Downer EDI has reached an agreement to sell its Open Cut Mining East business to an Australian subsidiary of PT Bukit Makmur Mandiri Utama (BUMA), a large Mining services provider in Indonesia.
According to Downer’s statement, the $150 million transaction includes the transfer of the assets, liabilities (including employee entitlements), employees and contracts comprising the Open Cut Mining East business to BUMA.
CEO Grant Fenn, said the sale of the business marked the final step in the company’s divestment of its mining portfolio of businesses, which delivered total proceeds of $778 million.
“An important part of our Urban Services strategy was the exit from our capital-intensive mining businesses,” Mr Fenn said.
“The sale of Open Cut Mining East is the last step of this process and follows the divestments of Open Cut Mining West, Downer Blasting Services, Underground mining, Otraco, the Snowden consulting business and our share in the RTL Mining and Earthworks joint venture.”
The transaction is expected to complete before the end of the 2021 calendar year.