IATA and UNTR Subsidiaries Undertake First Coal Mining Development in Musi Banyuasin
Thu 08 Jan 2026, 03:11 AM
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PT MNC Energy Investments Tbk (IATA) today officially held its 1st Digging Ceremony, marking the start of the mining operational phase.
This follows the signing of a Mining Contractor Agreement in late December 2025 between IATA’s subsidiary, PT Arthaco Prima Energy (APE), and mining contractor PT Kalimantan Prima Persada (KPP Mining), a business unit of PT United Tractors Tbk (UNTR) under the Astra Group.
IATA President Director Suryo Eko Hadianto said the strategic collaboration with KPP Mining strengthens IATA’s technical fundamentals and operational excellence, while laying a solid foundation for significant production growth in the future.
“The momentum of today’s 1st Digging Ceremony underscores IATA’s and KPP Mining’s commitment to delivering ambitious production targets while creating sustainable value for all stakeholders,” he said in an official statement on Thursday (January 8, 2026).
With a contract value of IDR 5 trillion and a five-year cooperation period effective from January 2026, this coal mining services agreement serves as a strategic pillar to strengthen IATA’s production capacity and operations in APE’s Production Operation Mining Permit (IUP-OP) area in Musi Banyuasin Regency, South Sumatra.
The 1st Digging Ceremony marks a key milestone in accelerating IATA’s coal output, supporting an initial target of around 3 million metric tons (MT) in 2026 and medium-term potential to increase to up to 7 million MT per year as operations scale up.
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