Wednesday, May 29, 2024

BUMA Australia secures contract for pre-strip mining services at Blackwater Mine

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Gusty da Costa




PT Bukit Makmur Mandiri Utama (“BUMA”), through its wholly owned Australian subsidiary BUMA Australia Pty Ltd (“BUMA Australia”), has set up a contract with Blackwater Operations Pty Ltd, a subsidiary of Whitehaven Coal Mining Limited, to provide pre-strip mining services at Blackwater mine, a metallurgical coal mine located in the Bowen Basin, Central Queensland, Australia.

The contract is expected to contribute significantly to BUMA Australia’s revenue until June 2026 and an average annual production of approximately 36 million Bank Cubic Meter (bcm) of overburden removal. The contract with Whitehaven Coal is a continuation of the services that BUMA Australia had provided at Blackwater mine with BHP Billiton and Mitsubishi Alliance (BMA). Whitehaven Coal acquired Blackwater and Daunia mines from BMA through an Asset Sales Agreement signed on April 2, 2024. 

“We are pleased that Whitehaven Coal has recognized BUMA Australia’s extensive expertise at the Blackwater mine − a true acknowledgment of our legacy of excellence in the region. This new contract shows that BUMA Australia’s reputation and expertise are recognized and trusted by industry-leading mine owners.” Dian Andyasuri, Director at Delta Dunia Group − the parent company of BUMA − said.

Since May 2012, BUMA Australia has been a key player at the Blackwater mine, partnering with BMA. This experience has refined BUMA Australia’s capabilities in truck and excavator pre-strip operations, enhancing its understanding of the site’s dynamics and operational challenges. Now, with the mine’s ownership under Whitehaven Coal, BUMA Australia is ready to continue its legacy of excellence and ensure sustained success at Blackwater mine.

Colin Gilligan, CEO of BUMA Australia, said, “This new contract cements BUMA Australia’s reputation in the Bowen Basin, where we provide pre-strip and coal mining services to the metallurgical coal industry at the Blackwater, Goonyella Riverside, and Saraji mines, as well as at the Broadmeadow East and Burton mines.”

“Following Whitehaven’s acquisition of the Blackwater mine from BMA, we are eager to contribute to their operational success. Our track record of safe, efficient, and consistent performance at Blackwater strengthens our confidence in our ability to deliver for Whitehaven Coal,” he added.

The contract with Whitehaven Coal at the Blackwater mine marks a significant milestone for Delta Dunia Group, sustaining its growth trajectory as demonstrated by record-breaking performance in overburden removal, revenue, and earnings before interest, taxes, depreciation, and amortization (EBITDA) in FY 2023. This achievement is reinforced by a 28 percent year-over-year increase in production volume in Australia, supported by significant contract wins with BMA’s Saraji mine and Bowen Coking Coal’s Burton mine. 

Additionally, BUMA Australia’s contract for mining services at Commodore mine with Millmerran Power Management Pty Ltd will conclude on August 31, 2024. The exit from the thermal coal mine, located adjacent to the Millmerran Power Station in Southeast Queensland, aligns with the Group’s strategy to reduce its thermal coal operations. This move underscores the Group’s commitment to enhancing its portfolio with a greater focus on metallurgical coal and other minerals.

Both the above corporate actions align with the Group’s strategy to diversify and reduce its reliance on thermal coal to below 50 percent of total revenue by 2028. The Group’s strategic transformation is already yielding results, with metallurgical coal and infrastructure contributions accounting for 19 percent of the Group’s FY 2023 revenue.

Gusty da Costa






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