The growth of Adaro Group’s operations have also come with the opportunities to keep expanding the group’s operations domestically and internationally, as well as the need to optimize the group’s finances through investments in financial instruments. The Adaro Capital business pillar was established to take on all these roles to capitalize on the group’s financial resources and extensive networks for capturing profitable investment opportunities that will generate significant returns for the shareholders.
Through its subsidiaries, Adaro Capital has been making its way to be one of the group’s profit centers by engaging in several business deals and is rising to play an even bigger role in the group by constantly seeking the lucrative potentials in both real and financial sectors. The Adaro Capital pillar is supported by several subsidiaries based overseas, such as Arindo Holdings (Mauritius) Ltd., Adaro Capital Ltd. and Vindoor Investments Ltd.
Arindo Holdings (Mauritius) Limited (Arindo)
Arindo is a public company listed on the Stock Exchange of Mauritius Ltd (SEM). Through its subsidiary, CTI, Arindo carries out an important role in investment holding and is actively engaging in the business of trading and brokerage of thermal and metallurgical coals. Arindo will continue to capture the opportunities arising from the growing energy sector in Asia Pacific by utilizing the solid platform provided by the group’s network of companies and its integrated businesses.
Adaro Capital Limited (ACL)
ACL is a company under the Adaro Capital pillar established to be the Adaro Group’s treasury center for investments in financial instruments as well as in coal and other minerals to generate maximum value for the shareholders. In 2018, ACL acquired Rio Tinto’s 80% interest in the Kestrel coal mine (Kestrel), in a joint venture with EMR Capital, a specialist mining private equity manager.
Kestrel is located in the Bowen Basin, the world’s premier metallurgical coal region. In 2019, Kestrel recorded saleable coal production of 6.76 Mt, 42% growth y-o-y and in-line with its 2019 production guidance. Kestrel had marketable coal reserves of 145 Mt and resources of 428 Mt as at 1 October 2019.
The acquisition of Kestrel is a significant milestone in the Adaro Group’s strategic expansion of metallurgical coal portfolio which will strengthen its foothold in the metallurgical coal market and support its growth over the longer term.