Samindo obtains coal mining contract from Gunungbayan

IDX-listed integrated coal mining services company PT Samindo Resources Tbk has recently obtained a new contract from coal mining firm PT Gunungbayan Pratamacoal, a subsidiary of IDX-listed coal firm PT Bayan Resources Tbk.

Samindo said in a statement Monday that the two-and-a-half-year contract was signed by its subsidiary PT SIMS Jaya Kaltim with Gunungbayan on May 10.

?Based on the timeframe agreed by both parties, kick off of the project will start in early July 2017. SJK is currently preparing to mobilize equipment and developing base camp. It is expected by the end of June all preparations have been completed and the project can start running as scheduled,? Samindo said in a statement.

According to the contract, the company said, until 2019, SJK will obtain additional overburden removal volume of 14.7 million bcm and 1 million tons of coal output volume.

Gunungbayan operates a coal mine in East Kalimantan, which was suspended in 2015 primarily due to weak coal price environment. Bayan said recently that in the wake of coal price recovery, the company plans to resume production at Gunungbayan in the second semester of this year. A source told this portal earlier that output from Gunungbayan is expected to be between 200,000 and 400,000 tons this year.

Editing by Reiner Simanjuntak