JAKARTA (RambuEnergy.com) – Sojitz Corporation of Japan has entered an agreement to sell its entire 30% stake in PT Bara Alam Utama (BAU), a coal mining company that owns and operates the BAU thermal coal mine located in South Sumatra, Republic of Indonesia, to an existing partner.
“This strategic share sale furthers Sojitz’s shift away from thermal coal investments as the company continues to rebalance its coal assets in light of rising global concern for the environment and long-term business sustainability,” the company said in a statement.
Following the sale, Sojitz will continue to serve as BAU’s exclusive sales agent in Japan and continue to provide a stable supply of coal to the Japanese market, the company said.
The company did not disclose, however, the value of the stakes sales.
The decision was the latest move by the Japanese companies globally to stay away from engaging and financing the coal business or coal-based power plants.
In early February this year, a Japanese major diversified group ITOCHU announces its new coal policy, in which the company will not develop a new coal-fired power plant nor acquire other thermal coal plants, as a move to gradually move away from fossil fuel energy.
The announcement by a Japanese company came as a surprise given that the Japanese financial companies have been actively developing or finance the development of coal-fired power plants in Asia, including Indonesia.
The move also follows the move by some western countries which have announced a long-term plan to exit from coal business, which is considered to have played a part in damaging the environment and climate. (*)
Edited by Roffie Kurniawan (email: firstname.lastname@example.org)