Indonesian contract mining major PT Darma Henwa Tbk (DEWA) has won two new surface infrastructure projects for the major new lead-zinc underground mine under development in Dairi, North Sumatra, owned by PT Dairi Prima Mineral (DPM). The scope of surface works in the project include earthworks, civils/construction, as well as mechanical and electrical installations. Separately, China’s JCHX has a contract for the underground mine covering the main decline, air intake adit, air return adit, sublevel development, and auxiliary system work.

Dairi is an underground zinc mining project located in the Sopokomil area of the Dairi Regency which is part of the Indonesian province of North Sumatra some 150 km from the city of Medan. In addition to mining zinc sulphide ore, DPM will mine secondary galena ore which is the mineral form of lead sulphide as well as silver. The project is 51% owned by NFC Hongkong and 49% by PT Bumi Resources Minerals Tbk.

In the first project, DEWA won a tender for civil works and installations in section II of the lead-zinc mine. The value of this project has been agreed at $23.5 million. “Based on an open tender carried out last January in two locations, Jakarta and Xinjiang, Darma Henwa was decided as the winner of two other bidders from China. By this, we are confident that Darma Henwa is able to compete regarding to the competencies that we have,” said DEWA Chief Operation Officer of the Non-Coal Project Wisnu Wahyudin Pettalolo.

Wisnu explained that the working period for earthworks, civil/construction works, as well as mechanical and electrical installations at the lead-zinc mine will be for 12 months. According to plan, the project will start in June 2020.

Then in the second project, DEWA was appointed for additional construction works for retaining wall as well as mine roads and site levelling, at the same mine owned by DPM. For the initial stage, DEWA will begin the work of gabion retaining wall and slope strengthening. Subsequently, the mining road and site leveling will be carried out at a later stage.

At present, DEWA is still in the process of discussing with DPM the commercial, technical, and legal aspects of the additional project. “This new project is one of Darma Henwa’s efforts to develop business aside from coal sector, to strengthen Company’s business structure,” said DEWA Corporate Secretary Mukson Arif Rosyidi. He added that DEWA still has several potential non-coal projects in company’s pipeline. Furthermore, DEWA will continue to develop its non-coal business, to reinforce the business as an integrated mining services company.

This project is a continuation of the company’s previous works in DPM’s lead-zinc mine. At the end of March last year, DEWA had obtained a mine road access construction project there which was completed in October 2019.

The JCHX deal was signed in November 2019. DPM Chairman Ma Jinping, JCHX President Li Zhanmin and Teguh Utomo, Chairman of PT Focon Anggun Karya officially signed the contract respectively on behalf of three parties. This contract marks the official entrance into Indonesian market by JCHX, representing another breakthrough in its business development in overseas sector. The total JCHX excavation volume will be some 200,000 cubic metres and the contract period is for 21.5 months.