Astra International strengthens the coal business

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Astra International strengthens the coal business

Tuesday, 02 March 2010 08:28

JAKARTA: PT Astra International Tbk strengthen the coal business through subsidiary PT United Tractors Tbk (UT) with a target of two mines in Central Kalimantan.
President Director of Astra International Prijono Sugiarto said the company's capital expenditures budget for Rp7, 5-Rp8 trillion trillion, up 50% compared with 2009 spending of $ Rp5 trillion.
This year, the company controlled by Jardine Cycle & Carriage was also opened up opportunities penetrated infrastructure business.

Prijono add it immediately complete the acquisition of coal mining companies that own land around the mining site of PT Tuah Turangga Great, UT business units engaged in coal mining.

"We've signed a purchase and sale agreement while the [conditional sales and purchase agreement]," he said after the general meeting extraordinary shareholders (EGM), yesterday.

Company's target production of coal mines in two companies owned by UT to increase this year. During 2009, the extraction of coal increased 15%, or reach 68 million tons, from the previous 59 million tons, with sales reaching 2 million tons.

Production of PT Dasa Services Ekatama, other mining business unit from UT, targeted to increase to 3 million tons per year from the current 2.4 million tons. On the other hand, production is projected to be Tuah Turangga 1 million tons, from 750,000 tons of production now.

Contacted separately, UT Corporate Secretary of Sara K. Loebis just said management was still negotiating seriously with the two owners of mining rights (KP). Both KP is located in Central Kalimantan, adjacent to the mine site Turangga Tuah.

Investor Relations UT Setyawan said Ari KP acquisition to support long-term business corporation. Production levels will target a minimum of 3 million-4 million tons per year. However, he did not specify the mine in question.

In comparison, PT Bumi Resources Tbk, which is the producer and the largest exporter of coal to produce as much as the national 58 million tons during 2009. PT Adaro Energy Tbk, the largest coal producer second, producing 40.6 million tons.

Astra EGM yesterday approved the appointment of Prijono as the new president, replacing the late Michael D. Ruslim. Since January 21, Prijono task was president.

Previously, Prijono Astra director positions since May 2001. In Astra, he was director in charge for several brands of vehicles al Daihatsu, Isuzu, BMW, Peugeot, Nissan UD, PT Gaya Motor, Astra Honda Sales, PT Astra Honda Motor, PT Astra Otoparts Tbk.

Prijono explained Rp8 trillion shopping needs will be met from internal cash because the company has a healthy balance sheet.