Indonesian mining contracting firm Antareja Mahada Makmur (AMM) has expanded into coal mining after signing a mining services contract with Indonesian coal mining company Dizamatra Powerindo.

AMM has mainly been involved in nickel mining, holding mining contracts with mining companies Vale Indonesia and Kember Emas Sutra, AMM said.

Under the mining contract, AMM will manage key aspects of Dizamatra Powerindo's coal mine in Lahat, southern Sumatra. AMM will be responsible for overburden removal, coal mining, transportation, and run-of-mine (ROM) management. The mine started commercial operations in 2020, with an estimated 150mn t of coal reserves.

It produces GAR 4,750 kcal/kg coal, which is sold domestically and exported.

The company is already working on preparatory work for the transfer of mining operations and it is expected to start commercial operations by early 2026, AMM said. It aims to ramp up production to reach 7mn t/yr of coal but did not specify a timeline.

Some of the coal produced will be exported, but the majority will be used to supply the fuel needs of Dizamatra Poiwerindo's sister company, Priamanaya Energy's Keban Agung 270MW coal-fired power plant, also located in Lahat.