BEML to bid for contract mining with Indonesia's Sumber Mitra Jaya
05 Mar 2009
Defence public sector enterprise Bharat Earth Movers Ltd (BML), which has a strong presence in mining and construction equipment manufacturing has tied up with Sumber Mitra Jaya (SMJ) of Indonesia to bid for contract mining businesses opportunities arising out of the opening up of the coal blocks to the private sector in India.
Under the terms of the agreement BEML will make an investment of 30 per cent in the projcts and the Indonesian company will undertake the remaining 70 inverstments.
BEML's 30-per cent investment will also comprise supplying equipment, spares and services.
SMJ will take care of the rest of responsibilities including planning and execution of contract mining operations.
To strengthen this strategic alliance BEML Ltd is contemplating setting up a majority-owned local company in Indonesia jointly with SMJ to improve its export prospects for its range of mining equipment, spares, services and also for rebuild and rehabilitation of the equipment.
BEML has export orders of Rs.180 crores from the Indonesian Company.
The two companies recently signed an agreement for undertaking joint businesses during the visit of the speaker of Indonesian Parliament, Agung Laksono,as the leadr of an Indonesian business delegation to India.
