PT United Tractors Tbk (UNTR) aims to spend US$500 million capital expenditure next year as a routine investment.
Corporate Secretary Sara K. Loebis said the company will use the internally generated cash flow to finance the capex in 2012. The figure is out of the requirement for coal acquisition.
According to her, United Tractors is scouting two coal miners in Central Kalimantan and East Kalimantan. The due diligence has been initiated within the next 4 months.
"We have coal reserves of 300 million tons-350 million tons. Hence, we need another 150 million tons-200 million tons to reach 500 million tons," she said.
Disclosure: No position at the stock mentioned above.
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