Cipta Kridatama Secures New US$63 Million Contract
Cipta Kridatama secures mining service contract valid untii 2019
Jakarta, September 2, 2014 - PT Cipta Kridatama (CK), the subsidiary of PT ABM Investama Tbk. (1DX: ABMM) has once again secured a new mining service contact worth US$63 million from PT Bangun Olah Sarana Sukses (BOSS), the subsidiary of PT Megah Pratama Resources. The mining service contract, which will expire in 2019, was signed by CK President Director Yovie Priadi and BOSS President Director William Siawira on August 15, 2014 in Jakarta.
Through the contract, CK will provide such mining services as overburden removal and cover hauling, coal transport, heavy equipment rental as well as maintenance of coal road transport infrastructure for BOSS'S coal pit mine located in West Kutai Regency, East Kalimantan.
Throughout the contract period, CK is expected to produce some 23 million Bern of overburden removal and heavy equipment rental to produce as 1.5 million tons of coal per year.
PT Cipta Kridatama President Director Yovie Priadi said, "The new contract with BOSS will serve to maintain the positive performance of CK amid conditions in the coal industry that have yet to recover. Our success in securing these new mining contracts also reflect CK's highly satisfactory service level for customers."
In 2013, CK also managed to secure several new coal mining contracts worth US$839.27 million for several mining locations in South Sumatra and East Kalimantan. Currently, CK's largest mining sites are located in Aceh, Bengkulu, South Sumatra, South Kalimantan and East Kalimantan.
With the support of ABM Investama as its holding company, CK boasts solid business fundamentals. With more than 3,400 employees and some 600 heavy equipments, the company, which was established in 1997, is one of the main players in the mining business in Indonesia. To bolster its business, CK has diversified into the construction sector for the development of infrastructure for mining, toll roads, dams, as well as oil and gas since 2013.