Pamapersada gets US$250 coal mining deal<\/p>\n
JAKARTA (JP): PT Indominco Mandiri has awarded a contract
\nworth US$250 million to PT Pamapersada Nusantara to mine and
\ntransport 13.7 million tons of coal in Bontang, East Kalimantan.<\/p>\n
The companies said in a joint statement here yesterday that
\nthe contract was signed in Jakarta on May 30,<\/p>\n
Indominco Mandiri will invest $160 million in the coal mining
\nproject which will be financed by private placement of
\nconvertible bonds and long-term overseas loans from Japanese
\nbanks.<\/p>\n
Indominco Mandiri is 65 percent owned by PT Indo Tambangraya
\nMegah and 35 percent by PT Indocement Tunggal Prakarsa, a major
\ncement producer.<\/p>\n
\"The 5.5-year contract includes the transportation of coal to
\na nearby seaport, some 35 kilometers south of Bontang, to supply
\nIndocement's plant in Bogor, West Java,\" the statement said.<\/p>\n
The coal reserves in the 25,000-hectare concession area of
\nIndominco Mandiri are estimated at some 70 million tons, which
\ncan be mined for 20 years, with an annual production rate of 3.5
\nmillion tons. The mine will start producing steaming coal in
\n1999.<\/p>\n
\"Some 1.5 million tons of the coal will be consumed by
\nIndocement, while the rest will be exported,\" said the statement.<\/p>\n
The contractor, Pamapersada Nusantara, is a subsidiary of PT
\nUnited Tractors, which produces heavy equipment.<\/p>\n
Prior to this contract, Pamapersada Nusantara was granted
\nanother contract by PT Adaro to mine and transport some 50
\nmillion tons of coal in South Kalimantan.<\/p>\n
The South Kalimantan coal project will start production in
\n1998 to supply a steam power plant in Paiton, East Java. (kod)<\/p>",
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