Bumi Resources (BUMI) Accelerates Diversification, Targeting 50% Non-Coal Revenue by 2031
Mon 01 Dec 2025, 06:43 AM
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PT Bumi Resources Tbk (BUMI) continues to pursue a business-diversification agenda to reduce its reliance on revenue from thermal coal.
Bumi Resources Director Christopher Fong said the company has in fact been pursuing business diversification over the past few years. This is reflected in BUMI’s 2024 consolidated revenue composition, in which non-thermal coal segments contributed 5%, while the remaining 95% still came from thermal coal.
With expansion moves such as the acquisition of the Wolfram Limited (WFL) copper and gold mine in Australia and a series of other initiatives, BUMI expects the non-thermal coal contribution to rise to 10% in the near term, or in 2025.
“By 2031, we aim to reach a 50:50 composition between coal and non-coal revenues,” he said in a public expose on Monday (1/12/2025).
As is known, in early November 2025 BUMI officially owned 100% of WFL after purchasing an additional 400,670 shares (0.32%) for IDR 2.21 billion, or about AUD 200,335. Previously, on 8 October 2025, BUMI had acquired 99.68% of the company.
In addition, BUMI plans to issue Sustainable Bonds I BUMI Phase III Year 2025 with a principal amount of IDR 780 billion. Proceeds of IDR 340.88 billion will be used to fund the acquisition of Jubilee Metals Limited, an Australian gold-mining company.
A further IDR 333.60 billion from the bond proceeds will be used as a down payment for the planned acquisition of PT Laman Mining, a bauxite mining company in Indonesia.
Bumi Resources Director Rio Supin added that the acquisition process for Jubilee Metals Limited has been underway since early 2025. BUMI will acquire up to 65% of the Queensland-based mining company. After that, BUMI has no plans to further increase its stake in Jubilee Metals Limited.
“Because our focus is to get the mine operating according to plan,” he said at the same event.
As for Laman Mining, BUMI will acquire up to 45% of the company, in line with the initial agreement.
Similarly, BUMI is currently focused on completing the initial acquisition steps and has not held further talks with Laman Mining’s owners about increasing the affiliate of the Bakrie Group’s stake.
Korea Investment & Sekuritas Indonesia (KISI) Head of Research Muhammad Wafi said the aggressive expansion through acquisitions of several mineral-mining companies could clearly drive BUMI’s long-term transformation.
This is because potential revenue from the non-coal segment will grow if each acquired mine reaches optimal operating levels.
However, BUMI will still face challenges such as high capital-expenditure needs, leverage risks, and lengthy cash-flow adjustments. “The target of a 50% revenue contribution from the non-coal segment is achievable, but execution and funding need to be monitored,” he noted on Monday (1/12).
In general, BUMI’s near-term performance will remain challenging amid uncertainty in the coal industry. BUMI’s coal sales volume could potentially grow in 2026 as long as weather conditions remain favorable and export activities run normally.
Wafi also recommends a trading buy on BUMI shares with a target price of IDR 260 per share. At the close on Monday (1/12), BUMI’s share price inched up 0.82% to IDR 246 per share.
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