Aug 24, 2010

DOID in talks to extend contracts

Publicly listed PT Delta Dunia Makmur (DOID), parent company of Indonesia’s second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), is now in talks in a bid to extend existing contracts maturing within months.
Delta Dunia is also negotiating with some other parties regarding to the new coal-mining contracts. “We are now in talks for some contracts that will be extended, possibly before the end of this year. I can not mention the contract detail yet,” said Delta Dunia’s Corporate Secretary Andre Soelistyo today.
Based on Citi conference’s material, BUMA owns and manages 12 coal-mining contracts. Of 12 contracts, two contracts with PT Bukit Baiduri Energy and PT Arutmin Indonesia will soon be maturing.
The contract period with Baiduri Energy started from 2001 until 2010, while Delta Dunia’s contract with Arutmin began in 2008 and shall be ended by 2011.
Apart from that, two contracts with Bayan’s Group, Perkasa Inakakerta and Marunda Graha Mineral shall be matured by 2012.
BUMA’s biggest earning contributor last year was Berau Coal with 33% contribution, followed by Adaro with 17% and Kideco Jaya Agung with 14%.
Last year, Berau Coal’s coal production reached 14.3 million tons, Artumin Indonesia posted 19.3 million tons of coal, Adaro produced higher production with 40.6 million tons.
Kideo Jaya Agung and Bayan Group booked 24.7 million tons and 12 million tons production respectively. 

List of Bukit Makmur’s contracts:

1. Berau Coal-Lati: 1998-2018
2. Berau Coal-Binungan: 2003-2018
3. Berau Coal-Suaran Port: 2003-2018
4. Kideco: 2004-2019
5. Adaro: 2009-2013
6. Bayan-Gunung Bayan: 2007-2013
7. Bayan-Perkasa Inakakerta: 2007-2012
8. Maruda Graha Mineral: 2003-2012
9. Lanna Harita Indonesia: 2001-2013
10. Arutmin: 2008-2011
11. Bukit Baiduri Energy:2001-2010
12. Darma Henwa: 2010-2013.
Source: Citi conference.

Disclosure: No position at the stock mentioned above.

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