Adaro Energy update: Project Development
Tuesday, February 1 2011 - 02:07 AM WIB
PROJECT DEVELOPMENT
Improving Efficiency of Coal Supply
Chain: Overburden Crushing and Conveying
In order to economically and reliably boost production at Tutupan, Adaro plans to install a crushing and conveying system to move overburden, called an Out of Pit Crusher and Conveyor (OPCC). During 4Q10, Adaro continued to work on the preliminary design of the system, which is expected to have a capacity of 66 Mbcm in two units. The commercial and contractual agreement was close to completion, following which Adaro will announce the EPC contractor. The OPCC is expected to cost US$275 ? 300 million and should be operational by the first quarter of 2013.
2X30 MW Mine-mouth Power Plant
Adaro?s 2X30 megawatt (MW) mine-mouth power plant is owned and will be operated by Adaro?s subsidiary, MSW, to power the OPCC and other parts of the mining operations. The construction work at the site progressed well and was on track to commence by 2012. During 4Q10, MSW spent US$5.5 million which brought total spending on this project to US$59 million. The plant will be fueled by approximately 300,000 tonnes of Envirocoal-Wara per year and is expected to result in costs savings, less dependency on oil and greater reliability.
Kelanis Terminal Expansion
The new South Kelanis loadout is planned to handle the future production increase as Adaro Energy ramps up to 80 Mt. A new set of barge loaders with a capacity of 30 Mt per annum will be built in 2011, with completion scheduled for the second quarter of 2012. During 4Q10, Adaro Energy completed land acquisitions and neared completion of the design. (end of edited excerpt)