Bukit Makmur starts operation in Sungai Danau Jaya mine

IDX-listed coal trader PT Delta Dunia Makmur Tbk. (DDM) announced on Wednesday that its primary operating subsidiary, PT Bukit Makmur Mandiri Utama (BMMU), has commenced its operations at PT Sungai Danau Jaya (SDJ)?s mining area as of December 2015.

SDJ, a subsidiary of Geo Energy Resources Limited, is one of BMMU?s 2015 new clients.

With the production start, BMMU?s production will ramp up to 500,000 tons of coal along with the corresponding overburden removal by the end of March 2016 and is expected to exceed 6 million tons of coal in 2016.

The firm signed a life of mine contract with SDJ in the second quarter of this year, with scope of works consisting of approximately 131 million bcm overburden removal, 43 million ton coal hauling, and heavy equipment rental.

SDJ is a unit of Singapore-based investment firm Geo Energy Resources Ltd. The latter acquired last year 66 percent of Borneo International Resources Pte Ltd, which through its subsidiary SDJ owns two coal concessions in Tanah Bumbu Regency, South Kalimantan, with a combined area of 236.1 hectares, and contain coal with an average calorific value of 4,038 kcal/kg (GAR).

Editing by Johannes Simbolon