Dharma Henwa obtains US$141m contract

IDX-listed integrate mining and energy services provider PT Dharma Henwa Tbk has been assigned as the mining development contractor of a lead zinc project in North Sumatra owned by affiliate PT Dairi Prima.

The company said in a statement to the Indonesia Stock Exchange that the contract was part of agreements signed by the two companies, Bakrie Construction, and China Nonferrous Metal Industry?s Foreign Enginerring & Construction Co Ltd (NFC) on April 17. Under the agreement, NFC will provide technical supervision for the work carried out by Dharma Henwa considering the experience of the former in such project. President Director of Dharma Henwa Wahjudi Martiono was quoted by Investor Daily as saying that the two-year contract obtained by his company was worth US$141 million.

Aside from the mining development contract, other agreements signed include engineering, procurement and construction contract between Dairi Prima and NFC, engineering contract between Dairi Prima and NFC, supply agreement between Dairi Prima and NFC, and surface construction contract between Dairi Prima, NFC, and PT Bakrie Construction, the statement said.

Dharma Henwa, Dairi Prima, Bakrie Construction are part of the Bakrie Group. The statement further said that NFC will also develop infrastructure and facilities to process 1 million tons of ores per year at the concession operated by Dairi Prima. The facilities are expected to be completed within 42 months, or end 2017, paving the way for mining activity to start in the following year.

Editing by Reiner Simanjuntak