Adaro appoints Tripatra as overland conveyor contractor
Tuesday, February 9 2010 - 02:17 AM WIB
?The construction of the project is expected to start soon and to be completed and commissioned in early 2012,? the company said in statement on Monday.
The OLC will be a conventional design, six-flight conveyor, with each flight ranging from 2.4 km to 9.9 km in length, and includes six transfer stations. The total length of the OLC is 37.8 km, it said.
The conveyor is expected to run at a speed of 7.2 meters per second, which translates into a total capacity of 6,000 tons of coal per hour.
The OLC will provide an alternative mode of transportation and is expected to reduce operating costs by US$2-3 per ton compared to the use of trucking. The distance of the OLC will be 37.8km, which covers approximately half the distance of the existing 75km hauling road.
The OLC system will include a crushing plant, stacking system and barge loaders, with an estimated total investment of around US$240 million.
The project will be financed entirely by the proceeds from Adaro?s US$800 million 10-year bonds issued in October 2009
The OLC will be powered by Adaro Energy?s own 2x30 megawatt (MW) mine-mouth power plant.
The company also appoints Sandvik Asia Limited as the contractor to supply equipment, it added without giving further details.
The project is part of Adaro?s plan to increase production capacity to 80 million tons per annum (MTPA) in 2014 from 45 MTPA currently.
AI is currently Indonesia?s second largest thermal coal producer, operates the largest single coal mine in Indonesia, and is a significant supplier to the global seaborne thermal coal market. (denny)