Adaro Energy update: Project development
Monday, August 2 2010 - 07:57 AM WIB
PROJECT DEVELOPMENT
IBT-Shell Fuel Facilities Agreement
IBT-Shell Fuel Facilities Agreement is aimed at ensuring a guaranteed and lower cost fuel supply and increase in the liquid bulk-based traffic at the IBT terminal. All four storage tanks have been successfully filled from Shell tankers and on May 3rd 2010, the first Adaro fuel barge berthed and loaded fuel from IBT terminal for transport to Adaro?s river port at Kelanis on the Barito River.
Capacity Increase at the Kelanis River Terminal
The pilling work for the seventh crushing station at Kelanis has started and the completion of this will boost overall capacity and increase truck handling efficiency at Kelanis.
In addition to this, an audit of the overall power generation and transmission system for the Kelanis facility is being conducted to improve safety, security and control of electricity supply, and reduce breakdowns to a minimum.
Design work for the new South Kelanis crushing, handling and barge loading facility is also in progress and will be tendered out in the next quarter. It is planned that this project will be completed by the end of 2011.
Conveying System and Mine-mouth Power Plant
Adaro has been exploring initiatives to increase the efficiency and reduce costs of coal and overburden hauling by implementation of conveyor projects for moving overburden to dumping areas and for overland coal transportation to be powered by electricity generated by a mine mouth power station.
Adaro?s wholly-owned subsidiary, PT Makmur Sejahtera Wisesa (MSW), is constructing a 2x30 megawatt (MW) mine-mouth power plant to provide power. Construction work at the site is well advanced with orders for major equipment for the station having been placed.
MineConsult, an Australian engineering consulting company, commenced work on a detailed 5-year plan to incorporate two overburden crushing and conveying systems which will move the overburden from the surface of the mine to the overburden dumps. The initial study indicates two locations from which to carry overburden from the central and southern areas of the mine to selected dump areas.
Our planning process continues to focus on improving our existing operations. Over the past several years our focus has been on monitoring our cost of operations and, with a view to achieving this we have continued to focus on our supply chain. We continue to devote our efforts in this area while executing the ongoing projects.
BUSINESS DEVELOPMENT
IndoMet Coal Project with BHP Billiton
In May 2010, the Indonesian Government approved the formation of the new joint venture between Adaro Energy and BHP Billiton for the development of the newly named IndoMet Coal Project. Adaro, through its subsidiary PT Alam Tri Abadi, has acquired a 25% interest in the joint venture, with BHP Billiton holding the remaining 75%. The work to identify development options across the seven Coal Contracts of Work (CCoWs) is in progress.
Effective June 11th 2010, Garibaldi Thohir was appointed a Commissioner and Chia Ah Hoo and M. Syah Indra Aman were appointed Directors to the existing Boards of each of the 7 concession companies that comprise the IndoMet Coal Project.
Appointment of New COO for Adaro Indonesia ? Jamie Frankcombe
On June 30th, 2010 Adaro announced the appointment of Jamie Frankcombe as Chief Operating Officer for Adaro Indonesia. Frankcombe has more than 30 years of experience in coal mining operations and business development in Australia, Colombia, Canada, USA and Indonesia. He will report to Chia Ah Hoo, the Operations Director of the parent company, Adaro Energy.
Increasing Capacity at Adaro?s Coal Supply Chain
Adaro continued to purchase new heavy equipment for the mine and build a new crushing station and loadout facility at Kelanis. New barge sets and floating cranes were also purchased to support initiatives to expand capacity to 80 million tonnes in the medium term. This capital expenditure plan is in line with Adaro?s strategy of improving the efficiency of the coal supply chain. (end of edited excerpt)