Manage Mining In Australia, World Subsidiary Delta Makmur Wins IDR 598.7 Billion Contra

Mining illustration (Photo: dock. Antara)

JAKARTA - A subsidiary of PT Delta Dunia Makmur Tbk (DOID), PT Bukit Makmur Mandiri Utama (BUMA) through its subsidiary in Australia, BUMA Australia Pty Ltd (BUMA Australia) has obtained a new contract from BHP and Mitsubishi Alliance (BMA) to provide mining services at the Saraji mine, a metallurgical coal mine (metalllurgical coal) located in Bowen Basin, Queensland in central, Australia.

The contract from BMA worth AUD60 million or equivalent to Rp598.7 billion is valid for a contract period of more than 18 months with an estimated annual production average of around 7 mbcm pa BUMA Australia will mine a new mining site (pit) which will be opened at the Saraji Mine by BMA.

Saraji's mine was first developed in 1974 and is one of the largest coal mines in Australia with coal reserves that can be regained. The contract also includes an option for an additional 18 months of extension.

DOID President Director Ronald Sutardja is happy to be able to expand his partnership with BMA and has been selected for this new contract to provide mining services at the Saraji mine.

"This contract is proof of the World's unshakable Delta commitment to expanding its portfolio and enhancing our metallurgical coal mining activities. We are proud to be able to strengthen our position as industry leaders and look forward to contributing to the success of our clients and encouraging our business growth," he said, citing information disclosure, Sunday, April 16.

In 2022, the Company has succeeded in expanding its portfolio diversification through the expansion of metallurgical coal mining operational activities (metalllurgical coal), which accounts for 13 percent of the Company's revenue, while the remaining 87 percent comes from thermal coal mining operations (thermal coal).

In the future, the Company will continue to be dedicated to further improve business diversification by focusing on increasing rehabilitation activities for mining sites and developing infrastructure projects in Indonesia.

In addition, the Company is also committed to reducing its dependence on thermal coal so that the group revenue from thermal coal is less than 50 percent in 2028. All these efforts are in line with the Company's dedication in carrying out environmental management commitments, social responsibility, and strong governance.

The Company is also committed to carrying out sustainability efforts consistently by referring to the principles of solid Environment, Social and Government (ESG).

This new contract confirms Australia's BUMA leadership in Bowen Basin. Currently, BUMA Australia provides initial mining services in pre-strip and coal mining activities at three BMA mines in Queensland: Blackwater, Goonyella Sunget, and Saraji. In addition, BUMA Australia provides coal mining services at Broadmewow East and Burton Mines owned by the Bowen Coking Coal company.

Colin Gilligan, CEO of BUMA Australia, said coal producers and suppliers of Australia's largest trans-ocean metallurgical coal. The contract award affirms customers' continued confidence in professionalism and a significant contribution to their business growth.

"This also reflects the extensive track record of the Australian BUMA professional team in providing safe, efficient, and consistent mining services for the BMA coal mining project," he said.

This contract extension is expected to further strengthen the Company's track record and support the Company's sustainable growth, along with the record success of business performance in 2022 in all operational areas:

- In 2022, the Company recorded the best financial performance during the Company's operations by posting revenue (revenue) of USD1,554 billion and net profit (net profit) of USD29 million.- Overburden removal reached 547 mbcm in 2022, an increase of 68% year-on-year.- Coal production also increased to 87 million tons in 2022, an increase of 61% year-on-year.- The Company actively manages debt position, reducing net debt to EBITDA from 3x in 2021 to 2x in 2022, with about 60% of these debts due in 2026 or thereafter.