ITM in talks to extend MBSS contract

By Edgar Subroto

IDX-listed coal mining group PT Indo Tambangraya Megah (ITM) and IDX-listed Integrated coal transport & logistics services provider PT Mitra Bahtera Segara Sejati Tbk (MBSS) are currently in negotiation to extend their current transhipment services contract, which will be expired in Feb. 2013, an industrial source told Petromindo.com.

"The negotiation is expected to conclude before the contract ends," the source said.

Under the deal, which was signed under 18-month contract starting Aug. 20, 2011, ITM should provide a minimum quantity of 3.5 million tons cargo, which distributed equally for the first 12 months and prorated for the last 6 months.

All ITM?s coal units, namely PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Kitadin, PT Jorong Barutama Greston, PT Bharinto Ekatama and Banpu Minerals (Singapore) Pte Ltd. are using MBSS transhipment services in Bontang Anchorage which is operating two floating cranes.

Editing by Er Audy Zandri