Update: KSM to sign $900m mining contract with BUMA

(adds contract duration)

Coking coal producer PT Kartika Selabumi Mining (KSM) is expecting to sign a contract valued at near US$900 million with Indonesia?s second-largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA) in the next two week, the company?s official told Petomindo.Com.

Under the deal, BUMA will start first production in March 2012 with a volume of 1 million tonnes from northern block of KSM concession and will ramp up to 2 million tonnes per annum in 2013, the source said.

The duration of the contract is 10 years, the source said.

At present, KSM produces around 700,000 tonnes of coking coal per annum from its southern part of its concession.

KSM holds second generation coal contract of work (CCoW) over 17,550 hectares area, located in Kutai Kartanegara regency, East Kalimantan. (denny)