BUMA’s Dawson coal mine deal collapses after Peabody terminates agreement
Wednesday, August 20 2025 - 01:55 PM WIB
By Rara Suratmi
IDX-listed PT BUMA Internasional Grup Tbk (formerly PT Delta Dunia Makmur Tbk, IDX: DOID) announced on Wednesday that its plan to acquire a controlling stake in one of Australia’s largest metallurgical coal mines has collapsed, following the termination of key agreements by Peabody Energy.
In an official disclosure to the Indonesia Stock Exchange (IDX), the company revealed that on August 19, Peabody Energy terminated its purchase agreement with Anglo American for Anglo's steelmaking coal assets, citing an unresolved Material Adverse Change. This decision also triggered the termination of a separate agreement between Peabody and PT Bukit Makmur Internasional (BMI), BUMA’s indirect subsidiary, regarding the planned acquisition of the Dawson Complex in Queensland’s Bowen Basin.
The Dawson transaction was originally unveiled on November 25, 2024, as a major strategic move by BUMA International to gain a 51% stake in the high-volume Dawson Complex from Peabody for a total consideration of US$455 million. The deal was part of BUMA’s broader strategy to diversify into metallurgical coal production and expand its global footprint. Under the terms, BUMA International would fund Peabody’s acquisition of the Dawson Complex from Anglo American, after which the stake would be transferred to BUMA, pending regulatory approvals and pre-emptive rights.
Read also: BUMA International to acquire key Australian metallurgical coal mine
Ronald Sutardja, President Director of the Delta Dunia Group, had previously hailed the deal as “a significant step” in the group’s transformation into a leading coal producer and services provider. The Dawson Complex, which boasts over 8 million tons per annum (Mtpa) production capacity and resources supporting more than 50 years of mine life, was seen as a keystone asset for BUMA’s international ambitions.
However, with Peabody unable to finalize its own acquisition from Anglo, the domino effect has effectively nullified BUMA International’s involvement in the transaction.
This marks a significant setback in BUMA’s global growth trajectory, following its recent successful acquisition of Atlantic Carbon Group Inc. in the U.S. metallurgical coal sector.
Neither Peabody nor Anglo American have publicly disclosed detailed reasons behind the unresolved Material Adverse Change.
Editing by Reiner Simanjuntak