BIB, SIS agree to amend mining contract

By Edgar Subroto

South Kalimantan coal miner PT Borneo Indobara (BIB) has amended its coal mining and coal hauling contract with its main contractor PT Saptaindra Sejati (SIS) in BIB?s Batulaki block, an industry source told Petromindo.com.

Under the amended contract, SIS will only undertake overburden removal with total volume of 28 million BCM, and hauling activity based on the original contract, in which SIS have to produce 10 million tons of coal under a 5-year contract starting 2009.

Both parties agreed to adjust the contract based on Mining Law No.4/2009, the source said. The new amended contract will expire in August 2014 or upon the completion of the contracted of 28 million BCM, whichever comes first.

SIS is also the main contractor at another BIB?s block called Kusan project.

Editing by Reiner Simanjuntak