ABM secures US$396 million mining contract
Tuesday, December 18 2012 - 11:54 AM WIB
IDX-listed PT ABM Investama Tbk. through its subsidiary PT Cipta Kridatama that operates in mining contractor service secured a US$396 million contract for mining services with PT Tunas Muda Jaya for the next five years.
The agreement was signed by Cipta Kridatama Director Kemal Djamil Siregar and PT Tunas Muda Jaya President Director Poncowolo.
With this new contract, Cipta Kridatama will work on Tunas Muda Jaya?s green field mining, with the scope of works among others being top soil removal, overburden removal, and equipment rental in the concession area located in East Kalimantan Province.
Tunas Muda Jaya is a subsidiary of PT Mulia Andalan Mandiri, which is part of PT Permata Energy Resources business group and a private company with mining license (IUP) to operate coal mining production in Batu Sopang Sub-district, Pasir Regency, East Kalimantan Province, which produces high cv thermal coal.
Cipta Kridatama Director Kemal Djamil said, ?The contract with Tunas Muda Jaya is a significant achievement for Cipta Kridatama, not only from the contract value and high thermal coal with sustainable mining operation level; but also from the potential long-term business that can be developed in the future, considering our cooperation started from green field work.?
?Along with Cipta Kridatama?s experiences, supported by professional experts and modern equipment, we are optimistic that we can work well according to the agreement,? added Kemal.
Work that will cover the next five years to 2017 targets an increase in 2013 of around 20 million BCM of overburden removal, or around 14 percent from the targeted overburden removal of 140 million BCM in 2013.
Editing by Adianto P. Simamora