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Resources Prima faces termination of coal-hauling service agreement
INDONESIAN coal miner Resources Prima Group said on Wednesday that its subsidiary Energy Indonesia Resources (EIR) has received a letter of termination from Coalindo Adhi Nusantara terminating the coal-hauling service agreement.
The agreement had been struck in October 2017, and was to be effective from Nov 1, 2017 for a duration of two years.
The company is currently seeking legal advice on the matter, including the validity of the letter of termination and any possible recourse it can get in accordance with the terms of the coal-hauling service agreement.
EIR is also exploring alternative coal-hauling contracts with other mine owners, the group said.
The termination of the agreement will have a material impact on the earnings per share and net tangible asset per share of the group for the current financial year ending Dec 31 as EIR is currently one of the main operating entities of the group.