Samindo Extend the Coal Mining Services Contract with Kideco

Jakarta - PT Samindo Resources Tbk (MYOH) through its four subsidiaries succeeded in securing a further agreement on coal mining services contract with PT Kideco Jaya Agung. The advanced contract also regulates increased production every year.

The four subsidiaries of the company are PT SIMS Jaya Kaltim (overburden removal and coal getting), PT Samindo Utama Kaltim (coal transport), PT Trasindo Murni Perkasa (coal hauling), and PT Mintec Abadi (exploration drilling).

Samindo Resources Investor Relations Ahmad Zaki Natsir said the contract renewal agreement with Kideco stipulates that coal production targets will be raised annually since 2018. "One of the contract renewal points is that coal production in 2017 will serve as a lower limit in the calculation of annual targets the company in the future, "he said through a press release received in Jakarta, Monday (20/11).

He said, on the agreement can be ascertained that the production volume of overburden removal and coal of the company is certain to increase every year. This is expected to have a positive impact on the company's financial performance in the long term.

"Referring to the company's agreement with Kideco, we believe the company's production target will increase every year starting from 2018," he explained.

The Company also previously secure a medium-term contract with Bayan Group for overburden removal and coal getting activities. According to him, the Bayan coal mining project is targeted to contribute significantly to the company's operational performance starting 2018.

The Company previously signed a coal mining contract with a subsidiary of PT Bayan Resources Tbk (BYAN) for a period of up to 2019. The new contract provides a 6 million bcm overburden every year.

Based on the signed contract, the company is targeted to produce cover rock from the Bayan project of 2.6 million bcm by the end of this year. As of September 2017, the overburden volume generated from the mine has reached 1.3 million bcm, leaving 1.3 million bcm in the fourth quarter of this year.

Samindo Resources is an investment holding company with core competencies in the provision of coal mining services, such as overburden removal and coal getting, coal hauling, geological mapping and drilling.