United Tractors Expands into Non-Coal Segment

PT United Tractors Tbk (UNTR) is expanding its presence in the non-coal mineral mining sector through a series of strategic transactions by its associate and subsidiaries. The move includes the acquisition of minority stakes in two High Pressure Acid Leach (HPAL) smelters by Nickel Industries Limited (NIC), announced on June 24, 2026, as well as the provision of an intra-group loan.

According to Investasi, Nickel Industries, in which UNTR holds a 20.14% stake, has signed an agreement to acquire a 17.5% stake in PT Teluk Metal Industry (TMI) at the Indonesia Morowali Industrial Park (IMIP) for USD 169 million. The acquisition will be funded through internal cash and an additional debt option from Shanghai Decent, NIC's largest shareholder.

In addition to TMI, Nickel Industries has also agreed to acquire a 36% stake in PT Chengsheng New Energy for USD 241.6 million through the monetization of an 18% interest in two mining companies under the Sampala Project, without the use of cash. Chengsheng New Energy is projected to contribute 10,208 tonnes of Mixed Hydroxide Precipitate (MHP) nickel production annually by mid-2027, while TMI is expected to contribute 6,775 tonnes of MHP nickel production per year by no later than September 2027.

In another business line, two UNTR subsidiaries—PT Danusa Tambang Nusantara (DTN) and PT Agincourt Resources (PTAR)—signed a revolving loan facility agreement of up to USD 70 million on June 22, 2026. The loan, which carries an interest rate of Term SOFR +1.15% per annum, is valid until June 16, 2029, to support PTAR's general funding requirements.

Management said the intra-group loan was provided because it offers a more optimal return for the company than conventional banking instruments currently available.

"From a business perspective, it is more beneficial for DTN to provide this loan to PTAR than to keep its cash deposits in banks at the current deposit rates," United Tractors Corporate Secretary Ari Setiyawan said.

Capital market analysts said the series of transactions reinforces the Astra Group company's commitment to expanding its green portfolio and reducing its dependence on coal amid the energy transition.

"Meanwhile, the funding injection into Agincourt Resources demonstrates efforts to optimize gold production at the Martabe Mine, which has long been a key contributor to UNTR's non-coal business," Nafan Aji Gusta, Senior Market Analyst at Mirae Asset Sekuritas, said on Friday (June 26).

Although the U.S. dollar-denominated transactions expose the company to exchange rate fluctuations against the domestic currency, the company's financial position is considered to remain solid due to its low debt ratio.

"However, UNTR can at least implement a hedging strategy," Nafan Aji Gusta added.

Regarding the company's share performance, investors are still advised to monitor the progress of the expansion before making long-term investment decisions.

"For now, Nafan recommends a wait-and-see approach on UNTR shares," Nafan Aji Gusta said.

Meanwhile, a separate analysis by another securities firm maintained a positive outlook on the company's fair value, setting a target price of IDR 29,100 per share in a research report dated June 9, 2026. The projection is based on a 2026 price-to-book value (PBV) ratio of 1.01 times, while noting that external risks remain tied to global commodity price movements and the realization of production quotas.

Source: https://www.koranmanado.co.id/united-tractors-ekspansi-mineral-non-batubara

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