Samindo Resources Confindent The Production is On Target

KONTAN.CO.ID - JAKARTA. PT Samindo Resources Tbk in the third quarter of this year seeks to boost overburden removal production that had stalled during the first half of 2017, through its coal mining service contract with PT Bayan Resources Tbk and with KIDECO.

Until the end of third quarter 2017, through its contract with Bayan, the company coded MYOH issuers is targeting can do overburden removal production up to 2.6 million bcm.

Investor Relations MYOH, Zaki said, until at the end of Q3 the company's performance has started positive. The evidence, the production that has been done in Bayan has reached 1.3 million tons bcm.

"Based on targeted 2.6 million tonnes of bcm will be complete at the end of this year. So still less about 1.3 million bcm again Divided by three months, about 400,000 bcm per month. As of September we reach 500,000 bcm, "he explained in Jakarta, Wednesday (17/10).

For your information, MYOH's coal mining services contract with Bayan Resources will end in 2019. He hopes, with MYOH positive performance and  can complete its performance with the target, then the contract can be renewed again.

The contract of overburden removal targeted until 2019, reaching 15 million bcm. "If we see from our good performance, that the progress of our target achievement can be completed, there is the next possibility we can upgrade according to our achievement," he said.

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

Just so you know, 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 as well, the MYOH contract with Kideco will also end up knowing 2023. However, Zaki is optimistic the contract will extend. The reason, MYOH already very familiar field in both pit.

"Because honestly, we have been there for 15 years we are very familiar and experience, so if the portion is taken, other contractors automatically need adjustments," he said.