Adaro Energy update: Project Development
Friday, April 27 2012 - 12:57 AM WIB
PROJECT DEVELOPMENT
Our projects aim to improve the efficiency and cost control of our existing operations, and are our investment for the future. These following projects will help us in maintaining our position as amongst the lowest cost coal mining operations in Indonesia, and help us to operate in a safe and reliable manner so as to ensure dependable coal supplies for our customers.
Overburden Out of Pit Crushing and Conveying System (OPCC)
As our Tutupan mine becomes wider and deeper, one of the major challenges faced in managing the mine has become handling the enormous volume of overburden being stripped and hauled from the mine. Hauling distances have progressively become further, thus it has become more expensive to carry out overburden hauling. The OPCC system will be installed at the Tutupan mine to help offset the projected increase in haulage costs using trucks and will consist of two 7,000 tonnes per hour (tph) crushing stations and a 12,000 tph 7.7 kilometer conveyor system, including a 2.4 kilometer transportable conveyor and mobile stacking and spreading conveyor.
The OPCC system, which will cost in excess of US$212 million, was well advanced with site civil works and steel fabrication for structures underway, and manufacturing of major equipment in progress. At the end of 1Q12, the project was 49% complete and during the quarter we spent US$18.55 million, which brought the total spending to the end of the quarter to US$114.65 million. We expect this system to commence operations in early 2013. Once the system is fully operational, it will be able to transport up to 34 million bank cubic meters (mbcm) of overburden each year, at a savings of US$1 ? US$1.20 per bcm. The OPCC system will replace up to 100 overburden dump trucks from our hauling fleets.
2X30 MW Mine-mouth Power Plant
The US$160 million, 2x30 MW mine-mouth power plant will be operated by our wholly owned subsidiary PT Makmur Sejahtera Wisesa (MSW). This power plant will help reduce our dependency on oil by powering the OPCC as well as supporting Adaro Indonesia?s mining operations by providing reliable electrical power. The power plant uses Circulating Fluidized Bed (CFB) boilers to allow the plant to burn coal with a wide range of calorific values and moisture. Once this plant is commissioned in late 2012, it will be fuelled by approximately 300,000 tonnes of E4000 (Wara) coal each year. At the end of 1Q12, the plant was 89% complete and during the quarter MSW spent US$12.7 million, which brought the total spending to US$131.75 million.
Capacity Expansion at Kelanis River Terminal
Capacity expansion of the Kelanis crushing, stockpiling and barge loading facilities will increase the annual terminal throughput capacity from approximately 55 million tonnes to more than 70 million tonnes. At the end of 1Q12, accumulated spending for this project was US$24.63 million. The US$55 million plan includes installation of an additional three-stage crushing facility to six of the existing seven systems, which once completed, will increase in-loading capacity to 10,500 tonnes per hour (tph). We will also upgrade each of our barge-loading systems to increase capacity to 14,000 tph. In addition, a major overhaul and upgrade of the Kelanis terminal?s power plant and electrical systems is also underway, which will increase the total installed power to 25 MW. Other infrastructure developments as part of the terminal upgrade include installation of an operations and control building, replacement of coal sampling equipment to enhance quality control, and replacement and additions to the coal reclaim bulldozer fleet. (end of excerpt)