PT Petrindo Jaya Kreasi Tbk (CUAN), a mining company under the conglomerate of Prajogo Pangestu, is diversifying its business by entering the metallurgical coal and gold mineral mining sectors. The company is targeting the promising prospects of metallurgical coal, widely used in the steel industry.
Expansion to metallurgical coal mining
Michael, the CEO of Petrindo Jaya Kreasi, stated that Indonesia possesses substantial resources of metallurgical coal and gold. The company has adapted its business strategy to capture these opportunities through its subsidiaries, PT Daya Bumindo Karunia (DBK) and PT Intam.
“We are confident that expanding our business scope will drive positive growth for us. This aligns with our business strategy, which focuses on strengthening our competitive position, not only in the energy sector but also in the industrial sector through metallurgical coal mining, which produces coke, a primary raw material in the steel industry,” said Michael on September 4, 2023.
DBK’s metallurgical coal mining operations are located in the Murung Raya Regency, Central Kalimantan. The mining area covering 14,800 hectares is adjacent to coal concessions owned by another subsidiary of the company, PT Bara International (BI). This allows both subsidiaries to utilize the same infrastructure and road access to optimize operational efficiency.
DBK has metallurgical coal resources (measured, indicated, and inferred) totaling 226.1 million tons, with estimated and proven reserves amounting to 99.5 million tons.
Tapping into gold mines
Furthermore, CUAN recognizes the potential of the gold mineral as a valuable and significant mining commodity. Through Intam, which holds a mining concession area of 18,500 hectares in the Sumbawa Regency, West Nusa Tenggara (NTB), the company aims to tap into this opportunity. The concession area is adjacent to two other gold concessions in Sumbawa.
“Business diversification into gold mining represents the company’s transformation to strengthen its portfolio for more sustainable business,” stated Michael.
CUAN’s strategic diversification into metallurgical coal and gold mining underscores its commitment to expanding its presence and contributing to the development of these sectors in Indonesia. This move aligns with the nation’s ambitions to enhance its industrial and mining capabilities.
