Musi Mitra, Bumi Persada in fee renegotiation talks
Monday, January 28 2013 - 01:15 AM WIB
PT. Musi Mitra Jaya (MMJ), a coal logistic unit of IDX-listed coal miner PT. Atlas Resources Tbk, is in fee service renegotiation with PT Bumi Persada Permai (BPP) on the use of the latter?s coal hauling facility to transport coal from Atlas mines in Musi Banyuasin, South Sumatra.
According to an industrial source, MMJ is asking to downward the previous fee service-deal amount of US$2 per ton due to slowdown of global economy condition, but the source did not give the detail.
Under previous deal, both parties have entered into a cooperation agreement for the use of hauling road owned by BPP for Group?s coal hauling.
Under the agreement, MMJ is required to pay a service fee of US$2 per ton of coal hauled. MMJ is also responsible for haul road development with a contribution of Rp150 million per hectare. The agreement is valid for 5 years from the signing date of May 3, 2012.
Atlas currently operates 14 coal mines in East Kalimantan, South Sumatra and Papua and five mining hubs in Berau, West Kutai, Oku (Ogan Komering Ulu), Muba (Musi Banyuasin) and Papua.
Atlas targeted to produce 5.1 million tons by 2014, and further ramping it up to 9.25 million tons per year in 2015.
The company would use most of its US$71 million capital expenditure to complete the construction of hauling road connecting its coal mining concessions in South Sumatra.
Editing by Er Audy Zandri