ABM Investama Subsidiary Cipta Kridatama Secured a US$ 300 Million Mining Contract with PT Riau Baraharum

Jakarta, March 5, 2012 – PT Cipta Kridatama, a subsidiary of PT ABM Investama Tbk. (IDX: ABMM) that operates in mining contractor service just signed a new contract with PT Riau Baraharum with value of around US$ 300 million. PT Riau Baraharum is a subsidiary of PT Permata Energy Resources, which had obtained legal mining license (PKP2B) and other licenses including a forest-lending permit in Indragiri Hulu and Indragiri Hilir regency, Riau province.
 
With the contract signing, Cipta Kridatama will provide mining contract services to PT Riau Baraharum for the next five years with scope of work including land clearing, overburden removal, and heavy machinery rentals. 

 
“The new US$300 million contract signing in early 2012 is an outstanding achievement for Cipta Kridatama. Thus, we have managed to obtain a multiyear contract that will give us a more stable and secured revenue stream for the next five years. Furthermore, the contract encourages us to maintain and improve the quality of our service for our business partners.
 
As a company that is committed to uphold and enhance operational excellence in mining process, we consistently ensure that the company has competent human resources, maintained equipment, accurate business processes and mining methods that is in accordance with the safety, health and environment guideline (K3L),” said PT Cipta Kridatama President Director Boedi Santoso.
 
“We are very proud of Cipta Kridatama’s achievement as one of the key driver of ABM’s business, where Cipta Kridatama had booked a very strong performance within the past years, and this new contract showed a strengthening trust of its partners. We are optimistic that Cipta Kridatama will be able to achieve the growth target that has been planned, and also able to give a significant contribution to ABM’s business growth in the future,” added PT ABM Investama Tbk. President Director Andi Djajanegara.
 
To date, Cipta Kridatama had secured mining contract services on nine mining concession in Indonesia with partners, who are major mining industry players. The mining contracts last for at least three years; there are even several mining contracts which expand for the duration of the life of mines. Cipta Kridatama’s overburden removal performance achievement in 2011 is approximated to reach more than 118 million BCM (Bank Cubic Meter), which equals to around18% increase year-on-year (YoY). This accomplishment is supported by the strategic business management and good cooperation among companies in ABM Group. Cipta Kridatama’s parent company ABMM was officially listed on the Indonesia Stock Exchange (IDX) on December 6, 2011. The IPO process, which was done by the corporation, has succeeded in collecting Rp 2.1 trillion, with 1.5 trillion channeled to ABMM and the rest was returned to Tiara Marga Trakindo (TMT) as the results of TMT’s divestment to public.
 
From the accumulated fund received by ABMM, aside from loan payment, 70% of the fund will be used to finance ABMM’s subsidiaries expansion, and the rest of 6% goes to working capital.
 
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About ABM
PT ABM Investama Tbk (ABMM), traded publically since 2011 with ABMM as its stock code, is an integrated energy company doing strategic investment in the energy-related sector, including resources, services and infrastructure. ABM provides integrated energy solutions with business synergy centered in three key business units in coal production, mining contract services, and electrical power solutions. These primary business units are supported by important business components such as engineering services and integrated logistics services.


In 2009, ABM acquired a majority share in companies under Group Tiara Marga Trakindo (TMT). As one of the largest national groups in Indonesia and active in the heavy equipment industry for 40 years, TMT continues to advance toward service industry leadership within the energy sector. This reorganization further strengthens ABM as a strong holding company that provides direction and strategic planning to support the business of each subsidiary.
 
As a holding company, ABM’s role is to both integrate its subsidiaries and make strategic investments in an effort to empower business units and provide added value to stakeholders. Over the past two years, ABM has been successful in expanding its business through strategic investments in each subsidiary. There are presently 11 new subsidiaries grouped under five ABM business units.
 

About Cipta Kridatama
 
Founded on April 8, 1997, PT Cipta Kridatama is one of Indonesia’s largest mining services provider with pit-to-port services to the nation’s coal producers, including operational services at all production levels.

Established as one of the divisions in PT Trakindo Utama as a tenant of heavy equipment rental and used heavy equipment sales, Cipta Kridatama have now turned into the most trusted integrated mining contractor in Indonesia. As of June 30, 2011, Cipta Kridatama is supported by more than 2,800 employees who are competent in the industry and have a fleet of more than 400 heavy equipment and its supporting equipment for mining activities, in accordance with mining permit No. 904/30/DJB/2011 dated July 4, 2011. As a mining contractor, Cipta Kridatama is very concerned about the safety factor and always focused on efficient and effective mining process through and integrated management and controlled business process, referring to Balanced Scorecard Method. In order to maintain its commitment to become a ‘Green Company’, Cipta Kridatama always ensure that the production operations carried out in a friendly environment through a careful post-mining waste management and post-mining rehabilitation program. Cipta Kridatama’s achievement to obtain ISO 9001:2008, OHSAS 18001:2007, and ISO 14001:2004 is a testament to company’s commitment in maintaining the highest standards in management quality, health, safety and environmental management guideline.