Extensive talks between the two companies’ top management suggests that ADRO would allocate more contract mining work to Buma (DOID’s subsidiary, which is now 2nd largest contractor for ADRO) in the future. This is especially for BHPBs Maruwai coal project if ADRO wins its bid. Buma will replace Pama as the largest mining contractor for ADRO. Analysis: It could be true as 1) some ADRO’s owner (ex-Astra) have close relationship with DOID’s newly appointed CEO. 2) DOID plans to spend US$150 mn in heavy equipment purchase for 2010 to increase their coal production and overburden removal.
