Tag Archives: BUMA Australia

BUMA Australia banks Whitehaven Coal Blackwater mine contract

Mine operation news, Mining services, Steel and iron ore, , , , ,

BUMA Australia Pty Ltd has entered into 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 in the Bowen Basin, in central Queensland, Australia.

The announcement, made by PT Delta Dunia Makmur Tbk subsidiary, PT Bukit Makmur Mandiri Utama (BUMA) – which counts BUMA Australia as a wholly owned Australian subsidiary, comes hot on the heels of Whitehaven taking over the asset from BHP Billiton and Mitsubishi Alliance (BMA).

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 metres of overburden removal. The contract with Whitehaven Coal is a continuation of the services that BUMA Australia had provided at Blackwater mine with BMA.

Dian Andyasuri, Director at Delta Dunia Group, said: “We are pleased that Whitehaven Coal has recognised 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 stellar reputation and expertise are recognized and trusted by industry-leading mine owners. BUMA and Delta Dunia Group are committed to fostering strong, enduring relationships and prioritizing the success of our clients.”

Since May 2012, BUMA Australia has been a key player at the Blackwater mine, partnering successfully with BMA, the company says. 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.

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.”

BUMA Australia extends relationship with BHP Mitsubishi Alliance’s Goonyella mine

Coal technology, Mine operation news, Mining services, Steel and iron ore, , , , , , ,

BUMA Australia has won its third contract in 2022, with the mining service provider extending its relationship with BHP Mitsubishi Alliance’s (BMA) Goonyella Riverside mine in Queensland’s Bowen Basin for up to another five years.

This award covers delivering mining services at the operation and extends the company’s existing delivery scope at the mine.

BUMA Australia is a subsidiary of Bukit Makmur Mandiri Utama (BUMA), which, itself, is a subsidiary of PT Delta Dunia Makmur Tbk. The company’s Australia presence was expanded in 2021 with the acquisition of Downer EDI Limited’s Open Cut Mining East business.

The contract extension from BMA is valued at A$400 million ($268 million) over a three-year term, with the option to extend for another two years. Production is expected to average 36 million bank cubic metres per year.

On February 22, 2022, BUMA Australia announced it had secured a new A$550 million contract extension at BMA’s Blackwater mine and, on May 10, it announced a new A$320 million, three-year contract with Bowen Coking Coal’s Broadmeadow East coking coal project, with the option to extend for a further year.

Bowen Coking Coal brings BUMA Australia on-board for Broadmeadow East project

Coal technology, Mineral project development, Mining services, Steel and iron ore, , , , , , , ,

Bowen Coking Coal Ltd has appointed BUMA Australia Pty Ltd to provide mining services to its 100% owned Broadmeadow East Mine (BME) in Queensland, Australia.

First phase mobilisation of site infrastructure, ancillary equipment, haul tucks and a Hitachi EX3600 excavator are underway and site work is expected to commence within the next two weeks, BCC said.

Bowen has appointed BUMA on a three-year contract, with the option to extend for a further year (at Bowen’s election) to operate the BME mine, using its own equipment, staff, systems and procedures in accordance with production requirements set by Bowen.

The contract also makes provision for the seamless transition into the Burton mine at already agreed rates and production volumes, which the company intends to trigger immediately on completion of the Burton transaction.

The Broadmeadow East Project was acquired from Peabody Energy in June 2020 for A$1 million ($724,086) plus a royalty of A$1 per tonne for the first 1.5 Mt sold. The project hosts a 33 Mt resource and was initially planned to be mined though conventional truck and shovel open-cut mining at a rate of 800,000 t/y to 1 Mt/y over a period of between five to seven years.

A fast-tracked program for this contract targets the same tonnages to be mined at an average rate of circa 1.2 Mt/y over a shorter period.

Bowen Coking Coal Managing Director and CEO, Gerhard Redelinghuys, said: “We welcome the experienced team from BUMA on-board and we look forward to a long and mutually prosperous partnership. BME is a critical building block in Bowen’s plans to become Australia’s next significant independent coking coal producer.

“The rapid start-up of production from BME will be a testament to the team’s ability to transform a green fields project into a producing mine in a short time frame. Bringing BME into production diversifies the Bowen production base and will be the first of a number of our metallurgical coal projects to be exported from the world-class Dalrymple Bay Coal Terminal. It’s a great time to be bringing on our second producing asset in this extraordinary high priced environment.

“This agreement with BUMA puts Bowen in a very strong position to expand production further via a quick start-up of the larger, adjoining Burton mine post-transaction completion.”

Coal mined from BME will initially be hauled to Fitzroy Australia’s Carborough Downs coal handling and preparation plant where it will be washed and exported to global steel producers through the Dalrymple Bay Coal Terminal under an infrastructure access agreement.

BUMA Australia was established in 2021 to acquire the Open Cut Mining business of Downer. This acquisition included the transition of all people, mining services contracts, assets, systems and intellectual property from a business which has successfully provided mining and civil services in diverse locations and across many commodities for over 75 year including recent contracts with the BHP Mitsubishi Alliance and Stanwell.

Downer completes mining portfolio divestments with latest sale to BUMA Australia

Mining mergers and acquisitions, Mining services, , , ,

Downer EDI Limited has completed the final transaction as part of its Mining portfolio divestment plan with the sale of its Open Cut Mining East business to BUMA Australia Pty Ltd.

As announced in October, Downer will receive approximately A$150 million ($108 million) in cash proceeds from the transaction, subject to completion adjustments.

Together with the previously announced Mining and Laundries transactions, total proceeds from Downer’s divestment program amount to A$778 million, the company said. Included within this amount is the $79 million transaction with Bridgestone Mining Solutions Australia Pty Ltd for Otraco International Pty Ltd, the A$175 million sale of the Mining West business to MACA and the divestment of Downer Blasting Services to Enaex SA.