MYOH Strengthen Mining Contract with Kideco

JAKARTA - PT Samindo Resources Tbk. has strengthen its mining contracts with PT Kideco Jaya Agung.

Samindo Resources Investor Relations Ahmad Zaki said the company's subsidiary has signed a contract with PT Kideco Jaya Agung last week.

The agreement, he said, is to continue the mining services contract of PT Kideco Jaya Agung with four subsidiaries of PT Sims Jaya Kaltim, PT Samindo Utama Kaltim, PT Trasindo Murni Perkasa and PT Mintec Abadi.

Based on the agreement, the company's coal production target will increase from 2018 to several years ahead. The reason, the agreement set the achievements of 2017 as a lower limit calculation of the company's annual target.

"The percentage is not specified. Just mentioned no lower than the target in 2017. So, flexible percentage depends on production target Kideco, "he said when contacted, Monday (20/11/2017).

In addition to Kideco's contract, Zaki added that the company has secured a medium-term contract from PT Bayan Resources Tbk. to undertake the activity of overburden removal and coal getting. Next year, he added, Bayan project will provide a more significant contribution to the operational performance of this MYOH coded stock issuer.

"We expect the Bayan project to run well in 2018 and can contribute positively to the company's operational performance," he said.

Samindo Resources Operational Director Ahmad Saleh revealed that the company's subsidiary, PT SIMS Jaya Kaltim is currently a mining contractor for Kideco.

According to him, under the agreement, SIMS will work on the mine until the mining contract (agreement on coal mining concession / PKP2B) ends in 2023.

"If after that [2023], then we will see. We will deliver a good performance. If our performance is excellent,  definitely we will get extention, "he said.

Ahmad Zaki at that time also revealed that for the mining services contract in Kideco is until 2023. But indeed after 2023, it is not yet know because there are many schemes and options.

"There are many schemes and a lot can happen. But, SIMS has 15 years in Kideco. If the portion is taken, other contractors need adjustment, "he said.