Darma Henwa (DEWA) Extends Mining Contract with Arutmin Worth IDR 10.5 Trillion
Tue 20 Jan 2026, 12:38 PM
Share
PT Darma Henwa Tbk (DEWA) has signed an extension of its mining services contract with PT Arutmin Indonesia for the Kintap and Asam-Asam projects, with an estimated value of IDR 10.5 trillion. The agreement was signed on January 19, 2026, and will run for the life of mine.
Darma Henwa said the contract covers core activities including overburden removal, coal getting, and coal hauling at mine sites located in Tanah Laut Regency, South Kalimantan.
Under the new contract, the company will strip approximately 252 million bcm of overburden and produce around 50 million tonnes of coal for Arutmin over the mine life, starting January 2026.
In the previous contract, Darma Henwa’s average annual output at the Asam-Asam project was 17.3 million bcm of overburden and 3.8 million tonnes of coal. At Kintap, average overburden removal reached 25.3 million bcm with coal production of 3.8 million tonnes per year.
Darma Henwa Director Ricardo Silaen said the extension provides long-term operational certainty for the company and will have a positive impact on financial performance.
“This contract extension provides long-term operational certainty for Darma Henwa and Arutmin and has a positive impact on our performance. It reflects Arutmin’s confidence in our mining capabilities and capacity, as well as our adherence to Good Mining Practice. We remain committed to operational excellence with a zero-fatality target,” Ricardo said in an official statement on Tuesday (January 20, 2026).
In a disclosure to the Indonesia Stock Exchange, DEWA’s management stated that the life-of-mine contract does not have a negative material impact on the company’s operations, legal aspects, or business continuity. On the contrary, it provides long-term certainty for operational activities and contributes positively to the company’s financial condition.
The company also stated it has passed the “rewriting the future” phase, marking a successful turnaround from performance pressure to profitability in a relatively short time. This achievement forms the foundation for entering the next phase—“reshaping the future”—with a focus on more progressive, efficient, and digitalized business expansion.
Aligned with its long-term strategy, Darma Henwa is committed to strengthening competitiveness through sustainable business expansion, leveraging digitalization, consistently applying good mining practices, and promoting the use of electric vehicles (EVs) as part of future mining operations.
Advertisement
