Indonesia's MHU enters 1.5 mnt coal supply partnership with China's Shaanmei

PT Multi Harapan Utama (MHU), a subsidiary of MMS Group Indonesia, has forged a coal trading partnership with Shaanxi Shaanmei Supply Chain Management Co., Ltd.

This Memorandum of Understanding (MoU) underscores the commitment of both entities to engage in coal trading throughout 2024. MHU, among the prominent coal mining companies in Indonesia, is set to supply 1.5 million tonnes (mnt) of coal to Shaanmei, a leading coal importer in China.

The Chinese market, being one of the largest coal markets globally, offers substantial opportunities for MHU to bolster exports and fortify its position in the global coal trade. This endeavour aligns with MHU's aspiration to emerge as a dynamic and preeminent coal producer in Indonesia.

Moreover, MHU has consistently met its sales targets in recent years. In 2022, it made significant inroads into the Chinese market, securing a position among the top three coal exporters. This achievement was facilitated by collaboration between the Indonesian Coal Mining Association (APBI) and the China Coal Transportation and Distribution Association, supported by governmental efforts. The signing of the MoU underscores MHU's reliability and credibility in the international market, particularly in China.

Established in 2019, Shaanmei is a venture of Shaanxi Coal Industry Co., Ltd., a subsidiary of the state-owned mining group Shaanxi Coal and Chemical Industry Group, which holds a 51% stake, and CCS, a prominent coal trading company in China, owning the remaining 49%.

MHU operates as a coal mining company in Kutai Kartanegara Regency and Samarinda city, located in East Kalimantan province. Appointed by the Government of the Republic of Indonesia, MHU is tasked with coal mining activities, including exploration and operational production, under the Special Mining Business License (IUPK), an extension of the First Generation of Coal Contract of Work (CCoW).