect to deal within next 1-2 months," she said.

She said that UT hopes to acquire both mines, which is still greenfield mines, but it will depend on the negotiation. (denny)