UT to start coal production from newly acquired mine end of the year

Indonesian Stock Exchange (IDX)-listed heavy equipment distributor and coal miner PT United Tractors Tbk (UT) expects its newly acquired Central Kalimantan coal mine will start production late 2008.

Investor Relations Officer Sara Loebis told Petromindo.Com on Friday that the mine is expected to start production at 200,000 tonnes, ramping up to 1 million tonnes in 2009 and 3 million tonnes in 2010. ?The mine?s designed production capacity will be 3MTPA,? she said.

UT will construct 40-km haul road from the mine to river port, she said, adding that coal produced from the mine will have CV of 6,300 Kcal/kg.

UT announced on Wednesday acquisition of 93 percent shares of coal miner PT Tuah Turangga Agung (TTA) for US$115.6 million.

TTA indirectly holds exploitation license (KP) for thirty years for an area of approximately 5,000 hectares in Kapuas Tengah regency with mineable reserves of 40 million tonnes.(denny)