PT Delta Dunia Makmur Tbk. ("Delta Dunia Group", IDX: DOID) announced that its subsidiary, PT Bukit Makmur Mandiri Utama (BUMA), has signed a Mining Services Agreement with PT Persada Kapuas Prima (PKP) on August 12, 2024.

PKP is a subsidiary of PT Singaraja Putra Tbk (SINI), which holds a coal mining concession in Kapuas Regency, Central Kalimantan Province. Under this agreement, BUMA will perform mining services, including overburden removal and coal mining operations.

The mining services agreement will be effective throughout the life of the mine, with the initial phase planned for a nine-year period commencing in the fourth quarter of 2024.

The initial phase of the mining services is expected to result in over 359,330,000 bcm of overburden removal and 60,600,000 tons of coal production, with a contract value exceeding IDR 12 trillion or more than USD 755 million.

Indra Kanoena, President Director of BUMA, stated, "We are pleased to announce this new contract with PKP, which further strengthens the industry's recognition of BUMA's reputation and expertise in the Indonesian mining sector. The trust placed in us by prominent mine owners not only reflects BUMA and the Group's commitment to fostering strong and sustainable relationships but also underscores our dedication to prioritizing our clients' success."

This new agreement serves as a testament to the confidence in BUMA's expertise in providing comprehensive mining services with a holistic approach, including overburden removal, mine planning, mining operations, transportation, and mine rehabilitation.

With over 25 years of experience, BUMA has successfully managed complex and challenging mining operations, including those on small islands, resolving high-level technical issues such as seawater seepage management, handling of mud, anticipating and managing geotechnical challenges and tidal waves, and even river stream relocation to minimize environmental impact and achieve optimal operational efficiency.

These operational excellences are further supported by the company's commitment to implementing innovative technologies in the mining sector and driving continuous improvement projects.

"At BUMA, we continuously strengthen the foundation for sustainable growth by exploring strategic opportunities and enhancing mutually beneficial relationships to grow together with our partners. Through a proactive business development strategy, we focus not only on acquiring and renewing contracts but also on creating stable and sustainable revenue streams. This is part of our efforts to continuously improve our service quality while managing operational risks," Indra concluded.