ABM corporate strategy director Yovie Priadi said on Tuesday that his firm would allocate around $500 million to develop and expand its non-coal-mining business, including coal-fired power plants, retail logistics, international projects and gas-fired power plants.

The firm would use its equity and bank loans to finance the five-year development and expansion plans, he continued.

'€œFrom the total funds needed, between $300 million and $400 million will be allocated to develop coal-fired power plants across the country,'€ he said.

The firm aims to build a number of power plants, ranging in output from 1,000 megawatts (MW) to 1,500 MW in the next five years, most of which will be coal-fired.

ABM believes that expanding its business portfolio outside of coal mining will be of great importance in helping the firm to reduce its heavy reliance on strong coal prices.

The company'€™s coal-mining business made up around 60 to 70 percent of its total revenue last year, leaving it heavily exposed to the global coal-price slump.

The firm, listed on the stock exchange as ABMM, saw its revenue decline by 6.9 percent, to $723.6 million last year from $777 million in 2013.

It recorded net losses of $113.7 million last year, compared to $4.6 million in net profit the previous year.

The firm aims to pocket between $1.5 billion and $2 billion in revenue in 2020, once all of its development and expansion plans have materialized. (ren)(++++)

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