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AlamTri Resources

PT AlamTri Resources Tbk is a publicly traded company engaged in , and , services, and renewable energy development, operating primarily through subsidiaries in provinces. Formerly known as PT Adaro Energy Tbk until a approved by shareholders in November 2024, it has undergone a significant by spinning off its assets into a separate entity, PT Andalan Coal , while retaining a minority stake and shifting emphasis toward production and downstream projects such as aluminum powered by . This positions AlamTri as a key player in 's transition toward value-added and green energy, with its subsidiary achieving 6.63 million tonnes of production in 2024 alongside plans for expanded aluminum output reaching up to 1.5 million tonnes annually. The company's strategic pivot reflects efforts to align with global demands for lower-carbon commodities, though its historical roots in have drawn scrutiny over environmental and impacts in regions.

Overview

Corporate Profile

PT AlamTri Resources Indonesia Tbk (IDX: ADRO) is an integrated mining company headquartered in , , with principal operations in the Tabalong district of . Formerly known as PT Adaro Energy Indonesia Tbk, it specializes in mining, , mining services, and development, operating through subsidiaries focused on vertically integrated value chains from extraction to processing. As Indonesia's second-largest coal producer by production volume, AlamTri manages significant assets including the Tutupan , one of the largest single-site coal operations in the . As of 2024, the company's resources total 982.9 million tonnes, with proven and probable reserves of 177.2 million tonnes, primarily supporting output. In late 2024, AlamTri divested its thermal operations via the spin-off and partial sale of PT Adaro Andalan Tbk (IDX: AADI), retaining a minority stake while redirecting focus toward premium exports, diversification, and ventures. This positions the company as a key contributor to 's resource , employing approximately 10,400 personnel and facilitating substantial revenues from high-quality products.

Leadership and Ownership

PT Alamtri Resources Indonesia Tbk is governed by a Board of Commissioners chaired by President Commissioner Edwin Soeryadjaya, with Garibaldi Thohir as Vice President Commissioner, overseeing strategic direction and ensuring alignment with shareholder interests. The executive leadership is headed by President Director and CEO Iwan Dewono Budiyuwono, appointed in June 2025, who manages day-to-day operations alongside other directors responsible for , , and segments. Garibaldi Thohir, transitioning from CEO to Vice President Commissioner in June 2025, and Edwin Soeryadjaya were key figures in the November 2024 rebranding from PT Adaro Energy Tbk to PT Alamtri Resources Tbk, a move intended to highlight diversified resource operations while reinforcing national operational focus. The company has been publicly listed on the since July 16, 2008, under ticker ADRO, with approximately 29.39 billion shares outstanding as of recent filings. Major ownership is concentrated among Indonesian investors, including Garibaldi Thohir holding 1.976 billion shares (roughly 6.7%) and Edwin Soeryadjaya with 1.052 billion shares (about 3.6%) as of March 31, 2025; institutional and public holdings comprise the balance, with no dominant foreign stakes. While the company's origins trace to 1970s exploration concessions involving the state-owned Enadimsa, which named the core entity after a historic mining family, subsequent divestments have shifted control to Indonesian entities, emphasizing domestic governance and resource sovereignty in line with post-rebranding priorities.

Historical Development

Origins and Early Operations (1970s–2004)

In 1976, the Indonesian Department of Mines divided coal exploration areas in East and South Kalimantan into eight blocks and solicited international tenders for development rights. Empresa Nacional de Investigación y Minería de Hierro, S.A. (Enadimsa), a state-owned firm, secured the concession for Block 2, encompassing the Tanjung area in , which contained significant thermal deposits. This marked the initial foreign entry into systematic exploration in the region amid Indonesia's push to develop its untapped resources under the government's resource-led industrialization strategy. PT Adaro Indonesia was formally incorporated on November 2, 1982, to oversee operations in the concession area, with Enadimsa as the initial majority stakeholder. That same day, the company signed its Coal Cooperation Agreement (CCA), a first-generation contract granting exclusive mining rights under terms that included exploration commitments, production sharing, and infrastructure development obligations, valid initially until 2022 with potential extensions. Enadimsa conducted exploratory drilling from 1983 to 1989, delineating reserves of low-ash, low-sulfur sub-bituminous coal suitable for thermal power generation, which would later be branded Envirocoal for its relatively lower emissions profile compared to higher-sulfur alternatives. In 1989, Enadimsa divested 80% of its stake to a consortium comprising Australian resource firms and Indonesian investors, aligning with Indonesia's resource nationalism policies that mandated progressive local ownership to retain economic benefits domestically. Commercial mining commenced in 1991 with the first shipment of Envirocoal from the Tutupan pit in Tabalong Regency, , utilizing open-pit methods and initial removal via hydraulic excavators and truck-haul systems. Early operations emphasized integrated pit-to-port to minimize costs, including construction of access roads, a dedicated coal terminal at Kelanis, and via the Barito to deep-sea vessels, overcoming logistical hurdles in the remote, forested terrain. Production ramped up steadily, reaching several million tonnes annually by the late 1990s, though challenges persisted from regulatory pressures for , environmental compliance under evolving forestry laws, and requirements that further localized control. By 2004, amid preparations for broader corporate structuring ahead of public listing, PT Padang Karunia was established as a holding entity focused on consolidating and assets in Tabalong, prioritizing efficient overburden stripping, processing, and export-oriented operations to sustain competitiveness in Southeast Asian thermal markets. This setup addressed ongoing infrastructure gaps, such as river dredging for barge capacity and port expansions, while navigating Indonesia's post-1998 decentralization reforms that intensified local resource governance demands.

Expansion and Public Listing (2005–2020)

In July 2008, PT Adaro Energy Tbk conducted an on the (IDX) under the ticker ADRO, raising approximately $1.3 billion in Indonesia's largest IPO to date, which provided capital for expanding operations beyond core mining into across and power generation. The IPO, oversubscribed fivefold, valued the company at around 35.3 trillion rupiah and enabled investments in subsidiaries for handling, transportation via barges and vessels, and facilities, forming a "pit-to-power" model that reduced reliance on third-party services and improved cost efficiency amid rising global thermal demand. Production capacity expanded significantly post-IPO, with output growing from 42.1 million metric tons in 2007 to 47.7 million metric tons by 2011, supported by enhancements at the Tutupan mine and of additional pits, achieving operational capacities exceeding 110,000 tons per day by the mid-2010s through fleet modernization and upgrades. This scaling facilitated peak coal exports, primarily low-pollutant marketed under the Envirocoal brand, driven by demand from Asian markets like and , with logistics subsidiaries such as PT Adaro Indonesia handling transport capacities up to 165,000 tons per day via floating transfer stations and self-unloading vessels. Strategic diversification included entry into power generation, with PT Adaro Power establishing coal-fired plants to utilize domestic output; a key project was the 2,000 MW Power Project in Batang, where Adaro held stakes through joint ventures, advancing construction from 2016 after prior delays to support Indonesia's electrification goals with capacities targeting commercial operation by 2020. Subsidiaries for supporting services, including and water management, further integrated operations, while selective non-coal explorations laid groundwork for future assets without shifting core thermal focus during this period. By 2019, these efforts yielded consolidated of $3.45 billion and of $404 million, reflecting robust cash flows from scaled production and exports despite commodity price volatility.

Rebranding and Strategic Shift (2021–Present)

In February 2022, PT Adaro Energy Tbk rebranded to PT Adaro Energy Tbk to emphasize its national identity and pride as an enterprise. This change aligned with efforts to strengthen domestic operational focus amid growing emphasis on local resource management. The company underwent a further in November 2024, becoming PT AlamTri Resources Tbk following shareholder approval on November 18 and official implementation around November 20. This shift reflected a strategic pivot to highlight diversified resource portfolios beyond traditional energy, incorporating , critical minerals, and renewable initiatives, while addressing investor pressures from global decarbonization trends that constrained thermal coal financing. Concurrently, AlamTri divested its thermal coal operations through the of PT Adaro Andalan Tbk, retaining a 15% stake, which separated revenue streams and enabled emphasis on higher-value segments less vulnerable to phase-out policies. Key milestones included the abandonment of further thermal coal exploration and expansion plans, announced amid mounting international scrutiny and market signals favoring low-carbon alternatives. The company launched AlamTri Geo to oversee and , including operations under subsidiary PT Alamtri Minerals Indonesia Tbk (IDX: ADMR), which holds concessions in East and for premium coking coal essential to production. Parallel efforts advanced through AlamTri Eco, targeting ventures such as , solar, and wind projects, with investments exceeding IDR 66 billion in Riau Islands initiatives and broader commitments to 1.4 GW capacity developments supporting 's green transition while leveraging baseload stability from existing domestic energy infrastructure. These moves responded to policy and market dynamics, including Indonesia's reliance on for affordable power amid uneven global renewable scaling, yet positioned AlamTri to capitalize on demand for minerals in supply chains. distributions underscored financial resilience, with interim payouts for 2024 totaling US$200 million and further approvals for US$500 million in 2025, reflecting capital returns from diversified assets post-spin-off.

Business Operations

Coal and Mineral Mining

PT Alamtri Resources Indonesia Tbk conducts its coal mining operations primarily through subsidiary PT Alamtri Minerals Indonesia Tbk, which manages five Coal Contracts of Work covering 146,579 hectares in and , with key activities centered in the Tabalong Regency of . Following the 2024 spin-off of coal assets to PT Adaro Andalan Indonesia, in which Alamtri retained a 15% stake, the company shifted emphasis to extraction, divesting direct operations to align with metallurgical-focused production. This transition leverages reserves of 177.2 million tonnes and resources of 982.9 million tonnes as of December 2023, targeting annual metallurgical output of approximately 5 million tonnes with a of 3.6:1. Metallurgical coal varieties produced include hard coking coal, semi-hard coking coal, green , semi-soft coking coal, and pulverized coal injection grades, characterized by low ash, low phosphorus, low sulfur, and high vitrinite content suitable for coke production. Operations employ techniques across subsidiaries such as PT Juloi , PT Kalteng , PT Sumber Barito , PT Lahai , and PT Maruwai , enabling efficient integrated with on-site crushing facilities in areas like Wara, Tabalong. Historically, under prior branding, annual thermal coal production reached 40.6 million tonnes in , scaling to over 52 million tonnes by 2013 through similar high-efficiency methods that minimized impurities akin to the Envirocoal profile of low-pollutant thermal grades. Mineral mining beyond coal is limited, with PT Alamtri Minerals Indonesia Tbk subsidiaries focused on supporting metallurgical processing rather than primary non-coal extraction; however, the group advances integrated mineral activities, including development of an aluminum smelter in North Kalimantan's green industrial park via PT Kalimantan Aluminium Industry, slated for completion by late 2025 to process imported bauxite into aluminum using captive power. Pit-to-port integration enhances export competitiveness, with mining output transported via dedicated logistics to ports for global steel industry supply chains, reducing costs through controlled overburden management and proximity to infrastructure.

Energy Generation and Renewables

AlamTri Resources has historically operated coal-fired power plants integral to Indonesia's , providing baseload for industrial and grid needs. Through PT Adaro Power, the company developed facilities including a 2x30 MW plant and contributed to larger projects, with gross reaching 2,260 MW as of recent assessments, supporting reliable and affordable amid the country's growing . These assets have played a key role in , utilizing domestic resources to minimize import reliance and stabilize supply in regions like , where a 600 MW mine-mouth plant was planned. In tandem with its coal-based operations, AlamTri maintains ongoing holdings in thermal generation following the March 2025 spin-off of its thermal coal business into PT Adaro Andalan Indonesia Tbk, retaining a minority stake that links it to non-renewable output. This structure allows continued revenue from power while directing primary focus toward renewables, though critics note the separation does not eliminate emissions tied to retained interests or planned systems. The company's renewables pivot emphasizes , , and solutions via AlamTri Eco and related units. Notable projects include a photovoltaic plant in and developments to integrate intermittent sources into the grid. A flagship initiative is the 1.4 GW Mentarang Induk hydroelectric plant in , planned to generate up to 9 TWh annually and green industrial estates, including phases of the aluminum smelter complex. For the smelter, initial phases rely on coal-renewable , transitioning to hydro-dominated supply by 2029 to enable low-emission aluminum of up to 500,000 tonnes per annum per . These efforts balance empirical needs for dispatchable energy from —critical for Indonesia's baseload stability and cost-effectiveness, with coal plants achieving high capacity factors—against renewables' lower emissions profile, though and developments face challenges like seasonal variability and upfront . AlamTri's strategy aligns with national goals for net-zero by 2060, prioritizing scalable assets in to offset fossil dependencies without forgoing industrial growth.

Logistics and Supporting Services

AlamTri Resources operates an integrated logistics network tailored to its export needs, featuring barge transportation, dedicated port infrastructure, and ship-loading facilities primarily in . This system facilitates the movement of from inland mining sites to seaports via a fleet of self-propelled and push-boats, with capacities exceeding 10,000 deadweight tons per barge, enabling high-volume, low-cost delivery to customers in and beyond. Channel and maintenance ensure navigability along key routes, supporting consistent throughput volumes that reached approximately 50 million tons annually in recent operations. Subsidiaries within the logistics segment, such as those handling handling and services, provide ancillary functions including temporary stockpiling, blending to meet specifications, stevedoring, and multipurpose operations. These services extend to and warehousing, optimizing inventory management and reducing turnaround times for shipments. The vertically integrated approach minimizes reliance on third-party providers, lowering overall transportation costs to around $5-7 per for and loading combined, as reported in company disclosures. Supporting services encompass mining-related utilities and infrastructure, including water supply systems for operational needs and land management for access roads and facilities. Specialized units deliver overburden removal, drilling support, and logistical coordination at mine sites, enhancing efficiency without overlapping core extraction activities. These elements contribute to the company's vertical integration strategy, where logistics and utilities account for a targeted 10-15% of total operating costs, aiding competitiveness in global coal markets.

Financial Performance

AlamTri Resources Indonesia Tbk's revenue expanded steadily from its 2008 , reaching approximately USD 3.457 billion in 2019, driven by consistent thermal sales volumes and operational efficiencies in low-cost Envirocoal production. This growth reflected the company's focus on cost-effective mining in , where production costs remained below USD 30 per amid stable global demand for Indonesian exports. Post-2020, revenue exhibited sharp volatility linked to international price fluctuations; it dipped to USD 2.535 billion in 2020 due to pandemic-induced suppression and lower benchmark prices, before surging to USD 3.993 billion in 2021 and peaking at USD 8.102 billion in 2022 amid the global energy crisis and elevated metallurgical and benchmarks exceeding USD 200 per . Profitability followed suit, with climbing from USD 435 million in 2019 to USD 1.528 billion in 2022, supported by gross margins above 40% from diversified sales into higher-value minerals and operations that offset exposure. By 2023, revenue contracted to USD 2.135 billion as coal prices normalized below USD 150 per tonne and sales volumes moderated amid softening Chinese import demand, yielding net income of USD 776 million and compressing EBITDA margins to around 36%. Total assets hovered near USD 7 billion through this period, bolstered by cash reserves from peak-year earnings but pressured by ESG-driven financing constraints, including withdrawals by international banks citing coal-related risks. In the 2023 Forbes Global 2000 ranking, AlamTri placed 1393rd worldwide, reflecting its scale despite sector headwinds.
YearRevenue (USD billion)Net Income (USD million)Key Driver
20193.457435Steady export volumes
20202.535159 demand drop
20213.9931,028Price recovery
20228.1021,528Energy crisis peak
20232.135776Price normalization

Reserves, Resources, and Dividends

As of December 31, 2024, post-divestitures and spin-offs including the separation of thermal operations, AlamTri Resources Tbk reported consolidated resources of 982.9 million tonnes and reserves of 177.2 million tonnes across its concessions. These JORC-compliant estimates, primarily from subsidiaries like Alamtri Minerals Tbk, support an extended mine life for premium production, with reserves concentrated in key assets such as Maruwai Coal's Lampunut (86.1 million tonnes). The resource base emphasizes stewardship of economically viable deposits, enabling targeted extraction amid global shifts toward higher-value minerals. AlamTri Resources has prioritized shareholder returns through , distributing approximately US$4.2 billion cumulatively from 2008 to 2024 at an average payout ratio of 46%. Annual payouts varied with profitability, including US$800 million for 2023 (48.74% of ) comprising interim and final components, plus an additional final of US$2.629 billion from paid in December 2024. This approach balances reinvestment in core mining with direct capital returns, avoiding dilution into unproven ventures. In its 2025 of Shareholders, the company approved a US$500 million dividend, equivalent to 36.23% of 2024 net profit attributable to parent owners. This equates to targeted per-share distributions, reinforcing viability through disciplined focused on proven assets rather than speculative diversification.

Environmental and Social Dimensions

Operational Impacts and Mitigation Efforts

PT AlamTri Resources Indonesia Tbk employs approximately 10,419 people as of 2024, contributing to local employment in mining-dependent regions of and supporting economic stability through direct and indirect jobs in operations, logistics, and services. The company's coal production, as 's second-largest by volume, bolsters national exports, with shipments aiding foreign exchange earnings and enabling affordable baseload power in developing economies where intermittent renewables cannot yet meet reliable demand. This role underscores 's causal importance for , providing consistent output essential for industrial growth and grid stability amid 's rapid electrification needs. Operational efficiencies include adoption of low-emission technologies, such as clean coal processes that reduce CO2 emissions by up to 35% compared to conventional methods, integrated into power generation segments. Mine site reclamation efforts involve progressive rehabilitation, with third-party monitoring every six months in post-mining areas to restore ecosystems through revegetation and . These measures align with and self-reported progress in land restoration, minimizing long-term habitat disruption. Mitigation initiatives encompass fuel switching to B35 since 2023, achieving a 34.98% reduction in GHG emissions relative to pure usage across operations. Solar photovoltaic installations generate up to 749,294 kWh annually, avoiding approximately 400 tons of CO2 equivalent emissions per year, with expansion plans to 8 MWp capacity. Specific projects, such as biomass co-firing and displacement in remote sites, have replaced 33,000 liters of yearly, preventing 98 tons of CO2 emissions. integration features a carbon reduction roadmap targeting net zero by 2060 or sooner, alongside assessments evaluating material risks, though scores reflect sector challenges in emissions management. These efforts, drawn from company disclosures, emphasize verifiable metrics over unsubstantiated claims.

Criticisms, Controversies, and Responses

Environmental criticisms of AlamTri Resources, formerly Adaro Energy, center on its operations in , where the company has been accused of causing significant and . A September 2024 report by the watchdog group Ekō documented that AlamTri cleared 8,131.47 hectares of land, including activities in protected forest areas and violations of environmental regulations, leading to irreparable in biodiversity hotspots on . These practices have also been linked to high from mining and associated smelters, exacerbating local flooding events, such as the 2021 South Kalimantan disaster that killed 21 people and displaced 63,000, with critics attributing worsened impacts to land clearing. Social controversies include community displacements and land conflicts dating back to the mid-2000s in mining areas like Tabalong Regency. Operations have triggered disputes since 2006, particularly in Bilas Village, where local and communities report loss of traditional livelihoods, forced relocations, and inadequate compensation, with some alleging intimidation tactics to clear land. Additional scrutiny involves tax practices and financing challenges. A 2019 Global Witness investigation revealed that despite receiving awards for tax compliance, AlamTri routed hundreds of millions in profits through subsidiaries in tax havens like the , potentially minimizing Indonesian tax liabilities via . In 2022, Bank ceased financing the company amid tightened coal lending policies and activist pressure, citing reputational risks from ongoing coal expansion. Post-2024 rebranding and the spin-off of its coal unit into Adaro Andalan Indonesia—retaining a 15% stake—has drawn greenwashing accusations, as the move is seen as superficial divestment without halting dependency or emissions reductions. AlamTri has responded by asserting full compliance with Indonesian regulations, including environmental permits, and emphasizing mitigation efforts like reclamation and programs. The company has denied illegal activities, claiming operations occur within concessions and support national emissions goals through diversification into minerals and renewables. Economic defenses highlight coal's role in Indonesia's development, with mining providing jobs and infrastructure in impoverished Kalimantan regions, contributing to local via and investments exceeding operational costs, countering narratives that overlook needs for 270 million reliant on affordable coal-powered . Independent analyses note that while environmental risks persist, regulated coal extraction in areas like Tapin has correlated with declining local rates through diversified economic activity.

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