Giant dump trucks lined up in readiness for despatch to their next load at the Tutupan pit - Photo by Adaro Energy

JAKARTA (TheInsiderStories) – Publicly listed coal miner PT Adaro Energy Tbk joint with private equity manager EMR Capital acquired 80 per cent Rio Tinto‘s coal asset Kestrel in Australia for $US2.25 billion, the company said on Tuesday (27/03).

The Kestrel mine located in the Bowen Basin, the world premier metallurgical coal region, Kestrel produced 4.25 Metric ton (Mt) of hard cooking coal, had marketable reserves of 146 Mt and resources of 241 Mt in 2017.

Garibaldi Thohir, Chief Executive Officer of Adaro, said, “The acquisition of the Kestrel mine is a significant milestone in Adaro’s strategic expansion of its portfolio of metallurgical coal as well as one of its largest investments outside of Indonesia.”

Adding by Jason Chang, Chief Executive Officer of EMR: “Coking coal is one of our four core commodities and it offers excellent demand and supply fundamentals for decades into the future.”

Recently Thohir said, his company eyeing power plant projects in Vietnam, Laos, Myanmar and other regional nations, looking to enter global market through its overseas investment arm Arindo Holdings, an affiliate of the company based in Mauritius.

Arindo recently raised US$12.1 million from an initial public offering at the Stock Exchange of Mauritius. The Mauritius-based company put up 1.3 million shares or equivalent to 5 per cent of its equity, at $11.45 apiece.

Arindo is an investment holding firm founded in Mauritius on March 28, 2005, with the important role of facilitating investment opportunities abroad. Adaro is targeting expansion of its logistics and power generation business, as well as optimizing its mining sites for future projects.

He mentioned how his company intends to develop power plants in South Kalimantan, in collaboration with state-owned power producer PT Perusahaan Listrik Negara it will focus on mine-mouth power projects in Kalimantan and several other areas across the country.

Adaro says it aims to build 5,000 megawatts (MW) of power generation capability, up from a current 2,260 MW.

A unit of investment company PT Saratoga Investama Sedaya Tbk (IDX: SRTG) has three arms to manage power plants in the country, namely, PT Makmur Sejahtera Wisesa, owner & operator of the 2x30MW at Kalsel Bhimasena Power (100 per cent); Cooperation with 2x1000MW power plant project in Central Java Jateng Power (34 per cent) and 2x100MW power plant project in South Kalimantan (65 per cent).

In 2016, the company produced 50.77 Mt of coal and overburden removal a229.30 million bank cubic meter (Mbcm), resulting in a strip ratio of 4.52x. Currently, Adaro has seven IUP’s contain a large contiguous coal deposit close to the surface with an estimated resource of 7.96 billion tonnes.

Written by Linda Silaen, Email: linda.silaen@theinsiderstories.com

 

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The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.

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