The Company delivers mining contracting services through its subsidiary, PT Pamapersada Nusantara (Pama), with the largest revenue market share in Indonesia achieving 41%. Pama's current customers consist of some of the largest coal mining operators in Indonesia, such as PT Adaro Indonesia, PT Indominco Mandiri and PT Kaltim Prima Coal (KPC).

During the year, Pama had successfully produced coal to an amount of 54.3 million tons, and overburden removal to a volume of 354.0 million bcm, indicating an increase of 28% and 4% from the position of 2006 that amounted to 42.5 million tons and 339.5 million bcm.

The increase was due to the highly increasing global demand of coal, pushing the price into US$90.45 per ton. The high price had urged coal operators in Indonesia to boost their production and induced other investors to enter the sector. Apart from the existing customers, Pama successfully entered into new coal mining contracts with PT Trubaindo Coal Mining, for the period of 4 years extendable and production plan of 2-3 million tons on the first and second year, and gradually will increase up to 5 million tons per year.

In April 2007, Pama acquired PT Dasa Eka Jasatama (DEJ), a coal mining concession located in Rantau, South Kalimantan, whose coal sales volume achieved 3.6 million tons by the end of the year. With the inclusion of DEJ within its structure, Pama recorded net revenue of Rp9.5 trillion, consisted of Rp7.9 trillion generated from mining contracting activities and Rp1.6 trillion from DEJ coal sales.

In line with the increase in production activity, Pama has increased its fleet of operational heavy equipment from a total unit of 1,199 in 2006 to 1,324 units in 2007. The type of heavy equipment operated in 2007 among others consisted of 118 bulldozer units, 156 excavators/shovel units, 780 dump truck units and 115 prime mover units.

To enhance its competence and achievement as market leader in domestic mining contracting business, Pama conducted a series of strategic and tactical steps to support its field operation. For example, assembling and commissioning units were established in KPC project to provide operational support for the largest excavators with bucket capacity of 29 cubic meters. Recruitment and training programs for mechanics and new operators are conducted with the objective of delivering high productivity as well as efficiency with zero accident rate.

In September 2007, Pama has carried out initiatives to strengthen their financial position by signing a syndicated loan facility amounted US$425 million from a 23 syndicated bank. The loan consists of US$290 million term-loan facility and US$135 million revolving credit facility. Apart from financing the supply of newly acquired equipment, the loan was also designed for the settlement of previous loan facilities at their maturity dates. The new loan scheme has lower interest rates, hence achieving a lower funding cost for the Company which will assist future expansion plans.

For his leadership and remarkable achievement, the President Director of Pama, Sudiarso Prasetio, was acknowledged to receive one of Raja Ida Tjokorda Denpasar IX Awards 2007. Pama's performance was also recognized through Investment Award 2007 for the category of company with big scale domestic investment.