October 19, 2021
An Indonesian company, PT Bukit Makmur Mandiri Utama (BUMA), will be taking over the operation of Meandu coal mine, possibly before the end of this year.
Downer EDI Limited announced on October 11 that it had entered into an agreement to sell its Open Cut Mining East business to an Australian subsidiary of BUMA.
Open Cut Mining East has contracts with BHP Mitsubishi Alliance at Moranbah and Blackwater, the InterGen Commodore mine at Millmerran, as well as Stanwell Corporation.
In a statement to the ASX, Downer CEO Grant Fenn said the transaction included the transfer of assets, liabilities (including employee entitlements), employees and contracts to BUMA.
Downer will receive about $150 million in cash, subject to adjustments at completion.
The ASX statement said BUMA has paid a $16 million down payment on the deal.
Mr Fenn said the sale of Open Cut Mining East was the final step in Downer’s divestment of its mining portfolio.
The sale is expected to be completed before the end of the year.
Downer successfully negotiated a new five-year contract with Stanwell in January last year.
The $600 million deal, which started last July, included full mining services and operation of the mine’s coal handling and preparation plant.
Downer has been the Meandu contractor since 2013.
Project manager Darryl Hunter told the KCCI meet’n’greet in Kingaroy on Tuesday night there would be no job losses at Meandu connected with the sale to BUMA.
Are there any vacancies for coal preparation plant operators?