United Tractors Strengthens Mineral Mining Sector
- 2023-07-07
- Posted by: Widyadhana Mufida
- Categories: Commodities, News
PT United Tractors Tbk (UNTR) plans to strengthen its mineral mining sector. Not only that, UNTR will also reduce the portion of its coal sector. This step is in line with UNTR’s commitment to achieve Net Zero Emissions (NZE) by 2050.
“In 2023, our target is that the contribution between related coal and non-related coal will reach 50% each,” said United Tractors Director Iwan Hadiantoro at Menara Astra (05/07/2023).
Reported by invest.kontan.co.id, the decline in the coal sector will be carried out slowly by UNTR. This is because the coal sector is still the main contributor to UNTR’s cashflow, which is around 70%.
In order to achieve this target, Iwan said that UNTR would focus on the mineral mining sector. In addition, UNTR will also develop the new renewable energy sector (EBT) for short and long term. The EBT sector consists of the hydro power plant business, mini hydro projects, and solar power projects.
“We will not invest in coal-related assets. The two main segments that we will develop are mineral mining and renewable energy,” he stated.
To enlarge its portfolio, UNTR has conducted due diligence with various mineral mining companies. This is done with companies in the country and abroad.
For information, UNTR is preparing a capital expenditure (capex) of US$ 1.2 billion. Around USD 900 million will be allocated for mining services, such as purchasing new equipment. Then, around USD 150 million will be allocated for the gold mining sector. Meanwhile, USD 50 million is used for the construction sector. Until the first quarter of 2023, UNTR has absorbed a capex of USD 325 million.