Garda Tujuh secures $75m coal sale contract

By Romel S. Gurky

IDX-listed coal miner PT Garda Tujuh Buana Tbk reported that it has entered into a coal sales and purchase contract with one of the International Coal Traders from Middle East worth at US$75 million.

Garda Tujuh, in the statement to the IDX, said that the company agreed to sell about 10 million tons of coal to buyer from its mine at Bunyu island, East Kalimantan. The statement did not elaborate the buyer.

The statement said that the contracted quantity shall be mined by the buyer would be 3 million tons before 31st December in 2014 and 3.5 million tons before the year?s end in 2015. The remaining of 3.5 million tons should be mined before the 31st December 2016.

Garda Tujuh agrees to extend the above said three years contract period to another one year.

"This extension can be availed of by the buyer only once during the total contract tenure of three years. In case buyer fails to lift the yearly quantity even during the extended one year period, seller shall have the full right to confiscate the payment made by the buyer," the statement said.

Editing by Adianto P. Simamora