PT United Tractors (UNTR) has set its coking coal production target at 1.5 MnT in CY19 intending an increase of 86% Y-o-Y, as market demand from steel industry is projected to remain strong, a company executive said.
United Tractors, majorly owned by Astra International group, produced 807,000 MT of coking coal last year; Kontan reported citing Sara Lubis, head of investors’ relation of the company as saying on Sunday.
Sara said that a stable global price of coking coal has been the main reason for the company to set a high target this year. However, Sara declined to disclose the intended price of the coking coal, which the company wants to attain in the global market.
The company would sell most of its coking coal to Japan, as per reports.
Coking coal also known as metallurgical coal, is commonly used as an important ingredient for steel production.
United Tractors bought control of PT Suprabari Mapanindo Mineral, a coking coal producer in 2017, Kontan reported without providing the value of the acquisition. Suprabari is located in central Kalimantan province in Kalimantan Island.
United Tractors’ coking coal target is included in its overall coal production target for this year. The company said earlier that its overall coal production target was set at between 125-127 MnT this year, as per reports.
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