Adaro is spinning off the coal mining unit valued at $2.45 billion to focus on developing cleaner energy, with an aluminum smelter being built in Kalimantan.
The top consumer of copper globally is on track to produce about half the world’s refined metal this year after a frenzy of smelter construction to secure supplies crucial to the energy transition.
“Though commodities are often seen as an inflation hedge, in this instance – where inflation is neither driven by strong demand growth nor a negative commodity supply shock – they would struggle to live up to that reputation.”