ABM secures coal sales deal for 15 mt
Wednesday, July 18 2012 - 02:17 AM WIB
IDX-listed PT ABM Investama Tbk, a listed integrated energy company focusing on resources, services and infrastructure ? through its subsidiary Reswara Minergi Hartama - has entered into a long-term sales and marketing agreement with Avra Commodities Pte Ltd
The deal for 15 million tons and a term running July 2012 to July 2017 was signed in Jakarta on July 13, 2012.
Under the deal, Reswara awarded Avra Commodities exclusive rights to market and sell TIA Compliant Coal (TCC), the branded thermal coal produced by Reswara subsidiary PT Tunas Inti Abadi (TIA), into Thailand, the Philippines, Taiwan, and to selected buyers in China.
With the contract in place, Avra Commodities, a wholly-owned subsidiary of multinational commodities trader and bulk shipper Avra Asia Pte Ltd, will extend its presence in the Indonesia thermal coal trade.
?Despite the challenging situation at the moment, this new deal is another confirmation of our commitment in achieving our target. This long-term agreement is beneficial for us, first because we?re integrating our business process better and creating significant cost efficiencies. Beyond that, it also assures business sustainability for the long run. The agreement also shows that the future of coal is still very promising,? ABM Investama President Director Andi Djajanegara said in the statement
As of second quarter 2012, Reswara had secured sale of 3.5 million tons of coal, or more than 80 percent of the 2012 coal sales target of 5.5 million tons.
?This is a business move that puts us into diverse markets in Asia and helps ensure market availability for our coal in the region. We believe the cooperation between Reswara and Avra Commodities will help both sides reach their own targets,? Reswara Minergi Hartama President Director Harry Asmar added.
Bob Kamandanu, President Director of PT Avra Indonesia and recently re-elected chairman of the Indonesian Coal Mining Association said that ?This deal represents a strategic partnership between two very strong and complementary counterparts. We see it as an exciting next step in a highly beneficial long-term relationship between the firms.?
Editing by Adianto P. Simamora