Adaro Energy update: Business Development
Tuesday, February 1 2011 - 02:10 AM WIB
BUSINESS DEVELOPMENT
IndoMet Coal Project (?ICP?) with BHP Billiton
Further studies to identify development options across the seven Coal Contracts of Work (CCoWs) of the IndoMet Coal Project continued during 4Q10. The ICP, which is 25% owned by Adaro Energy, will inform the market of the results of the study phase at the appropriate time.
Power Sector
Adaro aims to move further downstream into power and take equity in power projects in Indonesia. Adaro evaluated three IPP (Independent Power Producer) projects located in Java and Kalimantan. Adaro agreed to take a stake in a consortium with international power companies in projects where bids will be made in the first half of 2011. By moving into power Adaro intends to make investments that will provide good returns, reliable cash flow and create a significant base demand for Envirocoal-Wara.
Coal Deposits Acquisition
Adaro continued to look for potential acquisitions of coal deposits in Indonesia using three selection criteria: size, location and quality of assets. (end of edited excerpt)