Vanguard engages Yudha Bhakti for shipment of sands to S?pore

By Ruli Setiawan

US-based Vanguard Mining Corporation (VNMC) said that it has engaged Indonesian logistics company PT Yudha Bhakti Menggala as an exclusive partner for logistics and sea transportation to handle shipment of construction sand, reclamation sand and other construction aggregates for the Singaporean construction market.

Vanguard Mining said in a statement on Monday it has partnered with several sand suppliers in Vietnam and Cambodia to provide construction and reclamation sands to Singapore and is currently working with Mega Kencana Persada (MKP), a company owning a 330-hectare limestone concession in Mandailing Natal, North Sumatra, to supply limestone to the Indonesian domestic and neighboring export markets.

For limestone aggregate, in the first phase MKP plans to produce about 25,000 MT of crushed limestone per month during the first six months and 50,000 MT per month for the next six months, and generate approximately US$11,250,000 in revenues and $2,812,500 net income during the first year. Beginning the second year, it can increase production capacity to 1.2 million MT per year for export markets, with projected revenues of $30 million and net income of $7,500,000 per year. The estimated limestone deposits of this concession are about 150 million MT.

While VNMC is in the process of acquiring or cooperating with other producing mines in Vietnam and continuing exploratory work at the PT Cendrawasih gold concession in North Sumatra, the company said it will focus on working with MKP to go into production as soon as possible.

Jalani Haniffa, President of VNMC, stated, "We are very pleased to have PT Yudha Bhakti Menggala as our logistics partner as we are moving forward with our sand supply business with Vietnam and Cambodia and getting ready to have our own production at MKP," Jalani added: "We believe it is a win-win strategy and will create substantial benefits for shareholders of both companies."

Editing by Reiner Simanjuntak