Integrating Supporting Facilities, CUAN Subsidiary Smooths Metallurgical Coal Production

Coal (photo: dock. intermediate)

JAKARTA - A subsidiary of PT Petrindo Jaya Kreasi Tbk (CUAN), PT Daya Bumindo Karunia (DBK) has produced metalurgi coal in an operational area in Central Kalimantan as of December 2024.

This metallurgical coal production by DBK is part of the diversification of the Petrindo portfolio which strengthens its position as a holding company in the coal processing industry.

"Integration of production facilities in the operational area of Petrindo's subsidiary, namely DBK, is a strategic step carried out by the Company. Infrastructure development such as roads, office areas and fuel storage warehouses will facilitate future production and transportation activities of DBK," said President Director of Petrindo, Michael quoting information disclosure, Jakarta, December 30.

Currently, DBK is also integrating production facilities through the construction of office facilities, fuel storage warehouses, employee residences as well as DBK mining road infrastructure facilities along zg149 KM which connects DBK's operational areas with stockpile intermediate locations.

Integration and construction of facilities belonging to DBK were carried out by another Petrindo subsidiary, namely PT Petrosea Tbk (Petrosea) as an integrated multidisciplinary mining contract and EPC.

Previously, in June 2024, Petrosea had signed a mining infrastructure development service agreement with DBK as an implementation of a long-term strategy that includes business development and business expansion. Transactions carried out are in line with the PJK group's long-term strategy, namely to create synergies and expand business networks.

In addition to mining roads, Petrosea also provides other supporting infrastructure work services to DBK, such as the construction of employee camps, offices, warehouses, fuel storage and jetty, as well as mining services that include overburden removal and coal production activities.

All operational activities and construction of these facilities are funded by credit facilities from PT Bank Negara Indonesia (Persero) Tbk which were obtained on December 23, 2024, with a maximum facility value of IDR 2.43 trillion.

"Petrosea, which is a subsidiary, is the main contractor for the construction of this facility, this shows good synergy which will later contribute positively to the bottom line from the Company," added Michael.