Seroja secures $150m coal transportation contract
Thursday, November 18 2010 - 03:39 PM WIB
The Coal Barging Agreement was won by PT PSJ through a competitive bidding process where PT PSJ emerged as the bidding party which made the best offer. Through this Coal Barging Agreement, PT PSJ will further strengthen and enlarge their strategic relationship with PT Adaro Indonesia, which is one of the largest coal producers in Indonesia.
The Coal Barging Agreement is to transport coal from PT Adaro Indonesia, to various buyers located within the Indonesian archipelago. The Coal Barging Agreement is for a period of 7 years. PT PSJ estimates the contract value to be approximately US$150 million.
PT PSJ is providing this transportation service to its Indonesian customers using its Indonesian-flagged vessels owned and operated by PT PSJ, in full compliance with cabotage laws as the transportation will be carried out in Indonesian waters.
As the current financial year is coming to an end, the Coal Barging Agreement is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the Company for the current financial year ending 31 December 2010.
Apart from the deemed interests of Mr Edwin Soeryadjaya and Mr Sandiaga Uno, who are key minority shareholders of PT Adaro Energy Tbk, the holding company of PT Adaro Indonesia, none of the Company?s other directors or substantial shareholders has any interest, direct or indirect, in the above transactions save for their interests (if any) in the share capital of the Company. Mr. Edwin Soeryadjaya and Mr. Sandiaga Uno are substantial shareholders of the Company. Mr. Edwin Soeryadjaya is also a director and the Non-Executive Chairman of the Company.
The Coal Barging Agreement has been approved by the Company?s audit committee in accordance with the general mandate passed by the shareholders at the last annual general meeting of the Company on 28 April 2010. (ends)