BEML in pact with Indonesian firm for mining biz.

BEML Ltd, the public sector mining and construction equipment manufacturer, has entered into a partnership with Sumber Mitra Jaya (SMJ) of Indonesia to bid for a contract mining business in India. The two companies have entered into an agreement to meet the qualification to bid for the tender, which is to be opened in April.

Under the eligibility norms, only a consortium that has mined 10 million tonnes of coal in the last two years can participate in the tender. SMJ, the flagship of Indonesian Group Mitra Jaya, has wide expertise in contract coal mining and production. The consortium approach includes agreement for investments in contract mining, with BEML holding 30 per cent stake in the joint venture.

BEML’s investment will include equity participation by way of cash and equipment, spares and services while SMJ will take care of the other responsibilities including planning and execution of contract mining. A formal joint venture would be formed after the outcome of the tender.

BEML is also exploring the possibilities of setting up a company in Indonesia to improve the export prospects in association with SMJ. Currently, BEML has export orders worth Rs 180 crore from Indonesia.crackcrack