Mar 29, 2011

WIKA grabs project from Adaro Indonesia

One of Indonesia's largest thermal coal PT Adaro Indonesia has finally mandated PT Wijaya Karya Tbk (WIKA) as a contractor to install and manage overburden crushing and conveying system with a total contract of US$175 million.
Adaro Corporate Secretary Devindra Ratzarwin, in an official statement submitted to Indonesia Stock Exchange (IDX) today, said Adaro Indonesia, a wholly owned subsidiary of PT Adaro Energy Tbk (ADRO), entered into agreement with Wijaya Karya on March 25 2011.
By installing the system, Adaro expects it will improve efficiency regarding to the manage overburden removal as well as maintain its annual production growth.
In parallel with the appointment, Adaro Indonesia also signed an agreement of equipment procurement with FLSmidth Spokane Inc.
Previously, Adaro Indonesia aimed to build overland conveyor belt. The company had also appointed PT Tripatra Engineers & Construction for the project.
However, Adaro had dropped the project of overland conveyor belt. "We don't have any constraint to build overland conveyor belt. But, we see that the project could benefit us," Devindra said in October last year.

Disclosure: No position at the stock mentioned above.  

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