Indonesia’s biggest seller of construction equipment PT United Tractors plans to spend USD 450 million in capital expenditure next year, mostly to buy more mines.

Mr Gideon Hasan director of PT United Tractors said that PT Pama Persada, United Tractors’ mining contracting unit, will spend about USD 400 million, half of which will come from external loans.

He said that United Tractors expects coal production and sales to reach 4.5 million tonnes in 2011. The average domestic price of coal will probably reach USD 90 per tonne next year.

Mr Hasan said that sales of heavy equipment will probably rise to 6,000 units in 2011 from an estimated 5,400 units this year.

(Sourced from Bloomberg)