UT to increase coal output from S. Kalimantan mine

IDX-listed heavy equipment distributor and miner PT.United Tractors (UT) said on Friday that its South Kalimantan coal mining unit PT.Dasa Eka Jasatama (DEJ) would produce 3.5 million tonnes of coal next year from 2.5 million this year.

UT?s Investor Relations Ari Setiawan told Petromindo.com that this year?s production will be lower than target of 3.7-3.8 million tonnes due to softening demands.

Ari also said that UT is currently conducting due diligence for two greenfield coal mines in Central Kalimantan, which is expected to be completed in October this year.

UT is looking for mine that has medium calorific value of (min) 5,800 kcal/kg (ADB), reserves around 20-40 million tonnes and can produce 3 million tonnes per annum of coal, he added. (denny)