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Release
January 28, 2013

ABM Secure 255,000 MT Coal to Lafarge to Strengthen Infrastructure in Nanggroe Aceh Darrusalam

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JAKARTA, January 28, 2013 – PT Reswara Minergi Hartama (Reswara), a subsidiary of PT ABM Investama Tbk. (IDX: ABMM), through its business unit PT Media Djaya Bersama (MDB), has secured coal sales with PT Lafarge Cement Indonesia (Lafarge), amounting maximum of 255,000 metric tons in year 2013. The sales contract signed by PT MIFA, MDB’s subsidiary; and Lafarge, was received back by MIFA on January 23, 2013.

With this contract, ABM through its subsidiary will supply coal for cement company Lafarge, commencing on January 25, 2013.

“This coal sales contract is essential for us. Not only it is our first commercial contract for our mine in Nanggroe Aceh Darussalam (NAD), but it also allows for our coal to be used to support the development plan for the industry in NAD. We really hope that we can continue to secure coal contracts and together with our subsidiaries contribute toward economic development in NAD,” said Reswara President Director Harry Asmar. 

Coal supply from MDB, MIFA’s parent company, will be used for a power plant that will drive the machines for Lafarge’s cement manufacturing process. For now, both parties have agreed upon a one-year period coal sales contract. However, there is the possibility it will be extended into a long-term commitment for five years.

“The potential contract extension to 2018 has been discussed by the both parties. This will increase our optimism in completing infrastructure development in Aceh, while seeking other potential domestic partners for our coal,” added Harry.

To support MDB’s business development, ABM is currently working on an infrastructure development project in Aceh, which is targeted to be completed and scheduled to operate commercially in November 2013.

PT ABM Investama Tbk. President Director Andi Djajanegara said, “This new contract has expanded ABM’s scope for the domestic market. In addition to the company’s commitment toward the domestic market, the contracts also show that there is room for growth, particularly in recent times when demands for coal from non-utility industries are increasing. We are committed to preparing our business units to respond to market demands, which are expected to revive in 2013, by completing, among others, the MDB infrastructure development in Aceh. Adequate infrastructure will certainly help our subsidiaries in improving their production efficiency, which will deliver positive influence on their corporate performance.”

With Lafarge new contract, Reswara has secured more than 1/3 of company’s coal sales target in 2013 for the amount of 6 million MT, after previously securing two new contracts extension with their partners, PT Avra Indonesia and Guangzhou Huaneng Trading Co., Ltd