Pama bags 5-year contract from Sebuku coal mine

Indonesia?s leading mining contractor PT Pamapersada Nusantara (Pama) has clinched a 5-year mining contract starting this year to provide mining service for South Kalimantan coal miner PT Bahari Cakarawala Sebuku, a coal unit of Singapore-listed coal miner Straits Asia Resources Ltd.

The company?s official told Petromindo.com that under the contract, Pama will remove 9 million bcm of overburden per annum and mine 3 million tons per annum of coal for Sebuku.

The official said that the contract was signed in June. For this year, Pama will only produce around 1.5 million tons of coal, the official said without giving further details.

In a September presentation, Straits Asia said it also expected to sign a mining service contract with Pama to carry out mining activities at a new pit in Sebuku called Northern Leases.

The official said that the negotiation is on-going, without giving a timeline.

According to Straits, Sebuku is expected to produce 1.5 million tons this year. Until the first half of this year Sebuku produced a total of 443,000 tons. The company will boost its coal output from Sebuku mine to 3 million tons in 2011, 4.5 million tons in 2012 and 6.0 million tons in 2013.

Pama is a unit of an Jakarta-listed heavy equipment distributor and miner PT United Tractors (UT).(denny)