United Tractors on hunt for Australian opportunities after Ravenswood gold mine pursuit

United Tractors operates in construction machinery and mining contracting.

Indonesian mining firm United Tractors is believed to be scanning the Australian market for more opportunities in the resources sector after it recently pursued the Ravenswood gold mine.

Ravenswood was up for sale by its owners, including EMR Capital, for a price believed to be about $2bn.

However, the asset was retained by its owners following the sale process run by UBS and Azure Capital.

As earlier reported, United Tractors and the Australian listed Regis Resources were the final two bidders in the competition.

Regis Resources put forward a low-ball offer, and it was ruled out as a result after the final bid date. However, it is now known that while United Tractors was the last party standing, it opted not to put in any offer at all in the final hour. But sources suggest it remains on the hunt for other opportunities in Australia.

The company is a subsidiary of PT Astra International and operates in construction machinery, mining contracting, mining, the construction industry and energy. It mines coal and gold, and in the contest for Ravenswood, it was advised by Standard Chartered.

A deal for United Tractors to buy Ravenswood would have come after earlier investments in the Australian nickel and gold mining industry.

The Ravenswood mine, 130km south of Townsville in Queensland’s Charters Towers region, generates about 200,000 ounces of gold annually.

EMR Capital led a consortium that purchased Ravenswood in 2020 from Resolute Mining for up to $300m.

It has substantially grown its production since, through the heavy investment needed for the mine’s life extension to at least 15 years from 2022.

Its other owner is Singapore-based Golden Energy Resources, which also has ties to Indonesia.