Molten copper in a copper factory.
A unit of Delta Dunia Makmur, an Indonesian mining company backed by tycoon Patrik Walujo's private equity firm Northstar Group, is deepening its mining investments in Australia by acquiring a stake in listed copper miner 29Metals.
Bukit Makmur Mandiri Utama (BUMA), an indirect subsidiary of Delta Dunia, said on Tuesday it would acquire nearly 20% of 29Metals for A$62 million ($39.8 million). With this investment, Delta Dunia is diversifying its Australian portfolio into copper and zinc mining, allowing the group to meet booming global demand for electric vehicles.
Ronald Sutardja, President of Delta Dunia Group, said in a statement: “This strategic transaction strengthens our commitment to diversification and growth in commodities for the future and builds on our “This transaction represents a tangible step forward in Delta Dunia Group’s long-term strategic ambition to support the transition to a low-carbon economy, while diversifying our portfolio for a more sustainable future. . “
Delta Dunia has signed more than $617 million worth of deals in Australia and the United States this year through its deal with 29Metals, as the Jakarta-listed company seeks to diversify beyond its home market in Indonesia. Last month, the company agreed to acquire a 51% stake in the Dawson Complex, one of Australia's largest metallurgical coal mines, for $455 million. In July, Delta Dunia announced the acquisition of Pennsylvania mining company Atlantic Carbon Group for US$122.4 million.
Delta Dunia plans to use its cash reserves and bank loans to fund the 29Metals acquisition, which is set to close this month. The investment is part of a A$180 million share sale by 29Metals, which is raising new capital to fund the development of its Gossan Valley mine in Golden Grove, Western Australia.
In addition to its overseas expansion, Delta Dunia has also secured major deals in Indonesia. In October, Indonesia's Pratama, a unit of billionaire Low Tuck Kwong's Bayan Resources, awarded BUMA a coal mining services contract worth 107.8 trillion rupees ($6.8 billion).
Delta Dunia is a company with operations in Indonesia, Australia and the United States, and is majority-owned by Walujo's Northstar Group. Walujo is the son-in-law of billionaire Theodore Rachmat and has an estimated net worth of $3.6 billion, according to data Forbes Instant data.
Northstar is a Singapore-based investment firm founded by Walujo in 2003 and currently manages over US$2.6 billion of committed equity. One of Northstar's most high-profile investments was in GoTo, an Indonesian ride-hailing and e-commerce unicorn. Walujo serves as CEO of GoTo.
