JAKARTA. BUMA International, one of the subsidiaries of PT Delta Dunia Makmur Tbk (DOID), will take over 51% of Dawson Complex, a coal mining company based in Queensland, Australia.

The acquisition value of this metallurgical coal mine is proposed at USD 455 million, consisting of USD 355 million of advance payment and USD 100 million of cash allowed for 4-year instalment.

The completion of Dawson Complex acquisition by BUMA International will depend on the fulfilment of agreed terms by Peabody and BUMA International, which are projected to be met by 2025.

Ronal Sutardja, President Director of DOID, mentioned that this corporate action will reinforce DOID’s position in global metallurgical coal market. DOID had reportedly also acquired Atlantic Carbon Group Inc. (ACG) as a business diversification means.

“Dawson Complex will promote our ambition to drive long-term growth and reinforce our roles as the ultimate player int this industry,” Sutardja said.

The funding for this acquisition will leverage several sources, starting from internal cash reserves, bank syndicate loan, and guarantee for rehabilitation obligation.

For the record, Dawson Complex is a premium metallurgical coal mining that has been operating since 1961. It records production capacity of over 8 million ton per year as well as confirmed reserves that are projected to allow the company to operate for another 20 years or more. (KR/ZH)