PT Delta Dunia Makmur Tbk (Delta Dunia Group) has completed the acquisition of mining company Atlantic Carbon Group (ACG) for USD 122.4 million. Through this acquisition, the company ensures ownership of four very high grade anthracite (a type of low-emission coal) mines in Pennsylvania, United States.

Delta Dunia Group President Director Ronald Sutardja explained that the acquisition of the US mining company was carried out through the American Anthracite SPV I, LLC entity as a subsidiary under PT Bukit Makmur International (BUMA International). With the acquisition, the company's revenue is projected to increase by USD 120-130 million per year from 2024 to 2028.

“With the long operational life of four active ACG mines that can support more than 25 years of mining and production of up to 25 million tons of low-carbon steel per year,” he said in the company's official statement, Tuesday (9/7/2024).

In addition, this move is also considered to significantly diversify the Group's revenue, increasing the portion of revenue from non-thermal coal from 19% in FY2023 to 28% in FY2024. This is in line with the Group's strategic objective to reduce dependency on thermal coal.

Previously, BUMA has also expanded its global network by acquiring BUMA Australia in 2021. Since then, BUMA has not only successfully built a network in one of the world's leading mining centers, but also expanded their services to metallurgical coal.

According to Ronald, this strategic expansion has resulted in BUMA Australia's order book quadrupling by 2022, significantly improving the Group's operational performance.

“This acquisition enables ACG and BUMA's operations in Indonesia and Australia, along with our other associated businesses, to leverage on each other's extensive experience, best practices and innovative approaches in safety, mining operations and management.”

On the other hand, ACG CEO Eric Martin, welcomed the completion of the acquisition of the mining company he leads. According to him, this acquisition will have a very good impact on the company as a whole, especially in terms of growth and innovation.

“ACG continues to show consistent growth, supported by strong market demand and favorable UHG (Ultra High Grade) anthracite prices. Being part of Delta Dunia Group opens up new opportunities for growth and innovation,” Eric said.

“With BUMA's renowned expertise in seamlessly integrating acquisitions and their operational excellence, we are poised to significantly increase our production capacity. We look forward to leveraging their extensive industry experience to unlock new potential and drive major advancements in our operational strategy,” he concluded.