Nov 15, 2010

Delta Dunia, BUMA, & Arutmin contract

PT Delta Dunia Makmur Tbk (DOID), parent company of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), has sealed 3 year contract worth US$200 million from coal miner PT Arutmin Indonesia.
In the public statement submitted to Indonesia Stock Exchange (IDX) today, BUMA has entered into agreement of coal mining sevices with Arutmin on November 12 2010.
Under the agreement, BUMA will act as coal mining contractor at Senakin Pit4-7 coal site with main targets of 81 million bank cubic meter overburden remodal and 6.7 million tons coal production.
The newly agreement is an extension of the previous 3 year contract with Arutmin signed in 2008. 
Based on Citi conference’s material, Bukit Makmur currently 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 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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