Tag Archives: PT Bukit Makmur Mandiri Utama

BUMA secures $7.8 billion contract extension from Bayan Resources subsidiary

Coal technology, Mining services, , , , , , ,

PT Bukit Makmur Mandiri Utama (BUMA), the principal subsidiary of PT Delta Dunia Makmur Tbk (Delta Dunia Group), has secured a long-term contract extension with PT Indonesia Pratama (IPR), a subsidiary of PT Bayan Resources Tbk (Bayan Group).

The contract extension period spans 11 years, from 2024 to 2035, and will significantly contribute to BUMA’s revenue, amounting to approximately $7.8 billion.

The agreement includes a substantial increase in overburden removal, reaching 1.827 billion bank cubice metres, and an increase in coal production to 465 Mt over the contract period.

Ronald Sutardja, President Director of Delta Dunia Group, said: “We are proud of our long-standing relationship with Bayan Group, one of the leading coal producers in Indonesia. This contract extension reflects BUMA’s track record in delivering safe, efficient and reliable mining services to Bayan Group. It also reaffirms Delta Dunia Group and BUMA’s commitment to continue strengthening our presence and growing our core business in Indonesia while deepening our long-term relationships with all of our partners.”

Indra Kanoena, President Director of BUMA, stated, “This amendment agreement reflects Bayan Group’s trust and long-term commitment to strengthening our strategic and sustainable relationship, which has grown strong for over 17 years. It also underscores BUMA’s dedication to always prioritising mutual success with our clients. With this amendment agreement, we are committed to continuously enhancing our operational excellence and supporting sustainable growth for BUMA and Bayan Group.

“At BUMA, we are committed to consistently creating optimal value for all stakeholders while generating a positive impact on the communities and environment. We hope to sustain this positive momentum, seizing growth opportunities for both our company and our stakeholders.”

Hexagon and BUMA successfully deploy fleet management solution in Indonesia

Automation, Coal technology, IoT, Mining equipment, Mining services, Mining software, , , , , , ,

Hexagon’s Mining division says it has been awarded an eight-year fleet management project by PT Bukit Makmur Mandiri Utama (BUMA) in Indonesia.

As part of this project, Hexagon successfully deployed 150 units of HxGN MineOperate OP Pro to BUMA’s IPR site operation in Indonesia with the system optimally running within three months, the company said.

The phased deployment covers Hexagon’s fleet management, asset health and enterprise analytics solutions implemented by the Hexagon team on site from June to September 2022.

BUMA was established in 1998 as a family business and is currently the second largest independent coal mining contractor in Indonesia.

Delta Dunia Makmur acquired BUMA in 2009 and has since been overhauling it into a more streamlined corporation. It holds approximately 20% of the market share and provides coal mining services to many of Indonesia’s largest and longest-running names in the coal industry, according to Hexagon’s Mining division.

Simon Stone, Vice President of APAC, Hexagon’s Mining division, said: “We are looking forward to strengthening our relationship with BUMA and accelerating their digital transformation journey. Like BUMA, Hexagon firmly believes in safety and efficiency, which makes this partnership and collaboration highly valuable to both parties.”

HxGN MineOperate OP Pro, the company says, offers open-pit mines high-precision guidance for dozers, drills and loading equipment. The solution improves bench elevations, reduces dilution and decreases rework to improve site safety, efficiency and profitability. Hexagon’s enterprise integration enables BUMA a single source for reporting and support across their fleet.

PT Bukit Makmur Mandiri Utama President Director, Pak Sorimuda Pulungan, said: “In following management’s Technology Transformation Project outline, Hexagon’s suite of integrated products and industry proven technology solutions played a major role in the decision-making process. Hexagon has set the new standard of being a reliable technology partner supported by an expert local team.”

Downer EDI to offload Open Cut Mining East business to BUMA

Mining equipment, Mining mergers and acquisitions, Mining services, , , ,

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

Coal technology, Equipment maintenance, IoT, Mining equipment, Mining maintenance, Mining safety, Mining services, , , , , , , ,

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.”