Pama bags $1billion mining contract from KPC

Indonesian top mining contractor PT. Pamapersada Nusantara had signed deal to do US$ 1 billion mining contract with East Kalimantan coal miner PT. Kaltim Prima Coal (KPC), parent company JSX-listed heavy equipment maker PT. United Tractors (UT) said in a statement.

UT said the contract was to exploit coal at KPC?s Bendili mine. ?This new mining contract is estimated to be worth over $1 billion over the length of the contract. To fulfill its needs, Pama will purchase the majority of its equipment from UT, including the maintenance service. In return, UT also will build new workshop and warehouse as a commitment from UT to fully support the operations in the location,? said UT. However, no detail was disclosed regarding the length of the contract of the scope of the works.

The new contract, said UT, will positively impact UT?s financial performance and strengthening Pama?s position as the prime coal mining contractor in Indonesia.

In 2003, Pama produced 27.7 million tons of coal with 140.6 million bcm overburden from its existing projects such as with PT Adaro Indonesia, PT Tambang Batubara Bukit Asam Tbk, PT Indominco Mandiri, PT Multi Harapan Utama, and PT Kideco Jaya Agung. (alex)