Garda Tujuh appoints VPR Laxmindo as mining contractor
Monday, January 2 2017 - 02:24 AM WIB
IDX-listed coal mining company PT Garda Tujuh Buana Tbk has awarded a three-year contract to coal mining contractor PT VPR Laxmindo with annual coal production target of 2 million tons per year.
Garda Tujuh owns coal mine on Bunyu Island in Bulungan Regency, East Kalimantan Province. The mine has been suspended since February of 2015, and the company plans to soon resume production activity in the wake of recent recovery in the price of the commodity.
Garda Tujuh said in a statement las week that VPR is an experienced coal mining contractor. The company said that there will be no capital expenditure for 2017 as mining activity will be carried out by the contractor. It added that production growth will depend on price development. No further details were provided.
Garda Tujuh previously said that it has obtained a one-year contract, with option for extension, to supply coal to Singapore-based Alata Overseas. The US$9 million worth of contract, signed in October of 2016, will be reviewed every three months, the company said.
The Bunyu Island coal mine has coal reserves of 72.8 million tons with calorific value of 5,100 kcal/kg.
Editing by Reiner Simanjuntak