Indika, China Railway sign agreement on mining, infrastructure projects in RI
Friday, October 4 2013 - 12:50 AM WIB
IDX-listed PT Indika Energy Tbk on Thursday signed a principal agreement with China Railway Group Limited (CREC) to jointly develop mining and transportation infrastructure projects in the Papua and Central Kalimantan provinces.
The company said in a statement that the two companies will work together in the development of mining projects, to acquire and consolidate sufficient mineable reserves to support minimum production of 10 million tons of coal per annum per project in the provinces of Papua and Central Kalimantan.
Further, subject to successful completion of bankable feasibility studies, Indika Energy and CREC also agree to partner in the development of necessary infrastructure and to conduct related transportation activities in the relevant mine project areas in Papua and Central Kalimantan. It is estimated that the value of the engineering, procurement, construction, operation and maintenance contracts related to these projects is approximately US$6 billion.
CREC is a large conglomerate and a listed company based in Beijing, People?s Republic of China, with a range of expertise in infrastructure, transportation, property, investment, manufacturing and business management in numerous other disciplines.
Editing by Reiner Simanjuntak