PT United Tractors Tbk (UNTR) will aggressively seek and purchase machineries for the mining contracting segment in order to maintain the volume of coals, following the end of the working contract with PT Adaro Energy Indonesia Tbk (ADRO). Until this day, ADRO is one of the customers that significantly brought in revenue for the company.

In the public expose treatise quoted Friday (16/9), Iwan Hadiantoro, Director of UNTR, claimed that the company had spent IDR 3.9 trillion of its capital expenditure until July 2022. “They were mostly spent on new machine in order to support the operational activities of the mining contracting segment,” he added.

According to Hadiantoro, the purchase of these new equipment will continue to take place until the realisation of the capital expenditure hit IDR 11.5 trillion at the end of this year.

Although UNTR will lose its contract with ADRO, it has secured extra volume of coal production and overburden removal from its existing customers as the coal price regains its strength.

Source: https://www.idnfinancials.com/news/44343/untr-aggressively-pursue-machine-mining-contracting