This trend of privately held companies acquiring major Australian coal mining assets raises two critical issues: 1) reduced transparency and 2) concerns regarding operational standards. Many of these private companies operate outside the "ESG constraints" that publicly listed owners typically face.[1]
On 18 May 2026, Anglo American announced the sale of its Australian steelmaking coal portfolio to Dhilmar Limited for up to USD3.875 billion.[2] The portfolio includes joint venture interests in six coal mines.[3] This followed a collapsed deal with Peabody Energy (BTU), which withdrew its USD3.78bn bid in August 2025, invoking a material adverse change (MAC) clause after a fire at Moranbah North mine, the portfolio's most valuable asset, in March 2025.[4] Prior to Dhilmar’s successful bid, other contenders included Stanmore Resources, Mitsubishi Corp, and BUMA Internasional. Stanmore is majority controlled by an Indonesian private company although listed on the Australian Stock Exchange. BUMA Internasional is an Indonesian-listed mining services company.
Dhilmar Limited was largely unknown before its bid for Anglo American’s assets, and is a privately held, UK-registered mining company. Its sole significant asset prior to this acquisition was a Canadian gold mine, acquired from Newmont Corporation in 2025 for USD795 million. Incorporated only on 13 November 2024, Dhilmar is led by Alexander Ramlie, an Indonesian mining executive who also serves on the board of AMMAN Mineral. Dhilmar Limited has limited experience in Australian coal mining. The financing for the USD2.3 billion initial payment remains unclear, although private credit has historically funded similar cash-generating asset acquisitions.
This pattern of Indonesian asset owner-led acquisitions of Australian coal assets is not new. Examples include Stanmore Resources’ acquisition of BHP Mitsui Coal Pty in 2021 for USD1.4 billion and Golden Energy Resources’ acquisition of the Illawarra Metallurgical Coal in 2024 for USD1.3 billion. Stanmore is listed on the Australian Stock Exchange with a AUD2.6 billion market capitalisation and is 59% owned by Golden Energy and Resources (GEAR), a privately held Indonesian mining company which was delisted from the Singapore Stock Exchange in 2023 to reduce its exposure to thermal coal by spinning off the thermal entity run by its subsidiary Gems.[5]
The central concern is transparency. Private companies face no obligations for quarterly or annual reports, mine safety disclosures, or ESG reporting, and they are not subject to public market pressure. Emerging markets-based companies (including Indonesia-listed companies) [6] may also be perceived as less transparent than companies listed on the Australian, US, or UK stock exchanges, where larger diversified miners are listed. Compounding this, Australian coal miners face rising costs as environmental regulations tighten. Australia’s Safeguard Mechanism now covers methane and CO2 emissions, with further requirements for improved methane measurement and monitoring likely in the future.
A specific concern related to Anglo American’s asset sale involves the history of methane-related incidents at the Moranbah North and Grosvenor underground mines. Over the past five years, these mines have experienced significant methane ignitions, explosions, and underground fires, leading to evacuations, closures, and major safety investigations. Both are underground mines characterized by high gas levels and substantial methane releases during operations.[7] Since methane is highly flammable and explosive, it can be ignited easily when mixed with air when concentration is high.[8] The Moranbah mines have intensive longwall production and complex underground ventilation and gas-drainage systems. This means that if the mining operator does not keep the methane levels below statutory limits – this can create hazardous conditions for miners, which was evidenced in the 2020 explosion, a 2024 month-long fire at Grosvenor and the 2025 fire at Moranbah North.[9] Given the persistent problems Anglo American has faced with these mines since 2020, it is difficult to envision how a privately-held, new coal operator - with significantly less industry experience and financial resources - could manage these mines with greater transparency and safety.
As Dhilmar Ltd negotiates the debt needed to finance the acquisition of Anglo’s metallurgical coal assets, likely via a mix of public and private borrowing, prospective lenders could face additional financial risks with regards to methane management, regulatory risks and restart and operation risks.
Key questions for Dhilmar Ltd include:
- What are Dhilmar’s mine‑by‑mine methane‑management plans, including investments in methane capture, drainage, and destruction infrastructure? Anglo American has reportedly spent more than USD100 million on methane utilisation and mitigation across this coking‑coal portfolio. [10] What capital will be required to maintain or improve these systems, and what are the operational and production‑efficiency risks if investment falls short?
- The Moranbah North mines reportedly exceeded its baseline emissions under Australia’s Safeguard Mechanism 2024-25.[11] What are Dhilmar’s plans to manage future emissions at this mine, especially as a staged restart is expected in 2027 and production - and therefore emissions - are likely to rise? What compliance costs could arise in a higher‑production, higher‑emissions scenario?
- What level of disclosure on production, emissions and methane levels can investors expect from this coal portfolio post-completion of acquisition? Would investors be able to receive asset-level or portfolio climate metrics?
This divestment raises an opportunity for debt-investor led engagement - for prospective investors to make their capital dependent on enhanced transparency and standards.[12]
[1] "https://anthropocenefii.org/transparency/public-to-private-divestment-in-asia-trends-and-best-practice", .” accessed 16 Jun 2026.
[2] "Anglo American agrees sale of steelmaking coal business for up to US$3.875 billion in cash", Anglo Am., 18 May 2026.
[3] The coal portfolio includes 88% of the Moranbah North JV, 88% of the Grosvenor JV, 70% of Capcoal JV, 86.36% Roper Creek JV, 51% interests in the Dawson Dawson South, Theodore South JV, and 50% of the Moranbah South JV. The JV partners are Mitsui, Nippon Steel, POSCO and others.
[4]"Peabody scraps $3.8 billion bid for Anglo American’s coal mines", Reuters, 19 Aug 2025.
[5] "Golden Energy to delist from SGX via cash consideration", Straits Times, 9 Nov 2022.
[6] In Jan 2026, MSCI flagged possible downgrade of Indonesia’s stock market from emerging market to frontier market status if transparency and investability concerns were not addressed. MSCI has extended its review to mid-2026 to evaluate regulatory reforms before reclassification or index changes. "Top Indonesian financial regulators quit after $80 billion market meltdown", 30 Jan 2026.
[7] "Australia: Deadly Grosvenor coal mine prepares to reopen with union support", World Social. Web Site, 15 Aug 2025.
[8] "Methane gas explosions", Qld. Coal Min. Board Inq., Apr 2021.
[9] "Moranbah North alleged explosion underlines danger of methane", Qld. Conserv. Counc., 4 Apr 2025.
[10] "Some of Australia’s dirtiest coal mines are about to change hands. Here’s why we should be worried", Renew Econ., 20 May 2026.
[11] "Moranbah North Mine", Zerra, 2024.
[12] AFII has developed a toolkit for bondholder-led engagement, which can be viewed here.
