Kideco Jaya Agung, established in 1982, undertakes surface coal mining at a 50,921 hectare concession in Paser Regency, East Kalimantan, Indonesia, where it holds coal mining rights under a first-generation Coal Contract of Work (CCoW) until 2023. Kideco, which currently operates five open pit mining sites with estimated coal reserves and resources of 651 million tons and 1,376 million tons respectively, produces a range of sub-bituminous coal containing low levels of sulfur, ash and nitrogen, making it environmentally friendly for use in coal-fired power plants. As one of the lowest cost coal producers in Indonesia, Kideco produced 37.3 million tons of coal in 2013 and has supplied coal to more than 50 customers in over 16 countries.

In 2012, Indika Energy acquired an indirect 85.0% equity interest in MUTU, a high-rank bituminous thermal and coking coal holding a third-generation CCoW based in Central Kalimantan, with a concession area of 24,970 hectares. Located approximately 30 km northeast of Ampah city and approximately 250 km north of Banjarmasin, MUTU has developed coal hauling roads with a capacity of 3.0 million tons per year and a barge port with a capacity of 5.0 million tons per year, while continuing to upgrade and expand its infrastructure to support future mining operations.

Established in 1998, Santan is a 50/50 joint-venture between Indika Energy’s 69.8% owned Petrosea and PT Harum Energy Tbk.  Santan’s operations involve surface open-cut coal mining at a 24,930 hectare concession area in Kutai Kartanegara Regency and Kutai Timur Regency in East Kalimantan. Santan holds coal mining rights until 2028 under a third-generation CCoW.  JORC exploration estimated coal resources to reach 222.2 million tons, with reserves of 30.6 million tons.  In response to the coal market downturn, Santan produced 1.8 million tons of coal in 2013, a decline of 32.1% from 2.6 million tons in 2012.

In 2012, Indika Energy acquired an indirect 60.0% stake in MEA, a greenfield coal asset located in East Kalimantan with a IUP concession area covering 5,000 hectares. More than 90% of the MEA concession has been explored and several promising coal seams identified. Effort to develop MEA has moved to the securing of all critical licenses required with the intention to commence production once the coal price is economical for production.

Established in 2013 and commenced to operate in 2014, Indika Energy Trading is sourcing, supplying and trading coal products to the domestic or seaborne market. Partnering with leading coal producers in Indonesia which ensures consistent quality and sustainable supply, Indika Energy Trading delivers wide range coal products from high to low calori­fic value for diverse industries.