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Monday, 19 September 11
INDOMOBIL ENTERING INTO COAL MINING BUSINESS


COALspot.Com- PT Indomobil Sukses Internasional Tbk, part of, one of Indonesia's largest  conglomerates, to enter into mining industry acting as the coal mining contractor this year via its subsidiary, PT Prima Sarana Gemilang (PSG).

PSG, heavy equipment and mining division of Indomobil has bags mining contracts from PT Nusantara Berau Coal, to remove overburden and coal. PT Nusantara Berau Coal is  part of Salim group and located in East Kalimantan, Indonesia.

Director of Indomobil Bambang Subijanto explained that Indomobil’s expansion to coal business aim to build synergies and creating value added for the company. This step is parallel with Indomobil’s subsidiary company, PT Indotruck Utama, which has been appointed as the second distributor for Volvo Construction Equipment in Indonesia.

The first distributor of Volvo is PT Intraco Penta Tbk.

Indotruck will handle marketing and sales of Volvo for Sumatera, Java, Nusa Tenggara, and Papua regions. Meanwhile, Intraco is active in Kalimantan, Sulawesi, and Maluku.  “Our experience is in heavy equipment equipments and maintenance activities, we decided to enter into coal contracting industry,” Bambang said to the press.

Furthermore, Bambang explained that Indomobil has got a strategic investor to form PSG. Indomobil is holding 60% in PSG, but Bambang refused to identify Indomobil’s partner who is holding remaining shares in PSG.

According to Bambang, PSG has commenced its production in NBC mine since March 2011.

He is expected the production of coal will reach 1.7 million ton by end of this year, and this target can be achieved. 

The duration contract from NCB to PSG is for a three-year period. 

"For next year, PSG is targeting to produce 3 million tons of coal and we optimistic this target also can be achieved,” said Bambang.

To contact the freelance reporter responsible on this story: Efendi at efendi@coalspot.com



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