United Tractors May Raise Funds to Acquire Coal Mine (Update1)
2008-06-11 03:04 (New York)
(Adds United Tractors mine purchase in final paragraph.)
By Wahyudi Soeriaatmadja and Leony Aurora
June 11 (Bloomberg) -- PT United Tractors, Indonesia's
biggest seller of construction equipment, may take a loan or
sell shares to acquire a coal mine in the country's part of
Borneo and expand its mining operations.
UBS AG is one of the banks helping to study the financing
options, Gidion Hasan, finance director at United Tractors, said
in a telephone interview today. He declined to say how much
money the company wants. United Tractors hasn't hired any
arranger for the planned fund-raising.
``They may need to raise between $240 million and $330
million,'' assuming they buy two coal mines, said Felicia A.
Barus, an analyst at PT Danareksa Sekuritas in Jakarta.
``Anything related to coal is good and would increase the
company's value. Coal prices still see good upside potential.''
United Tractors, which has coal concessions and a mining
unit, is benefiting from high prices. Power-station coal at
Australia's Newcastle port, a benchmark for Asia, rose to a
record $158.53 a metric ton in the week ended June 6, according
to the globalCOAL NEWC Index.
``Business is growing as coal production rises, providing
more work'' for mining contractors, Hasan said. ``We're also
looking at several coal mine prospects.''
PT Pamapersada Nusantara, the company's mining contractor
unit, is in negotiations to extend a contract to extract coal
for PT Adaro Energy, Indonesia's second-largest producer of the
fuel, for another five years, Hasan said. The present agreement
will expire this year.
Production Increase
Pamapersada may raise the so-called base production at
Adaro's mines to 18 million tons from 16 million tons, said
Andre Mamuaya, a director at Adaro. Actual output, with a range
of 20 percent above and below the base production, will be
decided annually, he said.
United Tractors won a $1.1 billion contract to mine coal
for Straits Asia Resources Ltd. through 2013, Corporate
Secretary Sara Loebis said on May 19. Pamapersada plans to boost
the volume of coal mined at the Jembayan mine in East Kalimantan
to 10 million tons a year in 2012 from 4.5 million tons this
year, Loebis said.
The Jakarta-based company may buy a coal-mining company in
Kalimantan this year for as much as $200 million, Investor Daily
Indonesia reported on June 2, citing President Djoko Pranoto.
Hasan didn't confirm the report.
United Tractors said on Jan. 9 that it agreed to pay $115.6
million to buy Borneo-based PT Tuah Turangga Agung, which has
reserves of about 40 million tons of coal.
Related news:
For top commodity news: {CTOP <GO>}
For news on United Tractors: {UNTR IJ <Equity> CN <Go>}
--Editors: Jane Lee, Ryan Woo.
To contact the reporters on this story:
Wahyudi Soeriaatmadja in Jakarta at +62-21-3435-3026 or
[EMAIL PROTECTED];
Leony Aurora in Jakarta at +62-21-3435-3023 or
[EMAIL PROTECTED]
To contact the editors responsible for this story:
Tony Jordan at +65-6212-1150 or [EMAIL PROTECTED]
[TAGINFO]
UNTR IJ <Equity> CN
569760Z IJ <Equity> CN
----- Original Message ----
From: Adam Rajsha <[EMAIL PROTECTED]>
To: obrolan-bandar <obrolan-bandar@yahoogroups.com>
Sent: Wednesday, June 11, 2008 3:52:15 PM
Subject: [obrolan-bandar] UNTR masuk dalam jarak tembak
dor... dor.... (peluru angin, lama ngokangnya.. ) ;)
