Petrosea clinches $214 million mining contract from Sinar Mas Group subsidiary
- Petrosea has been awarded a contract worth $214 million from Barasentosa Lestari for mining services.
- The contract spans five years and covers operations at a coal mine in North Musi Rawas Regency.
- This move is part of Petrosea's strategy to expand its market presence in the Indonesian mining industry.
In Indonesia, Petrosea, a mining services company backed by billionaire Prajogo Pangestu, was awarded a significant contract valued at 3.5 trillion rupiah, approximately $214 million. This contract was secured with Barasentosa Lestari, a coal company under the Widjaja family's Sinar Mas Group, to serve as the mining services contractor for a coal mine located in the North Musi Rawas Regency, which is situated about 600 kilometers northwest of Jakarta. The partnership is part of a broader strategy by Petrosea to expand its operations in the mining sector and enhance value creation in the South Sumatra region. The agreement entails a five-year agreement during which Petrosea will engage in mining activities at the Barasentosa Lestari’s site. The company operates under a concession covering over 23,000 hectares and is reported to possess nearly 190 million tonnes of coal reserves. This strategic move aligns with the increasing demand for coal in Indonesia’s growing economy while ensuring that Petrosea can leverage its engineering expertise to improve extraction and operational efficiencies. Previously, Petrosea had made headlines in April when it was awarded a lucrative contract worth 16 trillion rupiah, around $954 million, from the Indonesian arm of the Brazilian mining giant Vale. Winning multiple high-value contracts reflects Petrosea's strengthening presence in the mining industry and its commitment to developing strong partnerships with key players in the sector. Prajogo Pangestu, who has a reported net worth of $31.2 billion, is among Indonesia's wealthiest individuals and holds significant stakes in several companies, including Petrosea. The Widjaja family, who are partners in this current deal, also bring financial prowess to the table with a net worth of $18.9 billion. Their conglomerate, Sinar Mas Group, has diversified interests beyond mining, which span across real estate, paper production, financial services, telecommunications, and agribusiness, showcasing the depth and reach of their business operations.