BEML, a public sector mining and construction equipment manufacturing company, has entered into an agreement with Sumber Mitra Jaya (SMJ) of Indonesia to bid for upcoming contract mining businesses in India. An agreement to this effect was signed between BEML and SMJ in New Delhi on Monday.
The consortium approach includes agreement for investments in contract mining wherein 30 per cent of the investment will be made by BEML and 70 per cent by SMJ. Whereas BEML's investment will also comprise equipment, spares and services; Sumber Mitra Jaya will take care of planning and execution of contract mining. This strategic alliance of BEML with SMJ, evokes significance keeping in view large scale emerging opportunities arising out of the opening up of the coal blocks to private players to undertake contract mining, the company said in a statement.
BEML is also exploring the possibilities of establishing a company in Indonesia to improve the export prospects in association with SMJ, Indonesia as the local minority partner, looking at huge business opportunities for mining equipment, spares, services and also for rebuild and rehabilitation of the equipment.
Currently, BEML has export orders worth Rs 180 crore from Indonesian company.
