BUMA Awarded Contract Worth Over Rp 7 Trillion
PT Bukit Makmur Mandiri Utama (Buma) The subsidiary of PT Delta Dunia Makmur Tbk (DOID) has just signed a new mining service contract with an estimated contract value of over Rp 7 trillion.
The mining service contract was signed with PT Tanah Bumbu Resources, a subsidiary of Geo Energy Resources Limited. “The value of this contract is estimated to reach more than Rp 7 trillion or equivalent to more than US $ 500 million,” wrote the management of DOID in an official statement on Thursday (8/3/17).
The mine is adjacent to another Geo Energy concession area, PT Sungai Danau Jaya. Buma has also signed a contract with the mine that has been operating since 2015. Geo Energy is an integrated coal mining business group and listed on the Singapore Stock Exchange.
The location of the adjacent Tanah Bumbu and Sungai Lake mines is expected to optimize operational efficiency in both mine sites. The operation of Tanah Bumbu will commence in March. While production is expected to begin to be seen in the second quarter of 2018.
This contract is expected to strengthen the relationship between BUMA and Geo Energy which is a fast growing coal mining company with good growth potential in the future. This contract is also in line with BUMA’s strategy to always focus on long-term sustainability and profitable growth.