Bayan?s unit signs coal sales agreement with Philippine firm

By Romel S. Gurky

PT Bara Tabang, a subsidiary of IDX-listed coal mining firm PT Bayan Resources Tbk, signed on Friday an agreement to supply 1.95 million tons of coal to Philippine firm SMC Consolidated Power Corporation (SMPC).

The agreement is valid for six years starting from 2017 with an option for SMPC to extend the contract for another five years. The contract depends on whether SMPC will achieve its financial closure by Dec. 31, 2015, Bayan said in a statement on Friday.

SMPC is part of Philippine conglomerate San Miguel Corporation with businesses ranging from real estate, foods and beverages, power generation, infrastructure, oil refinery and marketing, banking and telecommunication.

Bayan owns 90 percent of Bara Tabang, which holds the IUP mining permit for the 3,015 ha Tabang coal project located in Tenggarong, Kutai Kertanegara regency, East Kalimantan.

Editing by Johannes Simbolon