ITMG units finalizes contract amendment

Three of the four subsidiaries of IDX-listed coal mining firm PT Indo Tambangraya Megah Tbk (ITMG) are set to soon sign the amendment of their coal mining contracts of work (PKP2B) with the government as they have finalized the draft for the contract revision, Kontan reported on Thursday.

The paper quoted ITMG Director Laksono Poeranto as saying that the amendment of the contracts would help ensure certainty for the company in running its business.

The three ITMG subsidiaries which have finalized the draft for the contract revision are PT Indominco Mandiri, PT Jorong Barutama Greston, and PT Trubaindo Coal Mining. They have agreed to the six main points of contract revision as proposed by the government including on the reduction of their concession area.

The concession area of Indominco, for instance, will be reduced from 25,121 hectares to 24,120 ha, that of Trubaindo will be cut down from 23,650 ha to 22,687 ha, while the concession of Jorong will be maintained at 9,556 ha.

Laksono said that another subsidiary PT Bharinto Ekatama is set to also finalize the draft for the amendment of its mining contract soon. ?The renegotiation process has been completed. So it?s only a matter of time to sign what has been proposed by the government,? he said. (*)