Adaro Energy update: Business Development
Friday, July 29 2011 - 03:13 AM WIB
BUSINESS DEVELOPMENT
The Establishment of Adaro Power
In line with Adaro Energy?s strategy of moving downstream into power generation, Adaro Power was established on December 17th 2010. Adaro Power is a wholly owned subsidiary of Adaro Energy.
Two by 1,000 Megawatt Coal-fired IPP Project
On June 17th 2011, the JPower-Adaro-Itochu consortium received a Letter of Intent to construct a coal-fired Independent Power Producer project with a total capacity of 2,000 megawatts in Pemalang, Central Java. This project shall use ultra-supercritical boilers designed to burn a variety of sub-bituminous coals. PT Adaro Indonesia (AI) will be the primary supplier of coal for the IPP.
The Power Purchase Agreement is currently being finalized, and construction will likely begin in August 2012 with commercial operation by 2016-17. Adaro Power has a 34% stake, while JPower and Itochu have 34% and 32% respectively in the project.
Bio Diesel Fuel Pilot Project
On May 31st 2011, AI, Komatsu and United Tractors launched the Bio Diesel Fuel (BDF) pilot project at AI?s mining concession area as part of our strategy to reduce dependency on fossil fuel. Among the honoured guests during the launching event was the Minister of Energy and Mineral Resources, Dr. Darwin Zahedy Saleh, the Ambassador of Japan for Indonesia, Yoshinori Katori, the Governor of South Kalimantan province and the Director General of Mineral and Coal. The project aims to build BDF supply-chain facilities and use oil from the inedible seeds of the Jatropha plant and other plants. The BDF will fuel Adaro?s dump trucks resulting in less environmental impact. The three partner companies continued to assess the viability of this project.
IndoMet Coal (IMC) project with BHP Billiton
Further studies to identify development options across the seven Coal Contracts of Work (CCoWs) of the IndoMet Coal project continued during 2Q11. The IndoMet Coal project, which is 25% owned by Adaro Energy?s subsidiary, ATA, will inform the market of the results of the study phase at the appropriate time.
Acquisition of Coal Deposits
We use three selection criteria of size, location and quality of deposits when selecting investment targets of coal deposits, and are currently considering three to four targets in Indonesia. We will consider all relevant opportunities based only on the merits of the transaction for Adaro Energy. (end of excerpt)