PT Adaro Energy Indonesia, which is one of Indonesia’s biggest coal miners, has released plans to spin off a coal mining unit valued at US$2.45 billion as part of a green shift, reported Bloomberg.
The miner aims to offload its 99.9% stake in Adaro Andalan Indonesia and will seek shareholder approval for the plan on 18 October, according to a local exchange filing. The sale will be conducted as part of a public offering.
In the filing, Adaro said that separating its core coal business from its minerals and green energy segments will allow it to access more financial resources. The company has also committed to boosting its non-coal revenue to more than half by the end of the decade, and keep coal output flat for 2024.
Bloomberg noted that Indonesia remains the world’s top exporter of thermal coal, and continues to rely on it for most of its domestic energy needs.
Source: Bloomberg