PSL, JPN to jointly run heavy equipment leasing for coal mining
Monday, February 20 2012 - 02:53 AM WIB
Singapore-listed civil engineering service firm PSL Holdings Limited announced that the company entered into memorandum of understanding (MoU) with a heavy equipment distributor, JPN Industrial Trading Ltd on February 16.
Under the MoU, the two companies agreed to set up a joint venture in business of owning and leasing the heavy equipments for coal mining and related businesses in Indonesia.
The planned joint venture of which PSL would have 80 percent of equity stakes with the remaining belong to JPN, would also provide services of conducting feasibility study on coal and related business in Indonesia.
The day to day operation would be run by PSL.
It said that the two companies would procure initial fleet of heavy equipments with the investment of US$50 million.
?The purchase of such equipment will be funded by way of pro-rata equity contributions from the Parties with the remainder by bank financing,? PSL Holding said in the statement.
The two companies agreed to step negotiation to reach the definitive agreement on the planned joint venture.
Editing by Adianto P. Simamora