Delta Dunia Makmur 's unit bags US$400m-$500m contract from Berau
Wednesday, January 5 2011 - 01:41 AM WIB
Mining service contractor PT Bukit Makmur Mandiri Utama, a subsidiary of PT Delta Dunia Makmur, has been awarded with a mining service contract worth US$400 million-$500 million by coal mining firm PT Berau Coal.
The firm received the five-year contract from Berau on Dec. 27, 2010 after emerging as winner in a tender, Delta Dunia said in a filing to the Indonesia Stock Exchange.
Under the contract, which is scheduled to start in March this year, Bukit Makmur will handle mining activities at Pit East 2 owned by Berau. It is targeted to remove 226.8 million bank cubic meters (bcm) of overburden and produce 20.7 million tons of coal.
"The value of the contract is estimated at $400 million-$500 million and will be adjusted to the transportation distance throughout the contract period," it said.
The contract adds to the existing contracts between both companies which are valid through 2018, it said. (alex)