ZHONGZHENG INTL signs a new coal mine cooperation agreement

ZHONGZHENG INTL (00943.HK) announced the immediate termination of its previous contracting agreement with the former contractor on October 18. On the same day of termination, the group entered into an exclusive cooperation agreement dated October 14 with the new contractor PT Barindo Multi Sejahtera (BMS). According to the BMS agreement, BMS will carry out all production activities at the PT Bara coal mine.

Under the BMS agreement, BMS is required to conduct all production activities, including pre-production, production, sales, and post-production operations, and bear all costs related to the aforementioned operations, including but not limited to operating costs, land acquisition costs, reclamation and infrastructure costs, taxes, and other government expenditures. BMS is also responsible for achieving the agreed minimum production targets and paying net royalties to PT Bara as stipulated in the BMS agreement. In return, BMS is entitled to receive the total sales amount.

Among them, the production target is at least 450,000 tons from the first year to October next year, with production gradually increasing from 25,000 tons per month to 50,000 tons; and in subsequent years, at least 900,000 tons annually, or at least 75,000 tons per month