Adaro Energy update: Business Development
Wednesday, February 1 2012 - 02:37 AM WIB
BUSINESS DEVELOPMENT
IndoMet Coal
IndoMet Coal (IMC) holds metallurgical and energy coal deposits in seven coal contracts of work (CCoWs) located in Kalimantan. A phased approach to development is planned, commencing in early 2012, with construction of a road and associated infrastructure in support of future mine development.
BHP Billiton owns 75 per cent of IMC. ATA, a wholly owned subsidiary of Adaro Energy, owns 25 per cent of IMC.
Coal Logistics Operations in South Sumatra: PT Servo Meda Sejahtera (SMS)
On October 10th 2011, we acquired a 35% interest in an integrated coal logistics provider in South Sumatra, PT Servo Meda Sejahtera (SMS), for Rp 200 billion. AE carried out this transaction to support and develop its coal logistics operations in South Sumatra. SMS is completing a dedicated haul road, which will provide coal hauling services and a dedicated coal port on the Musi River in South Sumatra. During 4Q11, work continued to progress on the hauling road and bridge construction. Commercial operation is expected to commence in the first half of 2012.
Coal in South Sumatra: PT Mustika Indah Permai (MIP)
On August 19th 2011, we acquired a 75% stake in PT Mustika Indah Permai (MIP) for US$222.5 million for a greenfield coal project in South Sumatra. MIP holds an IUP permit, which was granted in April 2010 for a period of twenty years and covers an area of approximately 2,000 hectares. During 4Q11, we continued additional drilling and coal analysis required to meet the requirement for a JORC compliant statement of Resources and Reserves, which we plan to release in February 2012. We selected our mining contractor, PT Saptaindra Sejati (SIS), to be responsible in the initial development of MIP. SIS?s personnel and some heavy equipment had already arrived to the site to start initial work such as mine planning, building the site office and building access and haul roads.
Independent Power Producer Project
On October 6th 2011, PT Bhimasena Power Indonesia (BPI), a company established by JPower-Adaro-Itochu consortium, signed a Power Purchase Agreement (PPA) with PL PLN (Persero) for the 2,000 MW Central Java Power Plant (CJPP) project with total project cost of approximately US$4 billion. BPI expects to complete the financial closure in 2012. (end of excerpt)