Singapore’s Tat Hong bags contract from Gunungbayan Pratamacoal

Singapore Stock exchange-listed heavy equipment and crane supplier Tat Hong Holdings Ltd. announced on Thursday that its joint venture company Tat Hong Energy Pte. Ltd. had entered a 5-year equipment leasing agreement with East Kalimantan coal miner PT Gunungbayan Pratamacoal (GBP) and its affiliate and related companies.

Tat Hong’s partner in the 50:50 joint venture is Singapore-based Manhattan Investments Pte Ltd

The company said in its report to the Singapore Stock exchange that under the Leasing Agreement, the JV subsidiary will lease mining equipment involving 250-ton excavators, 120-ton excavators and 90-ton dump trucks for a period of 5 years to the GBP Group. The leasing agreement may be extended by both parties for further periods.Leasing revenue for 5 years is estimated at around S$119 million.

The responsibility for the repairs and maintenance of the mining equipment is to be undertaken by the equipment supplier in conjunction with GBP’s mining contractor.

The GBP Group and Manhattan are connected in the sense that they have certain common shareholders.

The investment in mining equipment for the Leasing Agreement by the JV subsidiary is estimated to be S$85.2 million, such investment to be made progressively over the next 12 months. (alex)