Sweden's Sandvik gets 12 years contract from Freeport Indonesia

Sweden?s engineering group Sandvik AB (S.SAN) said Thursday that its Mining and Construction business unit had received a contract from the P.T. Freeport Indonesia mining company for the delivery and service of customized equipment for surface mining of copper and gold in Papua.

The agreement is for a period of 12 years and is worth SEK700 million. The first deliveries of new equipment are scheduled for the spring of 2003.

The principal owner of the mining company, Freeport McMoRan Copper & Gold, is one of the world's largest copper and gold producers. Mining operations are conducted at an altitude of above 3,000 meters and this places heavy demands on the functionality and durability of the equipment.

Driltech Mission, a sector within Sandvik Mining and Construction, will deliver drilling rigs, tools, spare parts and service to the mine. Deliveries include roller cone bits from Sandvik Smith.

"The agreement is the result of long and successful relations and through this cooperation the customer can increase the mine's productivity and cost-efficiency significantly," says Anders Ilstam, President of the Sandvik Mining and Construction business area. "Our position in the industry as a leading supplier of high-efficiency products and services is further strengthened as a result of the agreement," he said.(robert)