PT Adaro Energy Indonesia plans to spin off a coal mining unit valued at USD 2.45 billion as part of its shift away from the fossil fuel.

The company, which is one of country’s biggest coal miners, aims to offload its 99.9% stake in Adaro Andalan Indonesia and will seek shareholder approval for the plan on Oct. 18, according to a local exchange filing late on Wednesday. Shares in Adaro rose as much as 15.1% on Thursday, the most in more than two years.

Indonesian coal miners have been boosting their investment in areas like metals and green energy to benefit from the energy transition. Adaro is building an aluminum smelter in Kalimantan, although the fossil fuel still accounts for more than 90% of its revenue. Other firms like PT Harum Energy and PT United Tractors have bought into the country’s rapidly expanding nickel sector.

The Southeast Asian nation remains the world’s top exporter of thermal coal, used in power stations, and continues to rely on it for most of its domestic energy needs. An international plan to finance its shift away from the fossil fuel has stalled since being launched in 2022.

Adaro said in the filing that separating its core coal business from its expanding minerals and green energy segments will allow it to access more sources of finance. The sale will be conducted as part of a public offering in which shareholders in the parent company may participate. The company has committed to boosting its non-coal revenue to more than half by the end of the decade, and plans to keep output of the fossil fuel flat this year.