Tag Archives: BUMA

Downer EDI to offload Open Cut Mining East business to BUMA

Downer EDI Limited has entered into an agreement to sell its Open Cut Mining East business to an Australia-based subsidiary of PT Bukit Makmur Mandiri Utama (BUMA), a large mining services provider in Indonesia.

The transaction includes the transfer of the assets, liabilities (including employee entitlements), employees and contracts comprising the Open Cut Mining East business to BUMA.

Downer says it will receive approximately A$150 million ($110 million) in cash proceeds from the transaction, subject to completion adjustments. BUMA has paid Downer a deposit of A$16 million with the remainder of the purchase price payable at completion.

Downer CEO, Grant Fenn, said the sale of Open Cut Mining East is the final step in Downer’s divestment of its mining portfolio of businesses. Together with the previously announced mining and laundries transactions, total proceeds from Downer’s divestment program amount to A$778 million.

“An important part of our Urban Services strategy was the exit from our capital-intensive mining businesses,” Fenn said. “The sale of Open Cut Mining East is the last step of this process and follows the divestments of Open Cut Mining West, Downer Blasting Services, Underground mining, Otraco, the Snowden consulting business and our share in the RTL Mining and Earthworks joint venture.”

Completion of the transaction, which is subject to customary conditions (including novation of certain contracts), is expected to occur before the end of the 2021.

BUMA to tap into tech startup environment with Plug and Play platform

PT Bukit Makmur Mandiri Utama (BUMA), one of Indonesia’s top mining contractors, has partnered with Plug and Play’s global open innovation platform to engage with startups focusing on predictive maintenance, safety and health technology.

Ronald Sutardja, BUMA CEO, said the company was looking to engage with such companies to build “breaking ground technologies” in mining services.

“Technology has always been part of our DNA and we’re striving to be the most technologically advanced company in the business,” he said.

BUMA, currently the second largest independent coal mining contractor in Indonesia according to parent company PT Delta Dunia Makmur Tbk. It carries out a comprehensive scope of work from overburden removal, coal mining, coal hauling as well as reclamation and land rehabilitation.

Plug and Play said: “Having technology in place is not merely about improving worker productivity or acquiring more accurate data, but it is also about improving safety conditions for BUMA’s employees and improving employee’s health.”

Eko Prihadi, Director at BUMA, recently said at Plug and Play’s APAC Summit in Singapore in May 2019: “Safety is one of our biggest priorities in BUMA. As we currently employ more than 13,000 people, we are continuously on the lookout for the latest technologies to improve the well-being and working conditions of our employees.

“As a highly progressive company, innovation is the key to our operations. This partnership will give us access to the global startup ecosystem and allow us to work with the latest cutting-edge technologies to develop innovative business strategies in key focus areas.”

Plug and Play’s Supply Chain platform is, according to the company, the world’s leading innovation consortium with strategic locations in Silicon Valley, Hamburg, Shanghai, and Singapore. Focusing on key areas of relevance, Plug and Play will identify and connect its partners with the latest technologies that will accelerate their innovation efforts.

Wesley Harjono, Managing Partner of GK-Plug and Play Indonesia, said: “We are very excited to have BUMA join us as our newest supply chain partner. Since the inception of the platform out of Silicon Valley in 2016, the vertical has amassed more than 35 industry-leading corporate partners including DHL, ExxonMobil, and ArcelorMittal. Partnering with BUMA will help us drive technological advancements in key areas such as safety, wearables, and IoT in the mining industry.”