Indonesia's Delta Dunia increases stake in Australia's 29Metals in a move towards copper

29Metals

03/12/2024 23:29

Dec 4 (Reuters) - Indonesian miner PT Delta Dunia Makmur  DOID.JK  has increased its
stake in Australia's copper-focused base and precious metals miner 29Metals  29M.AX  to 19.9% by
subscribing to the latter's newly issued shares worth A$62 million ($40.19 million).
    The Jakarta-listed company has been diversifying beyond its home base of Indonesia, where it
runs its BUMA coal mining services business.
    Last month, Delta acquired a 51% stake in Dawson Complex, Australia, a part of Anglo
American's  AAL.L  steelmaking coal portfolio, for $455 million.
    Delta's investment in 29Metals is part of the Australian company's A$180 million equity
raising, carried out at a discounted offer price of A$0.27 per share, to fully fund its Gossan
Valley development.
    "This transaction represents a significant step in the Group's strategic expansion into the
future-facing commodities sector, offering valuable exposure to copper and zinc," Ronald
Sutardja, president director of Delta Dunia, said in a statement on Tuesday.
    Pension fund AustralianSuper also subscribed for new shares in 29Metals, taking its stake up
to 18%. Specialist resources private equity manager EMR Capital holds a 44.79% stake in the
company.
    29Metals operates two mines, Golden Grove in Western Australia and Capricorn Copper in
Queensland, which is poised restart production since operations were suspended earlier this year
due to excessive rainfall leading to increased water level at the site.
    
    

($1 = 1.5425 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru; Editing by Alan Barona)
 ((Himanshi.Akhand@thomsonreuters.com))