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RMKE Acquires Three Coal Mines in Jambi for Rp1.3 Trillion
WINDONESIA September 5, 2024
RMKE's coal terminal. (RMK Energy)
RMK Energy (RMKE) have acquired three coal mines in Jambi with a transaction value of US$80 million (about Rp1.3 trillion) through Nusantara Bara Tambang (NBT), a subsidiary with 55 percent of its shares owned by RMKE.
The transaction was carried out on July 16, 2024 with a share purchase agreement between NBT as the buyer and Nusantara Energy (NEL) and Nusantara (Luxembourg) or NS as the seller.
NBT will acquire all shares of NEL and NS in Artha Nusantara Mining (ANM) and Artha Nusantara Resources (ANR). ANM and ANR have three mining subsidiaries, Sinar Anugerah Sukses (SAS), Anugerah Jambi Coalindo (AJC), and Bakti Sarolangun Sejahtera (BSS).
Their three mines in Jambi have 537.7 million tons of projected coal reserves, with proven reserves of around 180 million tons of coal at a stripping ratio of 3:1. The three mines have also produced a total of 700,000 metric tons (MT) of coal in 2023.
RMKE President Director Vincent Saputra revealed that RMKE and its business group will build several integrated logistical facilities, including in the South Sumatra operational area. The three mines will be integrated with a 109 km hauling road, stockpiles, loading conveyors, and a port.
The acquisition transaction for the three mines is part of RMKE's strategies to diversify its operational geographic areas by looking at opportunities outside South Sumatra Province.
"We see that Jambi has a great opportunity to optimize its coal production with more integrated infrastructure development," Vincent stated in a release received by Kontan.co.id on July 19, 2024.
RMKE Operations Director William Saputra added that the volume of the coal service and sales segments in June 2024 continued to increase with increasingly hospitable weather conditions heading into the second half (H2) of 2024. The volume of coal loading to barges in June 2024 reached its highest volume during RMKE's operations.
"With operations in South Sumatra having improved significantly and the potential for new revenue generators from RMKE's business expansion in Jambi, we are very optimistic about maintaining sustainable operational and financial performance growth, not only for RMKE but also for RMK Group Indonesia," William explained.
The acquisition transaction for these three mines will support RMKE to increase in-house coal production by 1.2 million MT from 2023 to 2.2 million MT in 2024.
"With increasing in-house coal production, the company is optimistic that it can sell 3.3 million MT of coal this year," William divulged.
Source: investasi.kontan.co.id