Gunungbayan extends Buma mining contract for $640m

Indonesia-listed coal mining group PT Bayan Resources Tbk said that its East Kalimantan coal unit PT Gunungbayan Pratamacoal has signed a US$640 million mining contract extension deal with one of the largest coal mining contractor in Indonesia, PT Bukit Makmur Mandiri Utama (Buma).

The extension deal covers mining and overburden removing activities. Buma will be obliged to remove 260 million bcm of overburden, starting January 2012 until December 31, 2017 with an option to add more 50 million bcm of overburden.

Bayan did not provide coal production figure under the deal. (romel)