Adaro Energy update: Adaro Indonesia ? Coal Mining
Monday, August 2 2010 - 02:39 AM WIB
PT Adaro Indonesia ? Mining (100%)
- Adaro?s main coal mining subsidiary
- Coal type : Envirocoal, sub-bituminous, medium calorific value, ultra-low pollutants
- Resources: 3,484 Mt (JORC Compliant)
- Location: Tabalong and Balangan districts, South Kalimantan
| Reserves (Mt) | |||
| Proven | Probable | Total | |
| Deposit: | |||
| Tutupan | 418 | 167 | 585 |
| Wara | 212 | 92 | 304 |
| Total | 630 | 259 | 889 |
1H10:
Production Volume : 21.6 Mt (20% increase compared to 1H09)
Coal Sales : 21.75 Mt (22% increase compared to 1H09)
Overburden Removal : 106.7 Mbcm (12% increase compared to 1H09)
Planned Strip Ratio : 5.5x (1H09: 5.0x)
Mining Equipment capacity : 50 Mt per annum
Mining and Hauling
PT Pamapersada Nusantara (?PAMA?) was responsible for 38% of Adaro Indonesia?s coal production volumes. PT Bukit Makmur Mandiri Utama (?BUMA?) and PT Rahman Abdijaya (?RAJ?) were responsible for 18% and 12% respectively. Adaro Energy?s subsidiary PT Saptaindra Sejati (?SIS?) was responsible for 30% of the total coal production. PT Rante Mutiara Insani (?RMI?) was responsible for the development of Envirocoal-Wara?s production and contributed 2% of Adaro Indonesia?s coal production volume.
Overburden Removal
The overburden removal continued to be challenging, mainly related to the adverse weather condition in the Q2 and first half of 2010. It is expected the weather will normalize in the second half of 2010 and the overburden activities will ramp up accordingly.
Coal Mining
All contractors continued their impressive performance despite the challenging condition and were able to achieve 97% of the plan with SIS being the top performer reaching 120% of its targeted production levels. The production from Envirocoal-Wara has continued to grow strongly and was largely unaffected by the higher than expected rainfall due to the low overburden stripping ratio. The mine is now producing at an average daily rate of 6,000 tonnes per day, or approximately 2 million tonnes per year on an annualized basis.
Logistics, Hauling, Barging and Ship Loading
Adaro continues to improve the operational efficiency and has shortened the barge cycling time. The improvement is mainly related to Adaro?s effort to debottle-neck the Barito channel and better scheduling. This shorter cycle time translates to an increase in barging capacity. The average demurrage rate per vessel has been kept to acceptable levels.
| Units | 1H09 | 1H10 | % Change | |
| Floating Cranes | Mt | 9.17 | 12.56 | 37% |
| Self Geared | Mt | 3.02 | 2.78 | -8% |
| IBT | Mt | 1.27 | 1.38 | 9% |
| Barges | Mt | 4.27 | 4.87 | 14% |
| Total | Mt | 17.74 | 21.59 | 22% |
First Envirocoal-Wara Shipment to China
Adaro?s marketing of its new product, Envirocoal-Wara continued and additional customers agreed to take test cargoes as first steps towards long term contracts. Adaro is using a three pronged approach for developing markets for Envirocoal-Wara; 1.) direct sales to power stations, 2.) enhancement through coal upgrading technology, and 3.) fuel source for mine-mouth power plants and independent power plants.
Initial commercial production of Envirocoal-Wara started in the first quarter of 2010 and in May Adaro delivered its first shipment to China. Envirocoal-Wara coal has a lower heat value than the existing Envirocoal product from the Tutupan mine, however it has the same unique environmental characteristics and a low stripping ratio. (end of edited excerpt)