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nergy solution provider PT ABM Investama Tbk (ABMM), through wholly-owned subsidiary PT Cipta Kridatama, has secured a mining contract worth US$300 million and is expecting to obtain at least one more contract this year to achieve its business targets.

Cipta Kridatama signed the contract from PT Riau Baraharum, a subsidiary of PT Permata Energy Resources, which holds a legal mining license (PKP2B) and other licenses, including forest-lending permits in Indragiri Hulu and Indragiri Hilir regencies in Riau.

Cipta Kridatama’s mining services for Riau Baraharum will include land clearing, overburden removal and heavy machinery lending for five years.

“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 to give a significant contribution to ABM’s business growth in the future,” ABM president director Andi Djajanegara says.

Cipta Kridatama had secured mining contract services on nine mining concessions of major mining industry players, the company said. The company performed overburden removal of about 118 million bank cubic meter (bcm) of land in 2011, about an 18 percent increase from 2010.

ABM director of corporate strategy Yovie Priadi said that the parent company expected Cipta Kridatama’s overburden removal would increase by 20 to 25 percent this year, reaching to 150 million bcm.

“For the growth, we need new contracts. We are targeting [Cipta Kridatama] to secure two or three new contracts this year. Given the one contract secured from Riau, Baraharum, we will need to secure at least one more new contract,” Yovie told The Jakarta Post on Sunday.

Yovie said that ABMM would focus on long-term contracts with overburden removal volume of 20 million bcm to 35 million bcm per year.

He said that the mining contract business run by Cipta Kridatama was the main contributor to ABM’s revenue, contributing about 35 to 40 percent. “In the future we want to see the Cipta Kridatama contribution stands at about 30 to 35 percent and other businesses give a higher contribution than now,” he said.

ABM, whose president commissioner is Rachmat Mulyana Hamami — a son of the 10th richest man in Indonesia according to Forbes Achmad ‘Met’ Hamami — has four other subsidiaries; coal producer PT Reswara Minergi Hartama, power solution company PT Sumberdaya Sewatama, logistic company PT Cipta Krida Bahari and engineering service provider PT Sanggar Sarana Baja.

“Coal mining in South Kalimantan has started production and produced 2 million tons to 2.5 million tons of coal in 2011. We hope that coal production will double this year, with expected contribution from mining in Aceh, which will start the initial production in the second quarter,” Yovie said.

He added that ABM was always looking for possibilities to increase its coal reserves, including through acquisition.

ABM also intends to develop its power business through Sumberdaya Sewatama, which acquired 20 percent shares in South Sumatra based PT Metaepsi Pejebe Power Generation in 2010.

Yovie said that his company targeted two more acquisition for its power business. “We hope that deals on the acquisitions will be closed this year. Both are in Sumatra,” he said.