Adaro Energy update: Business Development
Friday, February 1 2013 - 07:50 AM WIB
PT Mustika Indah Permai (MIP)
During 4Q12, we continued with pre-stripping activities at the MIP minesite and stockpile and water control facilities were built. As at the end of 2012, more than one million bank cubic meter of material had been removed exposing up to 125,000 tonnes of coal. Land purchasing progressed and coal crushing started to build stockpile bases. We continued to build orders to sell Ultima, which is the brand name of MIP?s low pollutant, low heat value coal, to end users in Indonesia, China, India, Taiwan, Thailand, the Philippines and Vietnam. MIP is 75% owned by Adaro Energy through PT Alam Tri Abadi (ATA).
PT Bukit Enim Energi (BEE)
During 4Q12, development alternatives were studied with the aim to produce a work program and budget for approval by all the shareholders. Exploration to date has included surface geological and aerial topographic mapping and 13,100 meters of exploration drilling and sampling. An additional exploration drilling program will be carried out in the BEE mining area during 2013 to provide supplementary data for the preparation of a JORC report on the concession area?s reserves and resources. Base line environment and social programs have started. From the exploration results to date, the BEE acquisition is considered to be compatible with Adaro Energy?s other investments in electricity generation and is being promoted as the long-term, high volume fuel supply for a dedicated mine-mouth base-load power plant. BEE is 61.04% owned by Adaro Energy through ATA, 20% owned by PT Pamapersada Nusantara, 13.92% owned by PT Triputra Utama Selaras and 5.04% owned by PT Bumi Alam Sejahtera.
PT Servo Meda Sejahtera (SMS)
During 4Q12, SMS completed all the earthworks and surfacing of the road. Some of the permanent bridges are still under construction which will be completed in 2013. On November 20, 2012, the haul road was officially commissioned by the South Sumatra Governor. Phase 1 of the Muara Lematang stockpiling and barge loading facility was also completed and a total of ten barges and 70,000 tonnes were loaded prior to the end of the year. The facility will be expanded to a capacity of 30 million tonnes per year over the next few years with future upgrades planned and timed in accordance with market demand. SMS is 35% owned by Adaro Energy through ATA.
Our investments in MIP, BEE and SMS are part of our strategy in South Sumatra to replicate the proven success of Adaro Indonesia?s business model in South Kalimantan to create long-term, sustainable value from Indonesian coal. (end of excerpt)