BEML, Indonesian firm tie up to bid for contract mining in India

04 March 2009

Public sector heavy earth moving equipment maker BEML Ltd has entered into an agreement with Indonesia's Sumber Mitra Jaya to jointly bid for contract mining in India.

The two companies signed the agreement in New Delhi on Monday during the visit of an Indonesian business delegation.

The BEML-Sumber Mitra consortium will bid for upcoming auction for contract mining of coal blocks in India.

The consortium approach includes agreement for investments in contract mining wherein 30 per cent of the investment will be made by BEML and 70 per cent by SMJ.

BEML said it formed the consortium as the requisite experience in coal mining was a prerequisite for participating in the tender.

''BEML's investment will mostly comprise of equipments, spares and services; Sumber Mitra Jaya will take care of the rest of responsibilities, including planning and execution of contract mining,'' the release said.