MYOH Optimistic Exceeds Target Due to Bayan Resources Project

JAKARTA - PT Samindo Resources Tbk (MYOH) is optimistic that mining service business performance will be positive this year. The Company has developed many innovations as a provider of coal mining services with PT Bayan Resources Tbk (BYAN) and with Kideco.

Director of Operations MYOH Ahmad Saleh said, in the third quarter of 2017 it seeks to boost the production of overburden removal that had stalled during the first half of 2017 in two major locations. Until the end of the third quarter / 2017, through its contract with Bayan, the company coded MYOH issuer is targeting to do the production of overburden removal up to 2.6 million bcm.

"Up to the end of Q3, the company's performance has started positive," he said, Jakarta, Thursday (10/19/2010). "The production that has been done in Bayan has reached 1.3 million tons bcm," he said.

He explained that the target is 2.6 million tonnes of bcm this year. So still less about 1.3 million bcm again. Divided by three months, about 400,000 bcm per month, but the achievement in September to 500,000.

The MYOH coal mining service contract with Bayan Resources will end in 2019. He hopes, with a positive MYOH performance and can complete its performance on target, the contract can be extended again. The overburden removal production contract targeted to 2019 reached 15 million bcm.

"Due to our good performance, we are confident the target can be completed, there is possibility we can upgrade our contract according to our achievement," he said.

In addition to contracts from Bayan Resources, a 15-year project in Kideco has also begun improvements after decreasing intensity of rainfall and the impact of strategic in-pit dumping areas that are beginning to produce positive results.

For your information, the coal production target in Kideco through Samurangau mining area this year reaches 40 million tons and Roto Nort mining area reaches 8 million tons per year. "Now the realization reaches 75% of the target," he said.

For information, the MYOH contract with Kideco will expire in 2023. However, Zaki is optimistic his contract can be re-extended. The reason, MYOH already very familiar with the mine in both pit.

"Because we have 15 years so there is very familiar and experience, so if our role is taken, other contractors automatically need adjustments," he added.

The Company continues to expand its wings through other businesses aside from its core business as an integrated coal mining service provider. until now, the company is still exploring the acquisition of coal mine land. Especially coal mine mouth and development of Steam Power Plant (PLTU) Mine Mouth.

He mentioned, since two years ago it is still looking for coal mining area to be acquired. Moreover, Samtan Co Ltd as MYOH's shareholder has ordered MYOH to seek other business opportunities outside of the current one.

Saleh said the company is already having to expand its business with a different core business. "We have just come to two mine sites in Central Kalimantan and East Kalimantan, for those two mines there is no certainty yet, and there is no due diligence," he explained.

Since there is no agreement whatsoever, then he can not say how much the investment value will be issued his company. Including, when the acquisition will be completed.

The acquisition of this mine as a form of MYOH support in building Mine Mouth Power Plant (PLTU) Mine. Later the mine will be used as a power supply.