Cipta Kridatama signs $187m contract to mine iron ore

PT Cipta Kridatama (CK), a subsidiary of IDX-listed PT ABM Investama Tbk, announced on Monday the signing of a service contract worth US$187 million with PT Adidaya Tangguh.

The contract is the first to be signed by CK in the mineral sector, the firm said in a statement. It was signed on April 16, 2015 by CK?s President Director Irfan Setiaputra.

Works covered by the contract include providing mining service such as overburden removal, iron ore hauling and leasing heavy equipment for Adidaya Tangguh?s mines on Taliabu island, North Maluku province. During the contract period through 2023, CK targets to remove 13 million bcm of top soil and overburden, lease equipment for the production of 21 million tons of iron ore on a 100 ha mining site. The iron ore will be hauled to the processing plant on Taliabu island, North Maluku.

?The new contract with PT Adidaya Tangguh is a pioneer contract of CK in non-coal sector, particularly in iron ore sector. This represents a strategic step for the firm to maintain a positive performance amid the slowdown in the coal market and opens a huge opportunity to provide service for more clients in other mineral sector,? Irfan said.

Editing by Johannes Simbolon