PT United Tractors, the heavy equipment distributor of PT Astra International, said that it has set aside between USD 700 Million to USD 800 Million as capital expenditure for CY19 as it plans to replace ageing equipments and boost its coal output, Kontan reported quoting Sara K Loebis, corporate secretary of the company as saying on Sunday.
“The bulk of the funds will be used for mining contract business,” Kontan reported citing Loebis.
The company is also known as distributor of construction machineries including Komatsu, Nissan Diesel, Scania, Bomag, and Valmet.
Loebis said that this year’s Capex was lower than that the company had set aside at between USD 800 Million to USD 850 Million for last year.
Last year, the company spent USD 650 Million to buy new heavy equipments to transport coal for its PT Pamapersada Nusantara, a coal mining unit of United Tractors, Loebis said.
Pamapersada has set a coal production target of 9 MnT for CY19, Loebis said. Last year, the company had estimated to produce 6.8 MnT of coal.
Pamapersada, 99% owned by United Tractors, is engaged in mining operation comprising of blasting, overburden removal, coal excavating, coal crushing and coal hauling, according to its website.
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