Indomining gives only 6 month contract extension to SIS

By Edgar Subroto

East Kalimantan coal miner PT Indomining has extended for a period of 6-months the mining services contract with its main and only coal contractor PT Saptaindra Sejati (SIS), a mining service contract unit of IDX-listed coal miner PT Adaro Energy.

The new contract extension has only 6 month duration from August 2012 to January 31, 2013.

The previous contract which has started since August 2007 should have been ended in August 2012.

The company did not mention the coal volume that should be delivered by SIS under new deal but under the deal for the period 2007-2012, SIS should produce the coal at total of around 6.8 million tons.

PT Indomining targets to slightly increase its coal output to 1.8 million tons in 2013 from this year target of 1 million tons, an industrial source told Petromindo.com.

Indomining, coal unit of IDX-listed PT Toba Bara Sejahtra expects to get lower coal output of only 1 million tons this year from its original target of 1.4 million tons as the current coal price is still low, the source said.

Editing by Adianto P. Simamora