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RI coal miners diversify to gear up for energy transition
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Industry challenges ahead: Heavy equipment is in use at a coal mine at Sumber Batu village, West Aceh regency, Aceh, on May 24. (Antara/Syifa Yulinnas)
C
oal mining firms in Indonesia are spending billions of dollars on deals and raising budgets for new projects in a bet on the energy transition amid growing pressure to move away from the dirty fuel.
PT Bumi Resources (BUMI), Indonesia’s largest thermal coal miner, said the company aimed to earn half of its revenue outside of the coal sector three or four years from now.
BUMI corporate secretary Dileep Srivastava said the company recognized the need for diversification due to the depletion of coal assets, the global “green hysteria” and pressure on the industry.
“Next year, the company will focus on two major areas beyond thermal coal: Coal-to-chemical [processing], possibly ammonia and methanol, as well as metal projects,” he told The Jakarta Post on Dec 10.
The publicly listed company is banking on investments in PT Bumi Resources Minerals (BRMS) and integrated mining services company PT Darma Henwa to enhance its capability in developing coal downstream projects and supporting its foray into non-coal business fields, including renewable energy and metals.
“This strategic shift aligns with global trends toward sustainability and positions us to mitigate risks associated with the energy transition,” Srivastava said.
The coal production capacity of Indonesia, the world's leading coal exporter, continues to expand.
