PT United Tractors Tbk, Indonesia’s biggest heavy-equipment distributor, it would acquire another coal mine by the end of the month as it seeks to boost revenue from its mining business.
The company was finalizing the purchase of a mine in Kalimantan with estimated reserves of 50 million tons of mid-quality coal. Production is expected to start next year, with the company setting an initial production target of around 500,000 tons annually.
United Tractors raised IDR6.1 trillion in a share sale last month and said it planned to use 45 percent of the proceeds to acquire coal mines. Many companies with interests in coal have been expanding their operations recently to capitalize on rising global coal prices and to meet demand
from fast-growing economies such as China and India.
In the first quarter, United’s consolidated revenue surged 45 percent from the same period last year to Rp 12.65 trillion, and profit before tax rose 38 percent to Rp 2.23 trillion. Construction machinery accounted for 54.1 percent of its revenue, while mining for other companies contributed 35.4 percent during the first quarter. Mining from its own operations was 10.5 percent.
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