Heavy equipment and gold mining service company, PT United Tractors Tbk (IDX: UNTR) targeting to sell Komatsu' heavy equipment around 1,700 units in this year, higher than last year about 1,400 units - Photo by the Company

JAKARTA (TheInsiderStories) – Heavy equipment and gold mining service company, PT United Tractors Tbk (IDX: UNTR) targeting to sell Komatsu’ heavy equipment around 1,700 units in this year, higher than last year about 1,400 units. The increased, said the spokeswoman, will be supported by the plantation and construction sectors amid the rising trend in the commodity prices.

In addition, said Sara K. Loebis, demand from the mining sector is also projected to grow driven by efforts to replace worn-out equipment. She adds, during the first 11 months of 2020, the mining firm had sold 1,481 units of heavy equipment.

The largest contribution came from the mining sector by 36 percent, followed by the construction sector by 34 percent, the forestry sector by 19 percent, and 11 percent from the agriculture sector. The sales was corrected by 47.9 percent compared to the sales volume in the same period last year of 2,843 units.

The company’ heavy equipment market share until November was 30 percent. As for gold, the issuer is targeting the sales volume could reach 340,000 troy ounces (oz), higher than the last year target in the range of 319,000 – 320,000 oz.

To note, in mid-August 2020 the miner has cut its target due to the operational restrictions of the Martabe gold mine amid the COVID-19 pandemic. Initially, the unit of PT Astra International Tbk (IDX: ASII), set a gold sales target of 360,000 oz, which is also lower than last year’ target of 400,000 oz.

Loebis stated, in this year, the issuer allocated a capital expenditure of US$290 million for its gold mining business segment, especially for processing plant development, tailing management, and operation. She explained, around 50 percent of the funds will be allocated to the mining contractor business segment for replacing obsolete heavy equipment.

United Tractors is a distributor of heavy equipment to the mining, construction, forestry and agriculture sectors, and a provider of mining contracting services to the coal sector in Indonesia. The company has three other segments focused on domestic coal production, gold mining and industrial and commercial construction.

The publicly listed firm is 59.5 percent owned by Astra and the remaining hold by public and traded on the Indonesia Stock Exchange.

US$1: Rp14,000

Written by Editorial Staff, Email: theinsiderstories@gmail.com