Adaro Energy update: Project Development
Tuesday, November 1 2011 - 02:12 AM WIB
PROJECT DEVELOPMENT
Overburden Crushing and Conveying System
The overburden crushing and conveying system is being installed to offset the projected increase in haulage costs associated with transportation of overburden via trucks in the Tutupan Pit by transporting a portion of the overburden to be mined to a dump location via conveyor belt. The system will provide the benefits of reducing the cost of transporting the overburden material to the dump location along with a reduction in the future dependency on the use of diesel. AI selected FLSmidth (RAHCO) and PT Wijaya Karya (Persero) Tbk (WIKA) for a system that has a capacity to crush and transport 12,000 tonnes per hour of overburden material equivalent to approximately 34 Mbcm annually. The project is expected to cost in excess of US$212 million with a resultant reduction in operating costs by US$1.00-US$1.20 per bank cubic metre compared to the existing use of trucking. The project cost also includes the change of equipment orders from the original contract and some layout changes. AI?s total spending to date is US$78 million with physical progress of the project of 28%. The project is expected to commence commercial operation in the first quarter of 2013.
In 3Q11, the project team of civil engineers and mechanical engineers mobilized to the site. The excavation and piling for the engineering operations continued and made good progress along the 10.2 kilometre conveyor alignment. The construction of the WIKA laydown area and offices, and the installation of the batch plant was completed. The drainage works are still being completed. FLSmidth completed 65% of the engineering works for the system and plans for the first delivery of material to the site before year end.
2X30 MW Mine-mouth Power Plant
The 2X30 MW mine-mouth power plant will reduce our dependency on oil by powering the overburden crushing and conveying system and other parts of the mining operations. The plant is owned and will be operated by our subsidiary, PT Makmur Sejahtera Wisesa (MSW), with a total estimated cost of US$160 million. MSW selected PT. Punj Lloyd Indonesia and Punj Lloyd Pte Ltd Singapore as the Engineering, Procurement and Construction (EPC) contractors, and Siemens Industrial Turbomachinery S.R.O, Czech Republic as the vendor for the steam turbine generators. During 3Q11, MSW spend US$17.7 million mainly for EPC equipment supplies and construction services which brought total spending to date on this project to US$111.8 million. The physical progress of the plant is at 77% and it is expected that the plant will be commissioned in the first quarter of 2012 with full operation by mid to late 2012. The plant will be fuelled by approximately 300,000 tonnes of E 4000 (Wara) coal per year.
Expanding Capacity at Kelanis River Terminal
Our coal crushing, stockpiling and barge loading facilities are located at the Kelanis river terminal with a throughput capacity of approximately 55 million tonnes per year. The work to upgrade the existing Kelanis facilities to around 70 million tonnes per year by the end of 2012 is underway and progressing well. Total estimated cost for this project is US$55 million, with total spending to date of US$14.3 million. The upgrading plan includes upgrading and replacing of existing hoppers, upgrading existing as well as adding new conveyor belts, and adding two new barge loading conveyors. (end of excerpt)