Adaro Energy update: Project Development
Wednesday, February 1 2012 - 02:42 AM WIB
PROJECT DEVELOPMENT
Overburden Crushing and Conveying System
The overburden crushing and conveying system is aimed to improve operational efficiency by reducing future dependency on the use of diesel as well as improve safety standards in handling the overburden. The system will be installed at the Tutupan pit to help offset the projected increase in haulage costs via trucks. PT Jasapower Indonesia (JPI) selected FLSmidth (RAHCO) and PT Wijaya Karya (Persero) Tbk (WIKA) to build a system with a capacity to crush and transport approximately 34 Mbcm of overburden annually and has an expected project cost in excess of US$212 million.
In 4Q11, the engineering works on conveyor frame placement, crusher stations and culverts continued to make progress. FLSmidth continued the design of the mechanical equipment and engineering works with 85% completed. The first shipment of imported high wall materials is scheduled to arrive in late January 2012 via the Kelanis river terminal. We expect the project to commence commercial operations in 2013.
2X30 MW Mine-mouth Power Plant
This mine-mouth power plant will power the overburden crushing and conveying system as part of our goal to reduce dependency on oil. Our wholly owned subsidiary, PT Makmur Sejahtera Wisesa (MSW), will operate the project. The power plant uses Circulating Fluidized Bed (CFB) boilers to allow the plant to burn coal with wide range of calorific value and moisture. During 4Q11, MSW spent US$7.2 million, which brought total spending to US$119 million. The contractor had manufactured 95% of the equipment and delivered 85% to the site. It is expected that the plant will be commissioned in late 2012 and will be fuelled by approximately 300,000 tonnes of E 4000 (Wara) coal per year.
Expanding Capacity at Kelanis River Terminal
The upgrade of the existing Kelanis facilities from 55 million tonnes to more than 70 million tonnes made good progress. During 4Q11, AI spent US$6.3 million, which brought total spending to US$20.6 million. The US$55 million plan includes upgrading and replacing existing hoppers, upgrading existing and adding new conveyor belts, and adding two new barge loading conveyors. (end of excerpt)