Cipta Kridatama Grows Portfolio by Securing US$187 Million Iron Ore Mining Contract
Cipta Kridatama commences business expansion to iron ore mineral sector
Jakarta, April 20, 2015 – PT Cipta Kridatama (CK), a subsidiary of PT ABM Investama Tbk. (IDX: ABMM) has secured a new mining service contract worth more than US$187 million from PT Adidaya Tangguh. The working contract, which will run until 2023 and is CK’s first contract in the iron ore mineral mining sector, was signed by CK President Director Irfan Setiaputra on April 16, 2015 in Jakarta.
Through the contract, CK will provide mining services such as overburden removal, transportation for iron ores, as well as heavy equipment rental at PT. Adidaya Tangguh’s iron ore mine located in the Pulau Taliabu Regency, North Maluku. Throughout the duration of the contract, CK is expected to attain more than 13 million BCM in land overburden stripping volume, and rent equipment to produce more than 21 million Mt iron ores in mining areas that stretch 100 ha. The iron ores will then be brought to an iron ore processing factory in Pulau Taliabu, North Maluku.
CK President Director Irfan Setiaputra said, “The new contract with PT. Adidaya Tangguh becomes CK’s pioneer contract in the non-coal sector, particularly in the field of iron ore mining. This success represents our strategic step to maintain the company’s positive performance in the coal industry, which has yet to show signs of gaining strength, while allowing greater opportunities for CK to serve more clients in other mineral mining sectors.”
With the support of ABM Investama as its parent company, CK boasts solid business fundamentals. The company, which has been operating since 1997, is a major player in the mining service business in Indonesia. To bolster its business, CK since 2013 has diversified to the construction service sector such as mining infrastructure construction, toll roads, dams, as well as oil and gas. To expand its portfolio, the company has also set its sights on other business sectors with similar potentials, such as non-coal mining.