The Adaro Group has transformed into an integrated end-to-end coal supply chain that spans from coal mining to power generation. The operations have grown vertically to a much larger size as well as horizontally to include many different industries, both directly and indirectly related to its core business. Also come with this transformation are the opportunities to keep expanding the operations domestically and internationally as well as the need to optimize the group’s finances through cross-border investments in financial instruments.
In 2017, AE added the Adaro Capital business pillar to take on all these roles. This pillar was prepared to capitalize on the group’s financial resources and extensive networks for capturing profitable overseas 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 from business opportunities outside Indonesia, in both real and financial sectors. In doing so, this pillar is supported by several subsidiaries based overseas, such as Arindo Holdings (Mauritius) Ltd., Adaro Capital Ltd. and Coaltrade Services International Pte. Ltd., a service company which handles the group’s international coal trades under the Adaro Services pillar and observes the global and regional trends of the coal industry to keep an eye on prospective international business engagements.
Arindo Holdings (Mauritius) Limited (Arindo)
Arindo is a public company listed on the Stock Exchange of Mauritius Ltd (SEM). Through its subsidiary, 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.
On 11 th June 2018, the Listing Executive Committee of the SEM approved the listing by way of placement of additional ordinary shares up to 5% of Arindo’s issued shares or 1,450,758 shares on the Official Market. These ordinary shares have been listed on the Official Market of the SEM since 2nd July 2018.
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 outside Indonesia to generate maximum value for the shareholders. However, in its development ACL found an opportunity to engage is a highly prestigious transaction that led to its 2018’s acquisition of 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. It had marketable reserves of 151 Mt and resources of 431 Mt as at 1 st December 2018. Kestrel’s coal has a solid market base in the global metallurgical coal market due to its quality and is especially favored by Japanese steel makers. The acquisition of Kestrel is a significant milestone in the Adaro Group’s strategic expansion of metallurgical coal portfolio, after the previous acquisition of Adaro MetCoal Companies (AMC). This move is going to strengthen its foothold in the metallurgical coal market and support its growth over the longer term since its product portfolio now include Australian premium hard coking coal.