RMKO Gandeng ARII Working On Mining Facilities In South Sumatra

JAKARTA - PT Royaltama Mulia Konthorindo Tbk (RMKO) is officially collaborating with PT Atlas Resources Tbk (ARII) through a subsidiary of PT Gorby Putra Utama (GPU) to build and operate the Coal Crushing Plant (CCP) and other supporting mining facilities and provide coal logistics services upstream.

Just so you know, ARII is one of the coal producers in Indonesia that owns concession land, which in total reaches an area of more than 200,000 Ha.

The Director of Operations of the Company, William Saputra, said that exploration and coal production activities were coordinated through 6 hubs, one of which was Hub Mutara.

"The Mutara hub consists of 5 concession lands with a total area of more than 41,000 Ha located in Musi Rawas Regency and Musi Banyuasin Regency, South Sumatra," William said, Friday, March 22.

William said this hub had obtained a 137 km road construction permit that would connect the Mutara Hub to the Jetty Sriwijaya Bara Logistics (Jetty SBL) facility located in Sungai Lalang, South Sumatra Province.

Later, the management of the Mutara Hub will be carried out by the Company's subsidiaries, one of which is the GPU which owns 4,395 Ha land.

William further said, in this cooperation agreement, RMKO will operate 1 CCP unit with a capacity of 650 tph, including implementing stockpile management, loading coal to dump trucks, as well as procuring heavy equipment, including maintenance CCP and all other supporting mining facilities.

"This CCP facility will be built with investments originating from the Mulia Kencana Chain with an investment value of Rp36 billion and for this investment, the GPU will pay in stages according to the amount of coal production every month, or 200,000 MT of coal/month for 60 months," explained William.

In addition to paying CCP investment, he continued, the GPU will also pay for the operating and maintenance services provided by RMKO to support ARII mining operational activities through its GPU subsidiaries after the realization of CCP development.

William also said that this collaboration was the implementation of the Company's strategy to collaborate with potential mines in South Sumatra.

"ARI is one of the leading coal producers in Indonesia that has reserves, it is proven that 229.8 million MT of coal," continued William.

Moreover, added William, Hub Mutara is an IUP area which has the second largest contribution from the total ARII reserves.

With this potential, this collaboration is expected to improve the operational performance of both parties.

RMKO targets to complete CPP development in the second half of this year so that this collaboration can already contribute to RMKO's financial performance.

In addition, this collaboration will also improve the group's financial performance in collaboration with the Mulia Kencana Chain and PT RMK Energy Tbk (RMKE).

"We will continue collaboration like this in the future by providing integrated logistics solutions to mining manufacturers in South Sumatra," concluded William.