FLSmidth Gains $135Mln Deal to Supply Equipment to Indonesian Coal Mine

March 25, 2011 - PRLog -- FLSmidth said Friday that it had signed a contract in Jakarta, Indonesia, worth over $135 million with PT Adaro Indonesia to supply material handling equipment to its coal mine in the Tanjung district of South Kalimantan.

PT Adaro Indonesia is a subsidiary of PT Adaro Energy Tbk, and the coal mine where the equipment will be used is in the Tanjung district of South Kalimantan, some 1,000 km from the Indonesia capital, Jakarta.

The Danish-based global engineering company said the material handling equipment for the mine will support Adaro's expansion of its mining operations and will lower the average hauling distance of some trucking operations as well as reduce the company's dependency on oil.

The contract comprises an out-of-pit overburden crushing and conveying system, consisting of FLSmidth ABON sizers, RAHCO overland conveyors and RAHCO mobile stacking conveyors for carrying coal and material from the mine.

The company said in a statement that the system has a capacity of 12,000 tonnes per hour and an annual overburden volume of 40 million bank cubic metres.

The contractual elements regarding construction, supervision and management, as well as field service, will be provided by FLSmidth Indonesia.

"This material handling contract is the first in Indonesia and reflects a growing market in the region, particularly in the minerals sector where mining companies are expanding," said FLSmidth Group CEO Jorgen Huno Rasmussen.

FLSmidth said that the order will "contribute beneficially" to the company's earnings until the end of 2012.

Author: Paul Chapman, analyst.

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