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Wednesday, 21 October 09
DUTA GRAHA PLANNING TO DELVE INTO MINING SECTOR


The Jakarta Globe reported that, PT Duta Graha, one of the country’s largest private engineering firms, says it intends to diversify into the lucrative contract mining business next year, after signing an agreement with Australian contractor Macmahon Mining in August.

“The move is meant to enable the company to secure longer-term contracts,” Dudung Purwadi, Duta Graha’s president director, said on Tuesday during a media briefing.

On average, civil engineering contracts last between one and two years, while mining contracts can run for up to five years.

Duta Graha plans to use Macmahon’s expertise in contract mining to secure gold and coal extraction contracts in Indonesia.

“We think the coal and gold markets in Indonesia will continue to grow in the future,” said Djohan Halim, the firm’s corporate secretary. “We intend to secure some of the new coal contracts on offer as miners expand their production.”

He said the company expected to start mining work next year, and was eyeing a number of coal projects in Sumatra and Kalimantan.

“We aim to have at least one project with an annual production of one million tons,” he said.

The leader of the contract mining market at 42 percent is PT Pamapersada Nusantara, a unit of PT Astra International. Other major players include PT Darma Henwa, PT Bukit Makmur Mandiri Utama (Buma), and PT Thiess Contractors Indonesia.

Duta Graha hopes contract mining will contribute about Rp 1 trillion ($106 million) in revenue per year within five years.

The company’s shares closed up Rp 6, or 6.1 percent, to Rp 105 on Tuesday.
Source: The Jakarta Globe



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