Indonesian coal producer Adaro Energy intended to diversify its business development plans by shifting its core business from thermal coal to wider scope by 2030, foreign media reported.

Adaro Energy claimed that its goal was to transform into non-thermal coal businesses to expand revenue sources and reduce carbon footprints in 2022, concentrating mainly on expanding metal business and hydropower generation business.

In addition, the company also focused on coking coal business, aiming to produce 6 million tonnes of coking coal by 2025. The company's coking coal production is estimated at 3.8-4.3 million tonnes this year, showed data from Adaro Energy.

The company said that it still makes sense to develop metallurgical coal business since many industries continued to use steel even with the shift to cleaner energy around the world.

Adaro Energy will build an aluminum smelter complex at north Kalimantan. The first phase of construction is scheduled to start by the end of 2025 with initial output at 500,000 tonnes per annum. It is expected to reach full capacity of 1.5 million tonnes per year within the next few years, data showed.

Additionally, the company spent $2.6 billion to build a hydropower plant with total installed capacity at 1.375 GW, which is expected to be put into operation in 2030. The plant could meet the power demands of the smelter and also other industries in the region.

(Writing by yan.sun  Editing by Emma Yang)
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