Adaro Energy update: Project Development
Thursday, August 1 2013 - 03:11 AM WIB
PROJECT DEVELOPMENT
OPCC starts trial operations
The amount of overburden removed from our open pit mine has grown to more than 300 Mbcm per year. Handling and disposing of such volumes of overburden has become more expensive and is a major challenge. The decision was made in 2010 to start mechanizing the overburden removal by installing a series of crushing and conveying systems that will transport overburden and spread it on outlying dumping areas that are not accessible for overburden trucks.
The OPCC plays a big role in our efficiency and productivity improvement, as well as ensuring that we can continue reliability of coal supply to our customers. The OPCC will help transport overburden greater distances, combat rising overburden hauling costs and reduce our dependency on diesel fuel. The project commenced trial operations and has moved 128,812 bcm of overburden in 2Q13. The system is expected to be fully commissioned in 3Q13 and transport up to 34 Mbcm of overburden per annum. During 2Q13, we invested US$4.31 million, bringing total investment to US$219.76 million.
2x30 MW mine-mouth power plant expected to be fully operational in 3Q13
Our subsidiary, PT Makmur Sejahtera Wisesa (MSW), is finishing construction of its 2x30 MW mine-mouth power plant located in Tanjung, South Kalimantan. By the end of 2Q13, MSW had commissioned the first 30 MW unit, which was running well and supplying power to PLN and Adaro Indonesia. The completion of commissioning for the second unit is planned for the third quarter of this year. We invested US$7 million during the second quarter, bringing total investment to US$169 million.
Capacity expansion at the Kelanis River Terminal
Expansion of the Kelanis River Terminal continued, with the target to increase capacity 27%, from 55 million tonnes to 70 million tonnes per year. In the second quarter, we completed a significant milestone in our upgrade with commissioning of our seventh crushing line. This line has been operating at capacity and will provide approximately 11 Mt per year of additional crushing capacity. We will upgrade Kelanis in stages to be prudent with cash and have completed the necessary upgrades for 2013 in order to reach our production target. We spent US$1.28 million during 2Q13, which brought total spending to US$45.56 million. (end of excerpt)