Darma Henwa signs mining services contract worth $1.8b

By Romel S. Gurky

IDX-listed coal mining services company PT Darma Henwa Tbk said that it had on February 25 signed an agreement to provide mining services at Satui and Mulia coal mines in South Kalimantan owned by PT Arutmin Indonesia.

The company said in a statement Monday that the contract is estimated to worth about US$1.8 billion.

As has been previously reported by this portal, a newly-established company called PT Cakrawala Langit Sejahtera (CLS) was appointed in November of last year as the new mining contractor for the Satui and Mulia coal mines by Arutmin after the latter ended its contract with PT Thiess Contractors Indonesia. Because CLS is a new company without any mining contractor experience, the company then handed over the project to Darma Henwa.

Darma Henwa said that with the signing of the February 25 agreement, the mining services agreement, technical assistance agreement, and equipment rental agreement with CLS becomes effective.

Editing by Reiner Simanjuntak