PT Adaro Energy Tbk and EMR Capital are bidding for two coal mines owned by Rio Tinto in Australia. This would increase the company’s production of coking coal, which is more expensive than thermal coal. This is happening at the same time as Adaro’s business transformation from coal producer to multi-service company.
The mines targeted by Adaro - Hail Creek and Kestrel in Queensland - are Rio Tinto’s last coal mines. In 2017, Rio made the strategic decision to shut down its coal business and focus on iron ore, copper, and aluminium. The sale of the mines is expected to reap US$ 2.5 billion.