Indonesian coal miner and trader Golden Energy and Resources listed on the mainboard of the Singapore Exchange (SGX) earlier this month. Its placement price was S$0.67 cents and on the first day of trading, December 12, it opened at 71 cents and closed at 65.5 cents.
Backed by the Sinar Mas Group, one of Indonesia’s largest conglomerates, Golden Energy is the largest coal-mining company listed in Singapore and has a market capitalisation of $1.6 billion.
Its primary business is exploring and mining thermal coal in concession areas that cover about 42,904 hectares in the Indonesian provinces of South Kalimantan, Central Kalimantan, Jambi and South Sumatra.
The company owns the rights to mine more than two billion tonnes of thermal coal resources, with reserves of more than 750 million tonnes as at October 31.
In September Golden Energy said that it would acquire a coal exploration and processing business in Indonesia for US$37.2 million.
The group is also involved in the forestry business and owns concession rights to 265,095 hectares in South Kalimantan.
Golden Energy and Resources’ executive director and deputy group chief executive Dwi Suseno said the group was encouraged by the positive outlook of the coal market. Indonesian President Joko Widodo’s 35GW program is expected to provide additional power capacity, driving domestic demand further.
“We have continued to ramp up our production to ride on the strong demand for coal,” he said, also noting that the group recently received approval to raise annual production from its BIB concession area to 7.5 million tonnes and, subject to demand and government approval, to further increase output to 12 million tonnes in 2017.
The listing of Golden Energy and Resources brings the total number of SGX-listed companies in the mineral, oil and gas sector to 26, with a combined market capitalisation of $3.6 billion.