Indonesia’s ABMI secures mining contract

OREANDA-NEWS. Indonesian energy services and infrastructure firm ABM Investama (ABMI) has secured a \$58.8mn mining contract with Kalimantan-based coal producer Mitrabara Adiperdana, which will see it produce at least 6mn t of thermal coal over a three-year period.

The contract will be managed by ABMI's subsidiary company Cipta Kridatama and involves overburden removal, coal haulage and equipment rental. The mine in north Kalimantan will produce 2mn t/yr of thermal coal with a gross-as-received calorific value of around 5,400 kcal/kg.

"The coal market is still open to both domestic and global needs. Taking into account the Mitrabara Adiperdana mine sites in north Kalimantan and their advantages in producing low ash and very low sulphur, the company will focus on coal supply for the premium market in Japan, Taiwan, India and others, while also exploring the possibility of supplying the premium domestic market," said Cipta Kridatama.

Mitrabara Adiperdana is part of Indonesia's Baramulti Group, which aims to increase output capacity to 4mn t/yr this year. Baramulti currently owns 11 coal mining concessions, six of which are operational and the remainder under development.

Japanese refiner Idemitsu Kosan last year bought a 30pc stake in Mitrabara Adiperdana amid plans to strengthen its overseas resource development business amid stagnant domestic demand for oil products in Japan. Idemitsu said it was planning to market coal from Mitrabara Adiperdana's Malinau mine in Japan and other Asia-Pacific countries.