PERTH (miningweekly.com) – Integrated services provider Downer EDI on Monday announced plans to sell its Open Cut Mining East business to an Australia subsidiary of mining services provider PT Bukit Makmur Mandiri Utama (BUMA).
Downer will receive some A$150-million in cash from the transaction, subject to adjustments, and BUMA has paid a A$16-million deposit, with the remainder of the purchase price payable at completion of the transaction.
Downer CEO Grant Fenn said on Monday that the sale of the Open Cut Mining East business was the final step in Downer divesting its mining portfolio of business, along with the Mining and Laundries transaction, which netted the company some A$778-million.
“An important part of our Urban Services strategy was the exit from our capital-intensive Mining businesses. 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.”
Completion of the transaction was subject to a number of conditions, including novation of certain contacts, and would likely be finalised before the end of the year.