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Indonesia’s Delta Dunia to acquire Australian coal mines for $455m
The acquisition of Dawson Complex, which produces metallurgical coal, aligns with Delta Dunia's strategy to reduce its reliance on the thermal coal business.
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Heavy machinery is used on May 24, 2024, at a coal mining site in Sumber Batu village, Meureubo district, West Aceh regency, Aceh. (Antara/Syifa Yulinnas)
P
T Delta Dunia Makmur has entered into a binding agreement with United States-based Peabody Energy Corporation to acquire a 51 percent stake in Dawson Complex, a major Australian coal mine, for US$455 million.
The deal includes US$355 million in upfront cash, with the remainder payable over four years.
As the publicly listed Indonesian mining company announced on Monday, the transaction is to be executed through subsidiaries of the two companies, PT Bukit Makmur Internasional and Peabody SMC Pty. Ltd.
Dawson Complex, one of the largest metallurgical coal mines in Australia, produces more than 8 million tonnes of coal per year. The mine boasts confirmed reserves supporting more than 20 years of operations and additional resources that extend the mine's potential lifespan to over 50 years. Its coal products are primarily exported to Asian countries, such as Japan and India.
Unlike thermal coal that is mainly used for electricity generation through coal-fired power plants, metallurgical coal is chiefly used in the steelmaking process.
Through Peabody, Delta Dunia is acquiring the mines’ stake from Australian mining firm Anglo American. The remaining share of the mine is held by Japanese company Mitsui Resources.
On Monday, Anglo American also announced it would sell its entire coal portfolio, including Dawson, to Peabody for $3.78 billion.
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