Arutmin agrees to mine under open cut method with Thiess

After prolonged negotiation and considering the high price of coal, South Kalimantan coal miner PT Arutmin Indonesia and PT Thiess Contractors Indonesia agreed to mine the open pit in full under the open cut method.

Both parties signed the join mine plan on June 21, 2011.

After the signed plan is completely adhered, there would be no coal left in the open pit using underground mining method in the future in respect of coal recovery.

Due to those circumstances, Arutmin?s management decided to write-off the costs related to Satui underground mining project amounting US$14.25 million.

On February 9, 2009, Arutmin and Thiess signed the Amended and Restated Operating Agreement Mining Services. Pits under the agreement were called Life of Mine (LOM) 2 pits, whereby the open pit was to be mined under open cut method.

However, the agreement did not cover the whole amount of coal under that pit and there were options to mine the rest of coal using underground mining method. (denny)