Looking for a New Contract, Samindo Wait for Certainty from Bayan
PT Samindo Resources Tbk (MYOH), a mining services company, is awaiting the certainty of a coal contract extension from PT Bayan Resources Tbk (BYAN). The contract will expire in December 2019. Samindo Head of Investor Relations Ahmad Zaki Natsir said that until now his party continued to negotiate with Bayan. Clarity of the extension of Bayan's contract is one of Samindo's considerations in deciding whether or not to take new contracts from other mining companies.
"If the Bayan project already has certainty, it will not continue, most likely we will make a faster decision," Zaki told Katadata.co.id, Wednesday (10/4).
This certainty is very necessary, considering that the resources that can be allocated for new contracts are being used for Bayan. Therefore, Samindo has not been able to make a decision to have a new contract. However, the approach with other mining companies is still carried out. Through this approach, Samindo hopes to get a new mining service contract with a total production of 1 million tons this year. Despite not mentioning names, there are already several companies that are being approached. At present, his party is studying the mining area owned by the company. Initially, Samindo only contracted with PT Kideco Jaya Agung, but in recent years the production target of the company affiliated with PT Indika Energy Tbk has declined. Therefore, the remainder of its resource capacity is optimized to work with Bayan.
Last year Samindo obtained a mining service contract from PT Bayan Resources Tbk. (BYAN) to produce coal with 7 thousand calories, with a total volume of 2.5 million tons. This year Samindo targets overburden / OB volume of 58 million bank cubic meters (bcm) and coal production of 10.8 million tons. This volume increased from last year's 55 million tons. Increased production due to a high stripping ratio. Meanwhile, the Reference Coal Price (HBA) in March 2019 for 6,322 calories was US $ 90.57 per ton, or down 1.3 percent from February at US $ 91.80 per ton. Meanwhile, in January it was US $ 92.41 per ton.
Samindo is a coal mining company whose majority (63.57 percent) is owned by a South Korean company, Samtan Co.Ltd. Other shares of 15.12 percent are owned by Favor Sum Investment Ltd and the remainder is owned by the public.