Publicly listed construction firm Nusa Konstruksi Enjiniring has partnered with Perth-based mining contractor MacMahon Holdings on the development of a gold and copper mine at Mount Tumpangpitu in Banyuwangi, East Java.
The $9 million deal bumps the total contract value the companies have secured between them over the past few years to $190 million, following construction work at the Martabe gold mine in North Sumatra, scheduled for completion in 2020.
"We are glad to have been trusted to handle the construction work with Macmahon at Tujuh Bukit mine. The first phase of construction will begin soon," Nusa Konstruksi Enjiniring corporate secretary Djohan Halim said in a filing to the Indonesia Stock Exchange (IDX) on Monday (13/11).
The Mount Tumpangpitu gold mine is operated by Bumi Suksesindo, a subsidiary of Indonesian miner Merdeka Copper Gold, which is affiliated with investment firm Saratoga Investama Sedaya. Saratoga is also affiliated to Jakarta Deputy Governor Sandiaga Uno, who holds a 27.8 percent stake in the company.
Bumi Suksesindo has yet to disclose when the construction work will be completed.
Macmahon, controlled by publicly listed Indonesian oil and gas company Medco Energi Internasional since July, owns the heavy equipment and provides contractor services for underground and open-pit mining.
The Martabe gold mine is controlled by Indonesian cigarette tycoons Michael and Budi Hartono, and palm oil tycoon Martua Sitorus, the owner of Wilmar International.
Djohan said a joint venture with Macmahon was deemed a strategic move to strengthen the company's ability and competitiveness on a national level, especially in the mining construction sector.
Nusa Konstruksi has been involved in construction work for more than 30 years, during which it has established various partnerships.
Aside from Macmahon, it has also set up a joint operation with Japan-based construction firm TOA Corporation for the development of a 2x1,000-megawatt steam power plant in Batang, Central Java.
Construction of the Batang power plant, which will be the country's largest, was at least 30 percent completed as of October.
Djohan said the company also formed a partnership with South Korea's Hyundai Engineering and Construction to build apartments, hotels and offices. These include GCNM Apartments in Central Jakarta and The Element in Kuningan, South Jakarta.
The company also joined hands with China Strait Construction and Development to erect Nusa Konstruksi's office tower in Jalan Jenderal Sudirman, Central Jakarta. The work is already 67 percent completed.
The company also established a partnership with Hong Kong-based construction firm CNQC International Holdings to build the Chadstone apartment complex in Cikarang, West Java.
"Business cooperation with global companies is very positive for us. We are also employing local workers on each project. As a local company, we are happy to participate to bolster the country's economic growth," Djohan said.
Source : Sarah Yuniarni/Jakarta Globe
14 November 2017