JAKARTA – PT Delta Dunia Makmur Tbk (DOID), a mining company and mining services contractor, is optimistic about 2025 after successfully acquiring several mines outside Indonesia. One of the key acquisitions is Atlantic Carbon Group, Inc. (ACG), valued at USD 122.4 million or IDR 1.98 trillion.

DOID has acquired a majority stake in ACG, one of the largest producers of ultra-high-grade (UHG) anthracite coal in the United States, marking the company’s expansion into the US market.

“One of the impacts of Atlantic is that since it operates in the US and uses US Dollars, this provides diversification for us. Previously, our business was only denominated in Rupiah and Australian Dollars, and now we also have US Dollars,” explained Iwan Fuad Salim, Director of DOID.

In DOID’s Public Exposé today (10/12), the management acknowledged that the company's net profit decline to a USD 27 million loss by June was caused by the depreciation of the Rupiah and the Australian Dollar against the US Dollar.

“We hope that if there are further fluctuations in the Rupiah against the US Dollar, we will now have a cushion. Earlier in 2024, we didn’t have this buffer, but by the end of this year, we can already see the effects of a more diversified currency mix,” Salim added.

Additionally, Salim noted that anthracite coal is more resilient to price fluctuations. “The price of anthracite continues to rise due to its limited supply compared to demand. We expect diversified contributions from the US market,” he said.

This shift towards non-thermal coal, including anthracite, aligns with DOID’s target to reduce thermal coal's contribution to a maximum of 50% of revenue by 2028. As of the first half of this year, thermal coal accounted for 76% of DOID’s revenue.

“Based on the company’s progress, we are confident that by the end of this year, the proportion of thermal coal will decrease to 72%, as non-thermal coal's contribution will rise from 24% to 28%,” Salim concluded. (ZH)