Adaro plans to increase production capacity of IndoMet

By Thomas Sembiring

IDX-listed coal giant PT Adaro Energy Tbk plans to increase the production capacity of its new 100 percent-owned indirect subsidiary PT IndoMet Coal within the next two years if price of the commodity improves.

Adaro through subsidiary PT Alam Tri Abadi has recently become the 100 percent owner of IndoMet after it recently acquired an additional 75 percent stake from BHP Billiton. IndoMet has seven coal concessions, located in Central and East Kalimantan, but so far only one mine is producing, the Haju mine located in the Lahai concession, which has been in production since 2015 with annual capacity of 1 million tons.

Garibaldi said that the company plans to increase the production capacity of the Haju mine to 1.5 million tons per year. ?But we?ll see the demand the price as well. If the price is good, we?ll push (for higher production,? he said.

Garibaldi said that IndoMet is a good buy as it does not only have thermal coal but also coking coal, which is required by the fast growing metal industry in the country, and the Asian region.

Editing by Reiner Simanjuntak