0 ABM Investama Secures $225m Coal Pit Contract

Coal miner ABM Investama has, through its mining services provider, sealed a $225 million deal for works on a coal pit in Musi Banyuasin, South Sumatra. ABM told the Jakarta Globe on Tuesday its unit Cipta Kridatama signed the five-year contract — valid until 2018 — with coal mining company Realita Jaya Mandiri on Friday. Cipta Kridatama’s president director Boedi Santoso and his Realita Jaya Mandiri counterpart Arif Syaifuddin were both present to ink the deal. 

Under the agreement, Cipta Kridatama will provide overburden removal and heavy equipment lease services to develop Realita Jaya Mandiri’s Musi Banyuasin mine, which mainly supplies a power plant in Banten. “We very much appreciate this opportunity to work with RJM,” Boedi said. “Not only do we note the company’s commitment to responsible operations, but we also know this deal recognizes the high-quality services we provide. Our contributions to RJM will maximize its performance long-term.” 

ABM Investama president director Andi Djajanegara said the agreement would see both partners breaking into new territory. “This contract will expand CK’s and ABM’s operational reach to Sumatra and diversify CK’s operational locations, which are currently concentrated in Kalimantan,” he said. Founded in 1997, Cipta Kridatama is one of the leading coal mining service providers in Indonesia, offering pit-to-port assistance around the archipelago. The company is staffed by more than 3,400 employees and operates in excess of 624 units of heavy equipment. 

ABM Investama is an integrated energy firm focused on coal production, contract mining services and power solutions, supported by engineering services and integrated logistics. It is part of the Tiara Marga Trakindo Group, controlled by the Hamami family, which earned its fortune in the heavy equipment industry 40 years ago. ABM’s shares were unchanged at Rp 3,200 in Tuesday trading on the Indonesia Stock Exchange. Earlier this month, the company announced its unit Reswara Minergi Hartama had obtained a combined $150 million loan to finance coal mining asset development in Aceh. 

Meanwhile, Realita Jaya Mandiri is undertaking exploration activities in several regencies in South Sumatra: Sumber Harum, Sidomulyo, Simpang Tungkal, Bayung Lencir and Musi Banyuasin.

source : the jakarta globe