Delta Dunia Makmur Subsidiary Signs New Coal Mining Contract in Australia

A subsidiary of PT Delta Dunia Makmur Tbk (DOID), namely PT Bukit Makmur Mandiri Utama (BUMA) through BUMA Australia Pty Ltd will carry out new mining for Bowen Coking Coal, a company listed on the Australian Stock Exchange (ASX). The project will later mine Broadmeadow East semi-hard coking coal with a value of AUD 320 million for a period of 3 years and an option for an extension of 1 year.

President Director of PT Delta Dunia Makmur Tbk Ronald Sutardja explained that the project is located 25 km northeast of the town of Moranbah in Queensland’s Central Bowen Basin. Later this project will produce 4.8 Mtpa of ROM coal for four years.

“BUMA Australia’s performance and track record has strengthened relationships with our existing clients. The Company’s business strength allows us to continuously seek new contracts. We thank the entire BUMA Australia team for securing a second contract in the last five months since our acquisition. on Downer Mining East in December last year,” he said in a written statement, Saturday (14/5/2022).

He explained that from a track record, BUMA Australia has operated for 10 years in BMA’s Blackwater coking coal and 14 years in BMA’s Goonyella coke. Meanwhile, on February 22, 2022, his party has received a new contract extension worth AUD 550 million for 5 years at the BMA Blackwater mine.

“This new contract also confirms Delta Dunia Makmur’s strategy to remain committed to providing mining services from upstream to downstream and continue to strengthen business lines in Indonesia and Australia,” he said.

Not only related to these breakthroughs, Ronald Sutardja also described a number of achievements that have been obtained by Delta Dunia Makmur throughout 2021.

In terms of revenue, he said revenue and EBITDA rose 51% and 43% YoY to USD 911 million and USD 234 million, respectively. The volume of overburden stripping also presents a positive performance.
“The volume of overburden removal (OB) and coal production increased YoY by 16 percent and 19 percent, respectively, to 326 million BCM and 54 million tons of coal,” he said.

He explained that his party was actively involved in managing funding positions with more than 60% obligations due in 2026 or more. As well as completing the addition of more than 880 million BCM of overburden removal and more than 119 million tons of coal production to its order book through new contracts and contract extensions.

The company has also completed the acquisition of Downer Mining East and an Australian Tier 1 mining contractor which can increase BCM and annual revenue by up to 50%.

“The company has started to diversify its commodities, through the acquisition of a 15.4% stake in Asiamet Resources with a portfolio of copper and polymetallic projects in Indonesia,” he concluded.

Read more: https://finance.detik.com/energi/d-6078193/anak-usaha-delta-dunia-makmur-teken-kontrak-tambang-batu-baru-di-australia