Samindo in talks with potential new client

By Cepi Setiadi

Petromindo

IDX-listed coal mining contractor PT Samindo Resources Tbk is currently in talks with a coal mining company in East Kalimantan Province with annual production capacity of 2-3 million tons as it seeks to grab a new client.

Investor Relations Manager of Samindo Resources Ahmad Zaki Natsir told Petromindo.com on Wednesday that the company is specifically seeking to get a new client with such production capacity to utilize idle capacity.

"We are in the process of negotiation. We expect to sign the contract in July 2017," he said, but refused to disclose the identity of the mining firm.

"If the contract is signed in July, we expect that by August we will start the coal production," he said.

Samindo, which currently manages coal mine owned by PT KIDECO Jaya Agung in Paser Regency, East Kalimantan, said previously it is allocating US$3.2 million for capital expenditure this year.

Editing by Reiner Simanjuntak