Coal news and updates

Indonesia’s Coal Barons Reap Windfall From Rising Demand

Indonesia’s mining barons benefited as China saw its coal supplies disrupted by cold weather and a trade spat with Australia, stoking demand for the fuel. Prices spiked to all-time highs, causing the fortunes of Indonesia’s coal producers to soar. “Financial results of coal miners are improving in line with the rising coal price,” says Dessy Lapagu, an analyst at Samuel Sekuritas Indonesia. “That lifted the share price of coal companies.”

Adaro Energy’s revenue rose over 30% in the first nine months to $2.6 billion from a year earlier, while operational Ebitda grew 70% to $1.2 billion. A 38% jump in Adaro’s shares over the last 12 months has boosted the wealth of its key stakeholders. CEO Garibaldi Thohir saw his net worth increase 58% to $2.6 billion, president commissioner Edwin Soeryadjaya more than doubled his to $1.51 billion, vice president commissioner Theodore Rachmat by 78% to $2.84 billion, and board commissioner Arini Subianto by 60% to $975 million. However, the coal-price surge hasn’t derailed Adaro’s plans to diversify into clean energy. “In the next 10 years, I hope renewable energy can account for 50% of the company’s revenue stream,” says Thohir.