Release: BEML, Sumber Mitra alliance to bid for coal blocks for contract mining

(04 March 2009)--BEML LIMITED, a Public Sector Enterprise and leading Mining and Construction Equipment Manufacturing Company has entered into a agreement with Sumber Mitra Jaya (SMJ) of Indonesia to bid for upcoming Contract Mining businesses in India.

An agreement to this effect was signed between BEML Limited and SMJ at New Delhi on Monday in presence & the Speaker of Indonesian Parliament Mr. Agung Laksono, Ambassador of Indonesia in India Mr.Andi M. Ghalib and CMD of BEML LIMITED Shri V RS Natarajan during a. Indonesian business delegation visit to India..

The consortium approach includes agreement for investments in Contract Mining wherein 30% of the investment will be made by BEML and 70% by SMJ, Whereas BEML investment will also comprise of Equipments, Spares and services; Sumber Mitra Jaya will take cure of the rest of responsibilities including planning and execution of Contract Mining. This strategic alliance of BEML with SMJ, evokes significance keeping in view large scale emerging opportunities arising Out of the opening up of the Coal Blocks to Private players to undertake Contract Mining.

BEML Ltd is exploring the possibilities of establishing a company in Indonesia to improve the export prospects in association with SMJ, Indonesia as the local minority partner, looking at huge business opportunities for Mining Equipments, spares, services and also for rebuild and rehabilitation of the equipments.

Currently BEML has export orders of Rs.180 crores from Indonesian Company. (end of release)