2018, Samindo Targets to Increase Production

Samindo runs the four production activities through four subsidiaries, PT SIMS Jaya Kaltim, PT Trasindo Murni Perkasa, PT Samindo Utama Kaltim and PT Mintec Abadi.

PT Samindo Resources succeeded in reaching an agreement with PT Kideco Jaya Agung to continue the mining services contract with four subsidiaries, namely PT SIMS Jaya Kaltim (overburden removal and coal getting), PT Trasindo Murni Perkasa (coal hauling), PT Samindo Utama kaltim (coal hauling) and PT Mintec Abadi (exploration drilling).

Samindo's subsidiary until now has been more than 15 years serving PT Kideco Jaya Agung. During the management of PT KIDECO Jaya Agung mine, four of our subsidiaries have done many innovations that have an impact on excellent performance.

Based on the agreement between the Company's subsidiary and PT Kideco Jaya Agung, starting in 2018 the Company's annual production target will increase every year. "The target is about 5% -10% increase," said Ahmad Zaki Natsir, Investor Relation of PT Samindo Resources Tbk.

One of the agreed points is that the 2017 target will serve as the lower limit in the calculation of the Company's annual targets in the future. The agreement can be ascertained in the next few years Samindo production target will continue to increase from year to year.

Apart from the contract with PT Kideco Jaya Agung, Samindo has also secured a medium-term contract with Bayan Group for overburden removal and coal production activities. In 2018, the Bayan project will make a more significant contribution to Samindo's performance.

Referring to the agreement with PT Kideco Jaya Agung, Ahamd believes, starting in 2018 its production targets will increase every year, considering the target for the next six years should be higher than the target in 2017. "We hope the Bayan project runs well in 2018 and can contributed positively to the Company's operational performance, "said Zaki, and by the end of 2017 Samindo targets to produce 48 million bank cubic meters (bcm) and 10 million tons of coal.