Delta Dunia unit signs MoU with Sungai Danau

By Thomas R. Sembiring

IDX-listed mining services company PT Delta Dunia Makmur Tbk said that its subsidiary PT Bukit Makmur Mandiri Utama (BUMA) has signed a MoU with coal mining firm PT Sungai Danau Jaya (SDJ) for overburden removal, coal production and heavy equipment rental.

Delta Dunia Director Errinto Pardede said Thursday that the MoU, worth an estimated US$300 million, which among others cover 131 million bcm of overburden removal and 43 million tons of coal production at SDJ?s concessions in Tanah Bumbu Regency, South Kalimantan, is expected to be finalized into a binding agreement in 30 days.

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 Reiner Simanjuntak