Adaro Energy update: Project Development
Wednesday, August 1 2012 - 02:08 AM WIB
Overburden Out of Pit Crushing and Conveying System (OPCC)
The US$212 million OPCC system will help offset the projected increase in overburden haulage costs using trucks at the Tutupan mine and reduce our dependency on oil. We estimate this system will be commissioned in early 2013 to transport up to 34 million bank cubic meters (Mbcm) of overburden each year, or equivalent to 100 overburden dump trucks, at a savings of US$1-1.20 per bcm. The system will consist of two 7,000 tonnes per hour (tph) crushing stationsand a 12,000 tph 7.7 kilometer conveyor system, which includes a 2.4 kilometer transportable conveyor along with a mobile stacking and spreading conveyor. It was 68% complete at the end of June 2012 as the work on the conveyor frame placement and construction for the crusher station continued to make progress. In addition, the majority of mechanical equipment and engineering works, designed by FLSmidth, have arrived at the site via the Kelanis River Terminal. We invested US$35.7 million during 2Q12 mostly for design, material and construction, which brought total investment to US$150.3 million. We remain on track to start commissioning in early 2013.
2x30 MW Mine-mouth Power Plant
The US$160 million plant will be operated by our wholly owned subsidiary PT Makmur Sejahtera Wisesa (MSW) to help reduce our dependency on oil as it will be fuelled by approximately 300,000 tonnes of E4000 (Wara) coal each year. The plant is projected to be commissioned in late 2012 to power the OPCC and support Adaro Indonesia?s mining operations by providing reliable inexpensive electrical power. The plant was 92.8% complete at the end of June 2012 and on final stages of installation and testing before establishing a connection to the PLN electricity system. We invested US$8.6 million during 2Q12, which was mostly an installment payment to the contractors, PT Punj Lloyd Indonesia and PT Punj Lloyd Pte Ltd Singapore, as well as to build power transmission lines, bringing the total investment to US$140.4 million.
Capacity Expansion at Kelanis River Terminal
The US$55 million capacity expansion project at Kelanis River Terminal is to increase annual terminal throughput capacity from approximately 55 million tonnes to more than 70 million tonnes by the end of 2012. We used two local contractors for this project. The scope of the project includes installation of an additional three-stage crushing facility, which will increase inloading capacity to 10,500 tonnes per hour (tph), upgrade our barge-loading system to increase capacity to 14,000 tph and upgrade the Kelanis terminal?s electrical power capacity to 25 MW. In addition to the capacity expansion project, we will also install an operations and control building, replace coal sampling equipment to enhance quality control and add a coal reclaim bulldozer fleet. The project was 57% complete at the end of June 2012. During 2Q12, the contractors continued to do mechanical, civil and structural steel works for all the seven hoppers as well as the power station. They installed transformer 2MVA and completed the construction of control room building and power house building. We invested US$7.9 million during 2Q12, which brought total investment to US$32.5 million.
Investing in Larger Sized Heavy Equipment to Support Our Long-term Growth
We began investing larger sized equipment last year to maximize productivity, improve efficiency and minimize accident risk. In 2011, we invested US$276 million to purchase several 200 tonne class and 150 tonne class of Caterpillar, Komatsu and Hitachi dump trucks, as well asseveral 350 to 400 tonne class Komatsu and Hitachi face shovels. We had a total of 1,131 units of heavy equipment for both overburden removal and coal extraction at the end of 2011, which was a 24% increase y-o-y. During 2Q12, we invested US$35 million to purchase 200 tonne class and 150 tonne class of Hitachi and Komatsu as well as a hydraulic excavator and grader, which brought total investment to US$80 million for 2012. (end of excerpt)