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United Tractors to acquire more coal, gold mines
United Tractors is conducting due diligence audits on a number of coal and gold mines as part of an acquisition process.
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Excavators operate at a mining site owned by PT Freeport Indonesia in Timika, Papua. (Courtesy of/PT Freeport Indonesia)
P
ublicly listed heavy equipment distributor PT United Tractors is planning to acquire more mines as part of its agenda to further strengthen its mining business.
The company’s newly appointed president director, Fransiscus Kesuma, said that as part of the expansion agenda, the company planned to acquire a number of coal and gold mines in the country.
“We plan to acquire a number of mines already in operation like the one we have in Martabe, North Sumatra, and greenfield mines,” Fransiscus said recently. He said the company preferred to acquire coal mines around its existing Asmin mine cluster in Central Kalimantan.
According to him, United Tractors was conducting due diligence audits on a number of coal and gold mines as part of the acquisition process.
For the coal mines, it was focusing on producing thermal coal, which is used for power and heat generation, and coking coal, which was usually used for steel production, he said recently.
He also said the company, a subsidiary of diversified conglomerate PT Astra International, would not use any of its 2019 capital expenditure for the acquisition as it would seek other funding options to finance the process.
United Tractors, a subsidiary of diversified conglomerate PT Astra International, is engaged in the distribution of heavy equipment and mining contracting services, coal mining and construction. The company booked a significant increase in revenue last year due to high coal prices.
