The transaction is expected to complete in June 2024. Further details of the transaction will be announced upon completion of the transaction.
The US$122.4 million deal secures ownership of four producing UHG anthracite mines in Pennsylvania. After the acquisition, the Group will become a key UHG anthracite producer globally. The transaction further diversifies the Group’s business geographically and into future-facing commodities, in line with its transformation strategy.
The transaction is financially attractive due to its favourable valuation, leverage, and earnings impact. It also broadens the Group’s relationships with key customers and stakeholders. With the transaction, the Group assumes control of ACG’s operations. UHG anthracite is essential for the commercial production of low-carbon steel (LC Steel) and can reduce carbon emissions from the production process by up to 74%. The Group’s anthracite reserves are sufficient to support mining activities for more than 25 years, and in turn, production capacity of up to 25 million t of LC Steel annually.
Ronald Sutardja, President Director of Delta Dunia Group, comments:
“This transaction is a significant milestone for the Group. Upon completion, we will achieve a number of our strategic objectives. The Group will become a mine owner for a commodity critical for the production of LC Steel. We will expand our geographic footprint into another key mining region. And, the deal further diversifies our revenue towards our ESG target of lowering our thermal coal revenue to below 50% of our total revenue by 2028.”
