JAKARTA – PT BUMA Internasional Grup Tbk (DOID) aims to reduce its thermal coal segment’s revenue share to 50% by 2028. This target will be supported by the acquisition of three new mines in the United States (US) and Australia.

DOID acquired a majority stake in Atlantic Carbon Group, Inc (ACG) in June 2024. ACG is an ultra-high grade (UHG) anthracite producer in the US, which is used in the production of low-carbon steel.

Additionally, DOID announced the acquisition of a 51% stake in Dawson Complex, a coking or metallurgical coal mine in Australia, in November 2024. The acquisition is expected to be completed by the second quarter of this year.

“We are still waiting for approval from the Australian government and Mitsui, our partner in Dawson,” said Iwan Fuad Salim, DOID’s Director, during an interview in Jakarta, Monday (24/3).

DOID also started investing in 29Metals Ltd in December 2024, a mineral mining company in Australia. As of December 2024, DOID’s shareholding reached 19.9%.

“What we are doing now is expanding beyond coal, like with 29Metals and Asiamet, and beyond thermal coal, to ensure we reach our aspiration of a maximum 50% of revenue from thermal,” said Iwan.

As of Q3 2024, DOID’s non-thermal coal segment contributed 26% of revenue, up 3% year-to-date (ytd).

On the other hand, Iwan acknowledged that owning mines is also a strategic step for the company to increase profit margins.

“Coal is a cyclical industry, very volatile; there are ups and downs. So, higher margins are with the mine owners, not service contractors,” he explained.

While mining services provide steady income, Iwan noted that owning mines allows for greater profit through supply sales at times that offer higher margins.

DOID reported a net loss of USD 14 million at the end of Q3 2024, plummeting from a net profit of USD 21.6 million. Despite this, revenue remained relatively stable, dropping only 1% year-on-year (yoy) to USD 1.35 billion.

According to Iwan, the weak bottom-line performance was influenced by adverse weather conditions that disrupted production in both Indonesia and Australia, where rainfall increased by 38% and 53%, respectively. (ZH)