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Coal Mining Indonesia United Tractor UNTR

Indonesia’s UNTR raises 2024 coal targets

Indonesian coal producer and mining services provider United Tractors (UNTR) is aiming to raise output at its own mine, as well as production under its mining services contracts, with the increase aided by higher production targets by its clients.

UNTR’s mining services subsidiary Pamapersada Nusantara is expecting coal production and overburden removal to grow by 4-5pc from a year earlier in 2024 to 136mn t and 1.16bn bank cubic metres (bcm) respectively from 2023’s 130mn t of coal produced and 1.1bn bcm of overburden removed, the company said.

UNTR’s Tuah Turangga Agung mine in central Kalimantan aims to increase production to 12mn t this year from 11mn t in 2023.

To support the increased production targets, the company has earmarked 21 trillion rupiah ($1.34bn) for capital expenditure, of which Rp18 trillion will be allocated to the mining and coal services segment. This will be used for maintenance and replacement of obsolete equipment in the company’s fleet of heavy machinery, as well as the development of mining infrastructure and ancillary services.

UNTR’s heavy equipment sales target this year was cut by 25pc from the previous year to 3,800-4000 units. The lower target was because of the fulfilment of backlogged orders, it said, as well as a slowdown in demand for heavy equipment in the mining sector.

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