Geo Energy?s coal unit signs mining services agreement with BUMA
Tuesday, June 30 2015 - 03:46 AM WIB
SGX-listed Geo Energy Resources Limited said that its coal mining subsidiary PT Sungai Danau Jaya (SDJ) had on June 29 entered into an agreement for the provision of overburden removal and coal hauling services with PT Bukit Makmur Mandiri Utama (BUMA).
SDJ holds a coal mining permit, giving it the exclusive right to mine, process and sell coal from the concession area located at the Sub-District of Angsana and Sungai Loban, Tanah Bumbu Regency, South Kalimantan.
Geo Energy said in a statement Monday that pursuant to the agreement, BUMA will provide SDJ with overburden removal and coal hauling services at the mining area.
In accordance with the agreement, between 2015 and 2023, BUMA shall provide, in aggregate, overburden removal services of approximately 131 million bank cubic meters and coal haulin services of 43 million tons, with an agreed upon annual production volume, the statement explained.
The term of the agreement will be for the entire life of the mine or until all of the coal reserves have been fully produced and/or extracted from the mining area, it added.
?Barring unforeseen circumstances and subject to execution risks, the agreement is expected to have a positive impact on the net tangible assets per share and earnings per share of the (Geo Energy) group for the current financial year ending December 31, 2015,?the company said.
Editing by Reiner Simanjuntak