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Jakarta - 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.