JAKARTA (TheInsiderStories)–PT Adaro Energy Tbk (IDX: ADRO) and EMR Capital Ltd completed acquisition process in Kestrel Coal Mine on Wednesday (01/08).
It is a follow-up of an agreement between Adaro and EMR on March 27, 2018, to acquire 80 percent of Rio Tinto‘s coal asset Kestrel in Australia.
The ownership in the company after the transaction completed will be Kestrel Coal Resource Pty Ltd (80 percent) and Mitsui Coal Australia (20 percent). Kestrel Coal Resources is a joint venture company between ADRO and EMR with ownership of 48 percent and 52 percent, respectively.
Adaro and EMR reportedly spend US$2.25 billion for this acquisition. EMR Capital Ltd is a private equity company specializing in the mining sector.
President Director and CEO of Adaro Energy Garibaldi Thohir said the Kestrel acquisition is an important step in the company’s expansion in the metallurgical coal that has been started with Adaro MetCoal.
Kestrel has adequate metallurgical coal resources with a capable infrastructure and high-skill manpower. It is located in the 40 kilometers north of the Emerald city in the Bowen Basin, Queensland, Australia.
Kestrel produced 4.25 million tonnes of metallurgical coal in 2017 and has a marketable reserve of 146 million ton and resource of 241 million ton.
Thohir earlier said the company aims to double Kestrel Mine’s production in attempts to bring the company to become one of the world’s largest coking coal producers. He aimed to raise Kestrel Mine’s current production to 10 million metric tons of coking coal per year from current 5.5 million tons.
Adaro Energy booked 24.06 million ton coal production in the first semester of this year, a 4 percent down from the first semester last year. The company targets coal production of 54-56 million ton this year.
The lower production made the company recorded lower sales in the first half of this year at 23.80 million ton or decreased 6 percent from the same period last year.
The domestic market contributed to 22 percent of total sales in the first semester this year, followed by export to Malaysia (12 percent), China (12 percent), India (12 percent), Japan (10 percent), South Korea (9 percent), Hong Kong (8 percent), Spain (5 percent), Taiwan (4 percent), Philippines (3 percent), Thailand (2 percent), and others (1 percent).
Adaro Energy recorded US$74.43 million in net income in the first quarter this year, 23.37 percent lower than US$97.13 million in the first quarter last year.