Large Resources and Reserves of Metallurgical Coal and Close Proximity to Main Markets

PT Alamtri Minerals Indonesia Tbk ("AMI" or "the Company") through its subsidiaries owns five Coal Contracts of Work (CCoW) for concessions of a total area of 146,579 hectares in Central Kalimantan and East Kalimantan. Estimated at 982.9 million tonnes and 177.2 million tonnes, respectively, the CCoWs’ large resources and reserves provide AMI with a long lifetime of production. The prime locations of AMI’s subsidiaries’ mines provide for a strategic access to blue-chip customers across Asia, enabling the company to offer them an alternative to metallurgical coal product from Australia. AMI through its subsidiaries handles this privilege by ensuring supply reliability to its customers and pursuing a larger market share in the region alongside higher production volumes.

Metallurgical Coal of Premium Quality

PT Maruwai Coal’s (AMI’s subsidiary) hard coking coal Enviromet offers premium quality as its ultra-low ash and low phosphorus contents can produce lower waste, helping to produce stronger steel products. The combination of product quality and commitment to operational excellence has earned AMI a prominent reputation among blue-chip customers across Asia, primarily in Japan, China, South Korea, India, and Indonesia.

Operational Strength and Cost Competitiveness Leading to Supply Reliability and Minimized Operational Risks

AMI’s operational strength and cost competitiveness are attributable to the support of a reliable integrated supply chain from the AlamTri Group, a leading Indonesian mining and energy group with more than 30 years of industry experience. The group’s comprehensive expertise and long-standing experience in the industry enable AMI to minimize operational risks and maintain its position as a reliable metallurgical coal producer.

Strong and Solid Financial Performance

AMI managed to book solid financial performance amid the downturn of the metallurgical coal market in 2024. While the weakening metallurgical coal prices have pushed down its average selling price quite significantly in the year, AMI still managed to book positive revenue growth on the back of higher volumes in both sales and production, and surpass the targets. These achievements generated strong core earnings of US$445 million, or a 6% increase y-o-y, proving the company’s resilience amid the macro challenges as well as its operational efficiency.

Follow-Through on Executions

AMI continues to show solid progress on the execution of its strategic plans laid out to prepare for future growth. The company has been working to increase production volume and navigating through all obstacles to follow through on the executions despite all challenges, from internal to external, from operational to financial. As a result, a new employee dorm of 400-bed capacity in the port area and two fuel storage facilities of 4x2,500 KL and 2x1,500KL capacity, respectively, have been completed in 2024, while other infrastructure projects, including hauling road upgrading, the construction of a second barge loading conveyor (BLC), and another new employee camp in the mining area are underway.

The Right Position to Capture Opportunities in the Emerging Green Economy

AMI is developing a business that can both contribute to and benefit from the green business ecosystem being massively developed by Indonesian government. The government initiatives to strengthen the nation’s economy by adding values to raw commodities through down-streaming businesses and to promote more sustainable lifestyle offer abundant opportunities to companies engaging in mineral processing operations. AMI is building an aluminium smelter through its subsidiary PT Kalimantan Aluminium Industry, which is expected to start the CoD process at the end of 2025. At the first phase, the smelter is projected to have the capacity to produce up to 500,000 tonnes per year. Once operational, the smelter will support the government in the endeavours to reduce imports, create new job opportunities, and add values to domestic products.

This aluminium smelter is an anchor project expected to attract other business players to partake in developing sustainable business endeavours in the industrial estate in the world's largest green industrial area in North Kalimantan, as a contribution to green economic development.