Indonesian miner seeks M&A targets in shift from dirtiest coal

“As long as it’s sensible and in line with our strategic pillars, M&A is something we will look at seriously,” said Director Iwan Fuadi Salim in an interview. It currently has $322 million in cash. Anthracite, which emits a quarter of the carbon emissions compared to lower-quality coal, is part of that move, Salim added.

Indonesia’s coal mining industry is undergoing a significant shift as companies diversify. PT Adaro Energy Indonesia is building an aluminum smelter in Kalimantan, PT Harum Energy is looking to buy more nickel mines, while PT Indika Energy and PT United Tractors bought stakes in non-coal mining assets last year.

Delta Dunia is also considering another bond buyback if the market is favorable, especially as the company faces a peak in debt maturities amounting to $355 million in 2026, Salim said.

Indonesian coal producers could become more entrenched dollar-denominated borrowers over the next few years as they seek funding to diversify away from thermal coal, according to Bloomberg Intelligence’s Credit Analyst Mary Ellen Olson.

(By Fathiya Dahrul and Rachel Cicilia)