PT United Tractors Tbk (UNTR) seeks to maintain the performance of its mining services business amid the downward trend in global coal prices.
Just for the record, UNTR runs a mining service business through its subsidiary PT Pamapersada Nusantara (Pama).As of May 2020,Pama’sRome overburdenoroverburden volumefell 11.08% (yoy) to 349.9 million bank cubic meters (bcm).
The Pama coal production decreased 9.25% (yoy) to the level of 46.1 million tons until last May.
United Tractors Corporate Secretary Sara K. Loebis admitted that his party was not yet worried as there was a decline in the operational performance of the mining services business.UNTR will also try to adjust its operational performance targets to the expectations of customers.
It is hoped that the performance of UNTR’s mining services will remain stable amid uncertain coal prices.”We also continue to monitor the development of the next coal market, so it is still dynamic,” she said, Friday (7/17).
In order to maintain Pama’s operational performance, the company will maintain productivity as a mining contractor effectively and efficiently.
Sara added, UNTR revised the value ofcapital expenditure(capex) or capital expenditure this year from US $ 450 million to around US $ 230 million – US $ 250 million.Of this amount, 60% is aimed at developing the mining services business.
Later, Pama will use most of the capital expenditure allocation this year to replace heavy equipment that is outdated.”The rest is capital expenditure for maintenance ormaintenance,” continued Sara.