Bumi to end contract with Thiess

IDX-listed coal mining giant PT Bumi Resources Tbk said it has reached agreement with PT Thiess Contractors Indonesia to end coal mining services contract, Kontan reported on Saturday.

?Basically, this is an agreement to end (the contract). The clauses have been agreed and will be effective in the near future,? Bumi Corporate Secretary and Director, Dileep Srivastava said.

The termination of the contract will end the lengthy dispute between South Kalimantan coal miner PT Arumin Indonesia, a subsidiary of Bumi, and Thiess, a unit of Australia?s Leighton Holdings, in which the latter company has accused the former of failing to make certain payments, while the former accused the latter of poor production performance which lead to Arutmin failing to meet target, Kontan said.

Srivastava declined to disclose details of the clauses, but said that the company is now seeking for local contractor to replace the role of Thiess. ?Contractor local is expected to provide benefit particularly in terms of more efficient cost,? he said. (*)