Anglo-Peabody mine tussle leaves Indonesian mining firm seeking new coal assets
Indonesian mining company PT Buma Internasional Grup Tbk is still on the hunt for new coal assets, as uncertainty lingers about its planned purchase of an Australian project following the collapse of a deal between Peabody Energy Corp. and Anglo American Plc.
Buma had agreed to buy a 51% stake in Dawson — one of Australia’s largest metallurgical coal projects — from Peabody for $455 million in November. However, Peabody has since said it would abandon its $3.8 billion purchase of Anglo’s coal portfolio, including Dawson, meaning that the deal with Buma may never be finalized.
“Our integration planning for Dawson was well advanced,” Buma director Iwan Fuad Salim said by email. “We remain open and committed to adding high-quality, long-life assets to our portfolio — strengthening our asset base, and supporting our long-term growth.”
Buma has secured debt and bonding facilities to finance the transaction, Fuad Salim said, adding that the company would continue to monitor any developments. Anglo still operates Dawson and has a 51% stake, with the rest owned by Mitsui Resources Pty.
Anglo and Peabody didn’t immediately reply to emails seeking comment.
Anglo’s divestment of its coal portfolio was considered a major test of the London-listed commodities giant’s plan to restructure and simplify its business and appease shareholders after management knocked back a takeover bid from BHP Group last year.
(By Paul-Alain Hunt)
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