ITMG coal units get sales services assistance from Banpu

By Romel S. Gurky

Coal miners PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Bharinto Ekatama, PT Kitadin, and PT Jorong Barutama Greston, which are subsidiaries of IDX-listed coal giant PT Indo Tambangraya Megah Tbk (ITMG), which is part of Thai energy giant Banpu Group, have signed a second amendment to the marketing services agreement first signed in 2012 with the latter group.

Under the amendment, Banpu will provide sales services to the five aforementioned coal miners in addition to the marketing services.

?The reason in changing (the agreement) is to add sales services in addition to the marketing services in order to harmonize the international strategy of Banpu Group and to adjust with the current production quality to be produced by the Controlled Company with the condition of international coal trading now and the future,? ITMG said in a statement Tuesday, referring to the five coal mining subsidiaries.

The marketing and sales of the coal product of the ITMG coal units that will be done by Banpu for export market is a supporting activities of the coal production of the mining firms because they focus on the mining activities so that the sales especially for export market need help from third party, Banpu in this case, the statement explained.

?The reason for using the marketing agent is to support the marketing and export of coal which is common in the coal mining industry because marketing agents have a better knowledge on the needs and prospect of international consumers/clients,? it further said.

?Toward that additional sales services there will be no additional marketing fee payable by the Controlled Company to Banpu as the existing fee of 1.5% of gross coal export as stipulated in the Amendment Marketing Service Agreement,? it concluded.

Editing by Reiner Simanjuntak