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Saturday, 21 July 12
INDONESIAN COMPANIES ABM INVESTAMA AND AVRA ASIA WORK OUT LONG-TERM CONTRACT - THE JAKARTA GLOBE


The Jakarta Globe, one of the leading English news papaer in Indonesia reported that, ABM Investama, a company with diversified interests in coal mining, has secured a long-term contract to sell 15 million metric tons of coal to a unit of global commodity trader Avra Asia, according to a statement released on Tuesday.

The contact, which involves a deal between ABM’s unit Reswara Minergi Hartama and Avra Asia’s unit Avra Commodities, was signed on Friday. It is valid from this month through July 2017.

Through the contract, Avra Commodities receives exclusive rights to sell and market low-rank coal produced by ABM’s indirect unit sold under the trademark of TIA Compliant Coal.

TCC is produced by Reswara’s unit Tunas Inti Abadi, and Avra Commodities sells the coal to Thailand, the Philippines, Taiwan and select buyers in China.

Through the second quarter of 2012, Reswara secured a total coal sales contract of 3.5 million metric tons, which is more than 80 percent of its target for the year — 5.5 million metric tons.

Reswara’s relationship with Avra Commodities has been secured since April, when Reswara forged a deal to sell 935,000 metric tons of low-rank coal to the Avra-owned unit.

Reswara controls four mining concessions in South Kalimantan and Nanggroe Aceh Darussalam provinces. Those mines have combined coal reserves of 550 million metric tons.

ABM Investama is controlled by the Hamami family, one of the wealthiest families in Indonesia and the owner of the Trakindo Group.

ABM Investama has interests in coal and power.
Source: Francezka Nangoy The Jakarta Globe


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