Indonesia is the world’s largest exporter of thermal coal (2010) fulfilling strong demand from growing economies in Asia, including China, India and Indonesia. This global demand coupled with domestic demand of coal attracts interests from global players to invest in Indonesian coal mines. Indonesia's coal resources are mainly found in Kalimantan and southern Sumatra.  As large scale production in Kalimantan continues to rapidly deplete its coal resources, southern Sumatra will be the solution for alternative energy sources in the future.  

In general, the coal in South Sumatra is predominantly in the form of lignite, which has low calorific value and high total moisture, despite its low ash, sulphur and nitrogen contents. DH Energy is developing the Pendopo Coal Upgrading Project in Pendopo, South Sumatra to produce high CV coal products for export markets. The plant capacity applies a proven coal upgrading technology and the coal requirements will be supplied by Pendopo Energi Batubara.