Jakarta. PT Petrindo Jaya Kreasi Tbk (Petrindo), through its subsidiaries, PT Multi Tambangjaya Utama (MUTU) and PT Daya Bumindo Karunia (DBK), have started production of metallurgical coal, also known as coking coal.

This will diversify Petrindo's product offerings, which previously only produced thermal coal or steam coal. MUTU's metallurgical coal production began in  August this year, with the first shipment to buyers in September. Meanwhile, DBK will start the first cut process this year, with commercial production projected for 2025.

“In line with our business development strategy, Petrindo through MUTU has started the production of metallurgical coal in its current operational area. This product portfolio diversification will also enhance Petrindo's competitive advantage in the coal processing industry,” said Daniel Laurente, Director of Petrindo.

Metallurgical coal is a raw material used in the coke-making process. Coke itself is one of the main materials used in the iron and steel smelting industry. Metallurgical coal has a high carbon content with specific characteristics required for producing coke. Coke is produced by heating metallurgical coal in ovens under reductive, airless conditions at very high temperatures. The coke produced from coal heating is porous, hard, and consists almost entirely of concentrated carbon.

“In Indonesia, there are still few producers of metallurgical coal, which will enhance Petrindo's position in this sector and provide added value to our customers,” said Daniel Laurente.

Petrindo completed the acquisition of MUTU in early 2024. This share ownership acquisition in MUTU is a fundamental component of Petrindo’s long-term strategy, aimed at improving operational performance to be more efficient and effective by integrating operations and strengthening Petrindo's business portfolio in high-calorie thermal coal and metallurgical coal.