Indonesian heavy equipment supplier and coal mining services contractor United Tractors (UNTR) has acquired a nickel mining company as part of its broader plans to diversify away from coal.
UNTR has acquired Anugerah Surya Pacific Resources, which has nickel mining and exploration interests in Sulawesi, through a $105mn conditional shares sale and purchase agreement.
UNTR's other acquisitions, in its bid to diversify away from coal, include a gold mine bought through its Agincourt Resources subsidiary and a 40.47pc stake in Indonesian geothermal development company Supreme Energy Sriwijaya bought in August this year.
The coal market is expected to shrink in the next two decades as countries implement programmes to cut down on greenhouse gas emissions, UNTR said. This could result in lower coal prices and erode profitability, so by expanding into other markets it can help shield itself from price fluctuations and develop new business lines, the company added.
Coal output at UNTR's coal services contracting arm rose to 59mn t in this year's first half, up from 50mn t a year earlier. This growth is in line with the company's target to achieve coal output of 117mn t this year.
UNTR is among a number of Indonesian coal companies seeking to diversify their business interests because of expectations that coal demand will fall in the coming years.
Indonesian low-calorific value coal producer Geo Energy said in August that it had diversified its portfolio by investing $4mn in Singapore-headquartered electric motorcycle producer Charged Asia.
Indonesian coal producer Indika Energy invested in a joint-venture company with Taiwanese firm Foxconn last year to develop electric buses and batteries. Indika has set a target to receive 50pc of its revenues from its non-coal business by 2025, as a part of its long-term goal to entirely transition away from coal and expand its presence in renewables and the non-energy space. Coal accounted for almost 90pc of the group's $1.67bn revenues during January-June this year.
