PT Delta Dunia Makmur Tbk. (the "Company") announced that its subsidiary, PT Bukit Makmur Mandiri Utama ("BUMA"), through its Australian subsidiary, BUMA Australia Pty Ltd ("BUMA Australia"), has been awarded a contract by BHP and Mitsubishi Alliance ("BMA"), to provide mining services at the Saraji mine, a metallurgical coal mine located in the Bowen Basin in central Queensland, Australia.
The contract from BMA is valued at AUD60 million for over an 18-month term, with an average annual production expected to be approximately 7 mbcm p.a. BUMA Australia will mine a new pit to be opened at Saraji Mine by BMA, which was first developed in 1974 and is one of Australia's largest coal mines by recoverable coal reserves. The contract also has an additional 18-month extension option.
Ronald Sutardja, President Director of PT Delta Dunia Makmur Tbk, stated, "We are thrilled to extend our partnership with BMA and excited to have been selected for this new contract to provide mining services at the Saraji mine. As a company, we prioritize our customers' interests, which we believe is the foundation of our enduring relationships with our reputable partners. Our team's dedication and expertise in the mining industry, particularly in promoting and adhering to good mining practices, have strengthened our bonds with current clients and opened doors to new opportunities. This contract serves as a testament to Delta Dunia's unwavering commitment to expanding our portfolio and advancing our metallurgical coal mining activities. We take pride in solidifying our position as an industry leader and eagerly look forward to contributing to our client's success and driving growth for our business."
In 2022, the Company successfully diversified its portfolio by expanding into metallurgical coal mining operations, which contributed 13% of its revenue, with the remaining 87% coming from thermal coal mining operations. Moving forward, the Company is committed to further diversifying its business by increasing mine site rehabilitation activities and developing infrastructure projects in Indonesia. Additionally, the Company aims to decrease its reliance on thermal coal to less than 50% of its group revenue by 2028. All of these efforts align with the Company's dedication to environmental stewardship, social responsibility, and strong governance. The Company remains committed to building a sustainable future guided by strong ESG principles.
This new contract reinforces BUMA Australia's strong foothold in the Bowen Basin, where it now provides pre-strip and coal mining services at three BMA mines in Queensland: Blackwater, Goonyella Riverside, and Saraji. In addition, BUMA Australia provides coal mining services at Bowen Coking Coal's Broadmeadow East and Burton Mines. Colin Gilligan, CEO of BUMA Australia, said, "We are proud of our long-standing relationship with BMA, Australia's largest producer and supplier of seaborne metallurgical coal, and delighted to have been awarded this new contract for the Saraji mine. This contract award underlines our customers' continued confidence in our professionalism and significant contribution to their business growth. It also reflects BUMA Australia's long and extensive track record of safe, efficient, and consistent delivery of mining services to BMA."
The contract extension is expected to further solidify the foundation that will support the Company's continued growth following last year’s record performance across its operations:
- In 2022, the Company achieved its best financial performance to date, recording revenue of USD1,554 billion and a net profit of USD29 million
- Overburden removal increased to 547 mbcm in 2022, a 68% year-on-year increase.
- Coal production also increased to 87 million tons in 2022, a 61% year-on-year increase.
- The Company is actively managing its debt position, reducing Net Debt to EBITDA from 3x in 2021 to 2x in 2022, with around 60% of its debt due in 2026 or later.
