UT wins $1 billion mining contract<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
A unit of publicly listed heavy equipment company PT United
\nTractors (UT) has won a 10-year coal exploration contract worth
\nover US$1 billion from the country's second largest coal
\nproducer, PT Kaltim Prima Coal (KPC).<\/p>\n
UT said in a press statement on Tuesday that the contract was
\ngranted to its mining contractor subsidiary PT Pamapersada
\nNusantara (Pama) to mine coal at a KPC site in Bendili, East
\nKalimantan.<\/p>\n
"Pama ... has just signed a new contract of coal exploration
\nfor KPC on April 8," said the company in the statement.<\/p>\n
KPC, which is owned by publicly listed energy firm PT Bumi
\nResources, plans to produce around 25 million tons of thermal
\ncoal this year, up from 16.5 million last year.<\/p>\n
Pama currently holds similar exploration contracts with PT
\nAdaro Indonesia -- the country's largest coal producer -- state-
\nowned PT Tambang Batubara Bukit Asam, PT Indominco Mandiri, PT
\nMulti Harapan Utama and PT Kideco Jaya Agung.<\/p>\n
The mining contractor produced 27.7 million tons of contracted
\ncoal last year.<\/p>\n
Pama plans to buy equipment from UT to fulfill the KPC
\ncontract, and the purchase is expected to help increase UT's
\nsales by 10 percent this year.<\/p>\n
To support the operation, UT will provide Pama with
\nmaintenance services, a new workshop and a new warehouse at the
\nBendili site.<\/p>\n
Following the announcement of the contract, UT shares rose by
\n8.1 percent, or Rp 125, to a record high of Rp 1,675. Automotive
\ngiant PT Astra International owns 49 percent of UT.<\/p>\n
Despite a slight decline in sales, UT recorded a net profit of
\nRp 342 billion (US$40.2 million) last year, up from Rp 300
\nbillion in 2002. During the same period, the company's sales
\ndropped to Rp 6.87 trillion from Rp 6.88 trillion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ut-wins-1-billion-mining-contract-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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