Coal and the hands of a miner.
A unit of Delta Dunia Makmur—an Indonesian miner backed by tycoon Patrik Walujo private equity firm Northstar Group—has agreed to buy 51% of Dawson Complex, one of the largest metallurgical coal mines in Australia, for $455 million, doubling down on its investment Down Under.
Under the proposed deal, Delta Dunia’s Bukit Makmur Internasional will acquire the Dawson Complex mine stake from a unit of Peabody Energy Corp, Delta Dunia said in a statement on Monday.
The transaction, which is expected to be completed in 2025, comes on the heels of Delta Dunia’s acquisition of Atlantic Carbon Group in July for $122.4 million as the Jakarta-listed company seeks to diversify beyond its home market in Indonesia.
“The acquisition of Dawson reinforces our position in the global metallurgical coal market and builds on our recent acquisition of Atlantic Carbon Group,” Ronald Sutardja, president director of Delta Dunia said in the statement. “This move further delivers on our multi-year strategic plan to diversify into a major coal services provider and producer, leveraging the Group’s industry-leading capabilities.”
The acquisition will be financed through a combination of internal cash reserves and bank loans, the company said. Delta Dunia will pay $355 million in upfront cash and an additional $100 million payable within four years upon completion of the transaction.
Dawson mines primarily produce metallurgical coal for the steelmaking industry, with key export markets in Asia including India and Japan. These mines have an annual production capacity exceeding eight million tonnes and a projected operational lifespan of over 20 years.
Delta Dunia has been securing significant deals. Last month, Indonesia Pratama—a unit of billionaire Low Tuck Kwong’s Bayan Resources—awarded a 107.8 trillion rupiah ($6.8 billion) coal mining services contract to its unit, Bukit Makmur Mandiri Utama.
Delta Dunia, a company with operations spanning Indonesia, Australia, and the U.S. is majority-owned by Walujo’s Northstar Group. Walujo is the son-in-law of billionaire Theodore Rachmat who has an estimated net worth of $4 billion according to Forbes’ real-time data.
Northstar, a Singapore-based investment firm founded by Walujo in 2003, currently manages over $2.6 billion in committed equity capital. One of Northstar’s most notable investments is in GoTo, Indonesia’s ride-hailing and e-commerce unicorn. Walujo serves as CEO GoTo.
