Adaro, Pama agree to extend coal mining contract

South Kalimantan coal mining firm PT.Adaro Indonesia has agreed to extend coal mining contract with top mining contractor PT.Pamapersada Nusantara for another five years.

United Tractors (UT) Corporate Secretary Sara Loebis told Petromindo.com on Wednesday that the new contract would include 65 million BCM per annum of over burden removal, extracting 18.5 million tonnes per annum of coal and hauling. UT is parent company of Pamapersada.

Current contract will expire end of 2008, Loebis said.

Loebis said the deal is expected to be sealed within the next few months, pending agreement on several issues.

Separately, Adaro Energy?s Corporate Secretary Andre Mamuaya told reporters that Adaro the extension deal will be signed in October this year, with new price of US$18.5 per tonne for 2009. In 2008, Adaro pays 16.5 per tonne to Pamapersada. Adaro Energy is parent company of Adaro Indonesia.

Apart from Pamapersada, Adaro Energy also employs its subsidiary PT.Saptaindra Sejati as mining contractor at Adaro Indonesia.(denny)