MYOH and Kideco Agree to Continue the Mining Contract
Ipotnews - Integrated coal mining services company, PT Samindo Resources Tbk, has reached an agreement with PT Kideco Jaya Agung to continue the mining services contract with four of its subsidiaries.
Referring to the agreement with Kindeco, we believe that by 2018 the company's production target will increase every year, as the target for the next six years should be higher than the 2017 target, "said Samindo Resources (MYOH) Investor Relation Ahmad Zaki Natsir in an official statement, in Jakarta, Wednesday (22/11).
The four subsidiaries of MYOH are PT SIMS Jaya Kaltim (coal cover removal and coal production), PT Samindo Utama Kaltim (coal transportation company), PT Trasindo Murni Perkasa (coal hauling company) and PT Mintec Abadi (exploration drilling company ).
According to Zaki, prior to this new agreement, the four subsidiaries have more than 15 years serving Kideco which positively impact the company's financial performance.
Zaki explained that the agreement between the subsidiary MYOH and Kideco mandated that starting 2018, the company's production target should increase every year. One of the agreed points is that the 2017 target will serve as the lower limit in the calculation of the annual target.
In addition to contracts with Kideco, Zaki said, MYOH also pocketed a mid-term contract with Bayan Group for overburden removal and coal production activities. In 2018, the Bayan project contributed positively to the company's operational performance.
We also expect the Bayan project to run well in 2018 and can contribute positively to the company's operational performance, Zaki said.