Two ITMG subsidiaries conclude contract renegotiation

By Cepi Setiadi

Two of the five subsidiaries of IDX-listed coal giant PT Indo Tambangraya Megah Tbk (ITMG) signed MoUs with the government on Friday on the completion of contract renegotiation.

The two subsidiaries are PT Trubaindo Coal Mining and PT Jorong Barutama Greston.

A total of 25 mining companies including 19 coal miners signed on Friday MoUs with the government on the completion contract renegotiation as they finally agreed on the six points of the renegotiation following years of protracted dispute. The contract renegotiation has been mandated by the 2009 Mining Law.

Leksono Poeranto, director of ITMG told Petromindo.com after the signing that the two subsidiaries have agreed on the six points of renegotiation proposed by the government.

"For the remaining subsidiaries such as Idominco Mandiri, Kitadin and Barinto, we are still reviewing it, but principally we have no more problem with the contract renegotiation," he said.

Elsewhere, Leksono said that during the first two months of this year, ITMG produced 4 million tons of coal from the full-year target of 29 million tons.

"Most of the output were exported, as we have longterm contracts from 2012 and 2013," he said, adding that the export destinations are Hong Kong, Korea, Japan, Spain and New Zealand.

ITMG has five subisdiaries. PT Trubaindo Coal Mining holds concessions located in the districts of Muara Lawa, Bentian Besar, Muara Pahu and Damai of the Regency of West Kutai, East Kalimantan Province. PT Indominco Mandiri located in Bontang, Kutai Kartanegara and East Kutai regencies, East Kalimantan. PT Bharinto Ekatama in West Kutai and North Barito regency, East and Central Kalimantan.

PT Jorong Barutama Greston in Banjarmasin, South Kalimantan and PT Kitadin (Embalut) in Embalut village, Kutai Kartanegara regency, East Kalimantan.

Editing reiner simanjuntak