UT to increase capex next year on coal price recovery

IDX-listed heavy equipment and mining firm PT United Tractors Tbk (UT) plans to increase capital expenditure next year, much of which to finance its coal-related businesses, if the current coal price recovery continues, Bisnis Indonesia reported on Saturday.

?Our consolidated capex for this year is around US$200 million. Next year if the mining sector continues to be good as it is now, probably the (capex) budget can be increased by 15-20 percent,? said UT Finance Director Iwan Hadiantoro.

He said that about 80 percent of the capex will be used to finance coal-related businesses, with the remainder for the construction business.

Iwan said that the entire capex will be financed by internal funds. UT which distributes Komatsu brand heavy equipment including for the coal mining sector, also operates coal mines and provide coal mining services.(*)