Intraco Penta?s unit bags $125 million mining contract from Harsco

Listed firm PT Intraco Penta, through its mining contractor PT Karya Lestari Sumber Alam (Kasuari) has secured a mining contract worth US$125 million from PT Harsco Mineral, a coking coal mining company located in Kutai Kartanegra regency, East Kalimantan.

Kasuari would carry out land clearing, overburden removal, coal getting and coal handling works during the four-year contract which would begin in January, 2011, Intraco?s president director Petrus Halim said on Thursday.

Petrus said that the company would need about US$30 million in initial investment to buy heavy equipment and to develop supporting facilities such as haul road.

Earlier, PT Harsco Mineral said it would start commercial operations in the third quarter of 2010 with initial production 20,000 tons per month for the first four month. The output will be ramped up up to 50,000 tons per month afterwards.

Harsco has clinched a deal to ship one handymax of coking coal from its East Kalimantan mine to an undisclosed buyer in Japan in the fourth quarter of 2010 or early 2011, managing director Harsono D. Amidjojo told Petromindo.Com on in May, 2010. (*)