Jakarta,- BUMA Australia Pty Ltd, a subsidiary of coal miner Delta Dunia Makmur (DOID), has secured a contract extension for its mining operations at the Meandu Mine in Queensland, Australia. The mine is owned by TEC Coal Pty Ltd, a subsidiary of Stanwell Corporation. The extended contract, valued at AUD 200 million annually (approximately IDR 2 trillion), will be in effect until June 2026.

Under the renewed agreement, BUMA Australia will maintain its current operational scale, producing around 35 million bank cubic meters (bcm) annually and approximately 7 million tons of coal. "This contract extension reflects BUMA Australia's critical contribution to our clients' success and reinforces our commitment to long-term partnerships," said DOID Director Dian Andyasuri in a statement on Thursday.

BUMA Australia has managed Meandu Mine operations since 2021, covering mine planning, drilling, blasting, coal mining, and coal handling and processing plant management. The company is also responsible for civil works, mine rehabilitation, and equipment maintenance.

Delta Dunia Makmur Finalizes USD 122.4M Purchase of US Anthracite Miner ACG

"We are committed to employing local workers and fostering a diverse and inclusive work environment," Colin Gilligan, CEO of BUMA Australia said.

Meanwhile, DOID posted a net loss of USD 26.58 million (approximately IDR 432.27 billion) for the first half of 2024, a reversal from the USD 4.92 million profit achieved in the same period last year.

DOID’s revenue declined slightly by 0.24 percent to USD 854.97 million in the first half of 2024, while the cost of revenue increased by 2.71 percent to USD 781.12 million, resulting in a 23.56 percent drop in gross profit to USD 73.85 million. The sharp rise in financial expenses and foreign exchange losses were key contributors to the decline.

Despite these challenges, DOID's management remains optimistic about recovery, driven by cost normalization and a 15 percent year-on-year increase in operating cash flow. 

In June, Delta Dunia finalized a major acquisition deal in the United States. Through its subsidiary, American Anthracite SPV I LLC, DOID has signed a stock purchase agreement (SPA) to acquire Atlantic Carbon Group Inc (ACG), the second-largest producer of UHG anthracite in the US for USD 122.4 million (IDR 2 trillion).

Sources : www.djakarta-miningclub.com Oct 03.24