ABM Investama subsidiary signs $7.3 million contract with MHU

By Tri Subhki R

PT Cipta Kridatama, a mining services contractor and subsidiary of PT ABM Investama Tbk, recently signed a US$7.3 million heavy equipment leasing contract with a coal mining company PT Multi Harapan Utama (MHU). The company will provide heavy equipment services for two MHU?s sub-blocks at Tanjung Laung and Loa Kulu, Kutai Kartanegara Regency, East Kalimantan.

?Amid the challenging condition of the coal mining industry, we are able to increase the utilization of our heavy equipment by signing a contract with MHU,? Cipta Kridatama?s President Director Yovie Priadi said in a statement Thursday.

In 2013, Cipta Kridatama signed some new contracts amounting to $839.27 million.

The contracts of the company?s coal mining services in 2013 covered the removal of overburden of up to 344 million bcm, the construction and maintenance of hauling roads and heavy equipment leasing.

MHU is a Coal Contract of Work (CCoW) holder that has medium to high grade coal deposit. The company owns three coal concessions, located in Busang, Sentuk and Gitan, East Kalimantan respectively with combined coal reserves of over 120 million tons.

Editing by Johannes Simbolon