Garda Tujuh bags coal sales contract from Alata
Thursday, October 20 2016 - 08:02 AM WIB
IDX-listed coal mining firm PT Garda Tujuh Buana Tbk said on Wednesday it has signed a contract to sell 2 million tons of coal for one year to Singapore-based Alata Overseas Pte Ltd.
The company said a statement that the coal price will be jointly determined every three-month looking at the market condition at the end of each quarter. No further details were provided about the coal sales contract.
Garda Tujuh reiterated that it has resumed production at its coal mine on Bunyu Island, Bulungan Regency, East Kalimantan Province, on October 13 with limited volume amid current rising trend in the price of the commodity. Production at the mine was suspended in February of last year.
?Full operation will be started in November once all equipment have arrived at the mine site,? the company said. ?Our focus now is operating the existing mine. In the long term, after two to three years, if market condition permits, we?re considering to acquire a new coal mine,? It added.
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