Borneo Indo signs mining service, equipment lease contracts with Putra Perkasa
Saturday, February 28 2015 - 03:18 AM WIB
IDX-listed coal mining firm PT Dian Swastatika Sentosa Tbk said that its subsidiary PT Borneo Indo Bara has signed a contract with mining services company PT Putra Perkasa Abadi (PPA) for the Girimulya coal project in Tanah Bambu Regency, South Kalimantan.
Dian said in a financial report released Friday that the mining service contract was signed on January 26 of this yearfor a period until November 10, 2019 or the date on which the contractor has fulfilled the obligation to carry out overburden removal of 30,000,000 bank cubic meters and coal exposed of 10,000,000 tons, whichever comes first. Terms and conditions are stipulated in the agreement.
Dian said that Borneo Indo also entered into a rental agreement with PPA on January 26, under which Borneo rent equipment from PPA to conduct mining activitiy specifically that is not implemented by mining service company in Girimulya project. This agreement is valid until November 10, 2019.
Borneo operates four coal blocks in Tanah Bambu including block Kusan and Girimulya, block Sebamban, block Batulaki, and block Pasopati. The mines form a concession with combined acreage of 24,100 hectares, with estimated coal reserves of 620.4 million tons, and resources of 1.58 billion tons.
Editing by Reiner Simanjuntak