PT United Tractors Tbk (UNTR), the heavy equipment, mining contracting and coal mining businesses handling subsidiary of Astra International, disclosed diversification plans of re-acquiring mineral and energy mines, gold and coal, amidst sluggish sales of heavy equipment in the domestic market, Katadata Indonesia reported citing the company’s newly-appointed President Director, Fransiscus Kesuma.
Reportedly, the company is currently conducting due diligence studies of several mines. However, the company spokesman declined to comment on the location of the potential acquisition targets. Also, he was reluctant to mention about any funds set aside to finance the acquisition.
“We are open to acquire mines that have already been made and if there is a green field potential, especially those that are still around the Asmin Mine and surrounding areas,” Franciscus stated, adding that the company eyes both thermal and coking coalmines.
He further revealed that heavy equipment sales will possibly fall this year in response to the weakening coal prices. Consequently, the company targets to sell only 4,100 units in CY19 whereas last year it had sold 4,879 units of heavy equipment of various brands like Komatsu, Bomag, Tadano.
According to Iwan Hardiantoro, a director of the company, “United Tractors has prepared a capital expenditure budget worth US$ 700 million to US$ 800 million. Most of the funds are for maintenance of heavy equipment through their subsidiary engaged in mining contracting, PT Pamapersada Nusantara.”
Additionally, the news portal reported that United Tractors’ coal sales volume dropped slightly to 2.54 million tons (MnT) in the first quarter of this year (1QCY19), from 2.59 MnT in the same period last year.
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