Gunungbayan asks Petrosea to cut down contract volume
Monday, January 7 2013 - 03:00 AM WIB
IDX-listed mining contractor PT Petrosea, a subsidiary of energy firm PT Indika Energy, has received a letter from East Kalimantan coal miner PT Gunungbayan Pratamacoal (GBP) requesting for volume and strip-ratio reduction under the extended mining service contract, which was signed in march 2012, due to the downward trend of coal prices.
Under the extended contract, Petrosea will provide extended services until December 31, 2017, increasing the overburden volume to 55 million BCM per year starting from 2012 until 2017.
In a report submitted to the Indonesian Stock Exchange on March 27th 2012, Petrosea stated that the contract for overburden removal at GBP?s coal mine in Muara Pahu district is worth a total of US$567 million.
The contract value comprises of $96 million worth remaining for the previous contract and additional $471 million for the extended contract period.
Editing by Er Audy Zandri