(Bloomberg) -- Indonesian mining firm PT Delta Dunia is looking for acquisition targets that would help it reduce its reliance on revenue from lower-quality coal that emits more carbon.

The company aims to increase the contribution of lower-emission coal to 28% of revenue by the end of this year and to 50% by 2028, from 19% last year. It recently spent $122.4 million to buy Atlantic Carbon Group, one of the largest US producers of anthracite, a high quality grade of coal.

“As long as it’s sensible and in line with our strategic pillars, M&A is something we will look at seriously,” said Director Iwan Fuadi Salim in an interview. It currently has $322 million in cash. Anthracite, which emits a quarter of the carbon emissions compared to lower-quality coal, is part of that move, Salim added.

Indonesia’s coal mining industry is undergoing a significant shift as companies diversify. PT Adaro Energy Indonesia is building an aluminum smelter in Kalimantan, PT Harum Energy is looking to buy more nickel mines, while PT Indika Energy and PT United Tractors bought stakes in non-coal mining assets last year.

Delta Dunia is also considering another bond buyback if the market is favorable, especially as the company faces a peak in debt maturities amounting to $355 million in 2026, Salim said.

Indonesian coal producers could become more entrenched dollar-denominated borrowers over the next few years as they seek funding to diversify away from thermal coal, according to Bloomberg Intelligence’s Credit Analyst Mary Ellen Olson.

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