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

Indonesian miner PT Delta Dunia Makmur has increased its stake in Australia's copper-focused base and precious metals miner 29Metals 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 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.

Source : Reuters.com