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Tuesday, 29 June 10
BUMA TO MOVE AROUND 333 MLN BCM OF OVERBURDEN IN 2010


COALspot.com: PT Delta Dunia Makmur Tbk, holding company of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), aims to reach 10%-20% growth in coal production and overburden removal this year.

According to presentation of Delta Dunia Makmur Macquarie conference in Hong Kong, the company is targeting to  produce 36.08 - 39.36 million tons of coal with overburden removal of 305.8 -333.60 million bcm in 2010.

Delta Dunia has produced 32.8 million tons of coal in 2009  removed  278 million bcm of overburden.

To achieve reach the new target, Delta Dunia, 40% controlled by private equity partner North star Pacific and founded by former Goldman Sach's banker Patrick Walujo, will spend US$150 - 180 million of capital expenditure in heavy equipment.

"We estimate to secure one new major contract in the first half this year and maintain 40% of EBITDA ratio on net revenue," Delta Dunia's management said in its presentation.

BUMA provides open-cut mining services to the large coal producers in Indonesia. Its main customers are PT Adaro Indonesia, PT Arutmin Indonesia, PT Bayan Resources, PT Berau Coal, PT Kideco Jaya Agung, and Lanna Resources.

Delta Dunia had acquired BUMA on November 6 2009.

Signaling bond refinancing
BUMA has signaled that issuance of new tax regulation on withholding tax, increased annual coupon rate for its US$ denominated bond from 10% to 20% or US$ 3.7 million annually.

BUMA, via a wholly owned subsidiary namely Prime Dig, has issued US$ 315 million value of bond in November 2009.

"Our bond documentation includes a tax call provision, allowing the bond to be called at par," official said during presentation.
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