Black Diamond sets up new unit to expand into mining services, infrastructure

Coal miner PT Black Diamond Resources Tbk (IDX: COAL) has established a new subsidiary to expand into mining support services and civil infrastructure, the company said in a disclosure on Monday.

The IDX-listed firm said it had set up PT Black Diamond Global (BDG), following the signing of its deed of establishment on March 10, which has been approved by the Law Ministry.

Black Diamond Resources holds a 99.95% stake in the new entity, with capital participation of Rp 1.99 billion out of BDG’s total paid-up capital of Rp 2 billion. The company’s authorized capital is set at Rp 5 billion.

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President Director Donny Janson Manua said the move was part of the group’s strategy to broaden its operational scope into several strategic areas, including mining support services and civil construction.

These include infrastructure projects such as roads, bridges, flyovers and underpasses, he said.

The company added that the establishment of the subsidiary would not have a material impact on its operations, financial condition or business continuity.

It also said the transaction did not constitute an affiliated or material transaction under prevailing regulations set by Indonesia’s Financial Services Authority.

Editing by Reiner Simanjuntak