PT Indo Tambangraya Megah (ITMG) is exploring the opportunity to acquire several mining companies, with a specific focus on nickel.

ITMG Director, Yulius Kurniawan Gozali, said the company's acquisition plans are still in the due diligence stage that detailed information, such as the acquisition value, is not disclosed at this time.

"There are several (mines) in Sulawesi due to the abundance of resources. Then for copper in Kalimantan and Sulawesi, the targeted value is medium to small scale. But currently, it's still in the negotiation stage," Yulius said on Thursday, February 29, 2024.

He said that the company is cautious in carrying out acquisitions, while citing that ITMG will examine all asset documents of the companies to be acquired, such as tax reports of those assets.

"We want to see the documents. For example, if they haven't reported taxes, they have to provide a guarantee before the assets are transferred to us," he explained.

Yulius said that the plan to acquire nickel is due to the high demand of nickel as a commodity. Meanwhile, the coal mining company has recorded a full-year profit attributable to the owners of the parent entity of US$ 500.33 million (IDR 7.82 trillion) at an assumed exchange rate of IDR 15,639 per US dollar throughout 2023.

ITMG's profit plummeted by 58.3 percent compared to the same period in the previous year, which was at US$1.2 billion. Along with the decline in profit, Indo Tambangraya Megah's revenue also decreased. Based on the company's financial report, its net revenue amounted to US$2.37 billion or IDR 37.13 trillion.

The revenue dropped by 34.7 percent in 2023 from the previous US$3.63 billion. The company's revenue comes from coal sales support, with detailed third-party coal revenue amounting to US$2.25 billion.

However, third-party coal revenue decreased by 36.06 percent in 2023 compared to the previous year, which was recorded at US$3.52 billion. This decline is attributed to the falling coal prices and benchmark coal prices.