Vanguard Mining Corporation has engaged PT Yudha Bahkti Menggala, an Indonesian logistics company, as an exclusive partner for logistics and sea transportation to handle shipment of construction sand, reclamation sand and other construction aggregates for the Singaporean construction market.
Vanguard Mining has partnered with several sand suppliers in Vietnam and Cambodia to provide construction and reclamation sands to Singapore and is working with Mega Kencana Persada (MKP), a company owning a 330-hectare limestone concession in Mandailing Natal, North Sumatra, to supply limestone to the Indonesian domestic and neighbouring export markets.
For limestone aggregate, in the first phase MKP plans to produce about 25,000 tonnes of crushed limestone per month during the first six months and 50,000 tonnes per month for the next six months, and generate approximately $11.25 million in revenues and $2,812,500 net income during the first year. Beginning the second year, it can increase annual production capacity to 1.2 million tonnes for export markets, with projected revenues of $30 million and net annual income of $7.5 million. The estimated limestone deposits of this concession are about 150 million tonnes.
While Vanguard is in the process of acquiring or cooperating with other producing mines in Vietnam and continuing exploratory work at the PT Cendrawasih gold concession in North Sumatra, the company will focus on working with MKP to go into production as soon as possible.
Vanguard’s president Jalani Haniffa says, “We are very pleased to have PT Yudha Bhakti Menggala as our logistics partner as we are moving forward with our sand supply business with Vietnam and Cambodia and getting ready to have our own production at MKP. We believe it is a win-win strategy and will create substantial benefits for shareholders of both companies.”
Vanguard Mining