RMKO Working On Construction Of 2 Gorby Mining Facilities Worth IDR 61 Billion

JAKARTA - PT Royaltama Mulia Konthorindo Tbk (RMKO) continued its second collaboration with PT Atlas Resources Tbk (ARII), through its subsidiary PT Gorby Putra Utama (GPU) to build and operate Coal Crushing Plant (CCP) 2 and other supporting mining facilities and provide coal logistics services upstream.

The President Director of the Company, Vincent Saputra, explained that this collaboration was carried out together with the Business Group PT Chain Mulia Kencana (RMK) which will finance the construction of CCP 2 with a capacity of 650 tph and other supporting facilities in the GPU mining area worth IDR 25 billion.

"In the previous collaboration, RMK also funded the construction of CCP 1 of Rp36 billion, so that the total funding disbursed by RMK in this project was Rp61 billion," he said, Wednesday, July 24.

For this cooperation, the GPU will pay the return of funding to RMK based on the amount of production according to the agreement of 200 thousand MT of coal per month and the purchase of coal using the FOB barge mechanism from CCP 2 production.

In addition to payments to RMK, the GPU will also pay services to RMKO from the volume of coal services obtained from CCP 1 and 2 with a total of 400 thousand MT of coal per month including stockpile management, dump truck loading, hauling, loading barges to the provision of heavy equipment and maintenance.

This second collaboration will take effect for 60 months since the handover of CCP 2 by RMKO to the GPU and can be extended based on the decisions of the parties.

Vincent added, saying that this collaboration is a form of implementation of the RMKO strategy to optimize the mining service business through increasing the company's asset utilization by looking at new opportunities outside the mining area of PT Truba Bara Banyu Enim (TBBE) in Enim Regency, South Sumatra.

We see that the South Sumatra area still has a great opportunity to optimize its coal production with more integrated infrastructure development. Armed with the experience we have carried out in our main operational area in the Enim and the RMK Group collaboration, we believe we can optimize coal production in ARII's mines. RMKO is here as a coal logistics solution upstream with more integrated facilities to optimize the production volume of mines that have a bottletracking issue due to infrastructure, "explained Vincent.

On the same occasion, the Director of Operations of the Company, William Saputra also explained that with the potential for additional new generator revenues originating from the ARII mining area.

"We are very optimistic that we will maintain sustainable operational and financial performance growth, not only RMKO but also RMK Group Indonesia. We are also targeting to complete the construction of CPP 1 and 2 in the second half of this year so that this collaboration can already contribute to RMKO's financial performance," explained William.