Sembawang Kimtrans bags logistics service contract from Arutmin

Monday, January 5 2004 - 07:12 PM WIB

Singapore-based marine service company Sembawang Kimtrans Ltd (SKL) said Monday it had secured an agreement with South Kalimantan-based coal producer PT Arutmin Indonesia to supply and operate a fleet of self-discharging vessels for Arutmin's coal logistics requirements.

SKL said the contract, which is being prepared for signing, would be for an initial period of 3 years, with a further 2-year extension.

?Based on projected production level, the contract value is estimated to be a minimum of S$30million over the 5-year period,? SKL said, adding that two sets of the specialized vessels have already commenced operations on 1st January 2004 and it would be increased to four sets by mid 2004.

Arutmin operates 4 mines - Senakin, Satui, Mulia, and Batulicin - and an international coal export terminal in South Kalimantan. The company produced 10.6 million tons of coal in 2002 and projection of around 15.8 million tons in 2003.

SKL added that the agreement was facilitated by BHP Billiton, an Australian-based diversified resources company.

JSX listed Bumi Resources Tbk acquired Arutmin from BHP Billiton in 2001. Under the deal, BHP-Billiton will retain right to market 75 percent of Arutmin?s production.(robert)

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