RMK Energy Acquires 3 Mines In Jambi With A Value Of IDR 1.3 Trillion

Coal (photo: dock. intermediate)

PT RMK Energy Tbk (RMKE) acquired 3 mines in Jambi through the purchase of shares by PT Nusantara Bara Tambang (NBT), an indirect subsidiary with 55 percent share ownership.

This transaction was carried out on July 16, 2024 by signing a share sale and purchase agreement by Nusantara Energy Limited (NEL) and Nusantara (Luxembourg) SARL (NS) as the seller along with NBT as the buyer. NBT will acquire all NEL and NS shares in PT Artha Nusantara Mining (ANM) and PT Artha Nusantara Resources (ANR) with a transaction value of USD80 million (or equivalent to IDR 1.3 trillion).

ANM and ANR have 3 mining subsidiaries PT Sinar Anugerah Sukses (SAS), PT Anugerah Jambi Coalindo (AJC) and PT Bakti Sarolangun Sejahtera (BSS). These three mines are located in Jambi and have resources of 537.7 million tons of coal with a revenue prove of around 180 million tons of coal at stripping ratio 3:1.

The three mines in total have produced 700,000 MT of coal last year. Together with its business group, RMKE will build several integrated logistics facilities such as in the Company's operational area in South Sumatra. The three mines will be integrated with 109 km of hauling road, stockpiles, loading conveyors, to ports (jetty).

President Director of the Company, Vincent Saputra, said that this acquisition transaction of 3 mines is a form of implementation of the RMKE strategy to diversify its operational geographic area by looking at opportunities outside South Sumatra.

"We see Jambi as having a great opportunity to optimize its coal production with more integrated infrastructure development. Similar to obstacles in South Sumatra, RMKE is present as a coal logistics solution with more integrated facilities to optimize production volume. Armed with the experience we have done in the South Sumatra area, we are confident that we can optimize coal potential in Jambi and contribute to RMKE's future operational and financial performance," Vincent said in his written statement, Jakarta, Friday, July 19.

On the same occasion, the Director of Operations of the Company, William Saputra also explained that with the increasingly friendly weather conditions in the second half of this year, the volume of the coal service and sales segment in June 2024 continued to increase significantly. The volume of coal cargo to barges in June reached its highest volume during the RMKE operation.

"With operations in South Sumatra that have improved significantly and the potential for new revenue generators originating from the RMKE business expansion in Jambi, we are very optimistic that it will maintain sustainable operational and financial performance growth, not only RMKE but also RMK Group Indonesia," explained William.

"With this acquisition transaction of 3 mines, it will support RMKE to increase in-house coal production to 2.2 million MT or an increase of 1.2 million MT from in-house production last year. With in-house coal production increasing, the Company is optimistic that it can sell coal of 3.3 million MT this year," added William.