Adaro Energy update: Project Development
Friday, February 1 2013 - 07:56 AM WIB
Overburden Out of Pit Crushing and Conveying System (OPCC)
The OPCC system will help offset the projected increase in overburden haulage costs using trucks at the Tutupan mine and will reduce our dependency on oil. We estimate this system will be commissioned in May 2013 to transport up to 34 Mbcm of overburden each year, or the equivalent from 100 overburden dump trucks, at a savings of US$1.00-1.20 per bcm. The system will consist of two 7,000 tonnes per hour (tph) crushing stations and 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. The project was 96% complete at the end of December 2012. We invested US$17.4 million during 4Q12, mostly to pay the contractors, which brought total investment to US$205.6 million. Total manpower used to construct this system consists of 919 personnel and 24 units of heavy equipment.
2x30MW Mine-mouth Power Plant
The power plant will be operated by our wholly owned subsidiary PT Makmur Sejahtera Wisesa (MSW). The plant will help reduce our dependency on oil as it will use Circulating Fluidized Bed (CFB) technology suited to burn approximately 300,000 tonnes of our E4000 (Wara) coal each year. The plant is expected to operate at 80% availability factor to power the OPCC and support Adaro Indonesia?s mining operations by providing reliable, inexpensive electrical power. The plant was 95% completed at the end of December 2012. During 4Q12, we completed the steam blow preparation successfully while the commissioning for the first unit was still underway. Commercial operation of the first unit is scheduled for January 2013. Completion of the second unit by April 2013 is on track with project completion and handover expected in May. We invested US$8.3 million during 4Q12, which was mostly to pay for construction work, bringing the total investment to date to US$156 million. The net power output of the plant is guaranteed at 52.5MW. Any excess power, expected to be 1.5 MW, will be sold to the national utility PLN to help supply to nearby communities in Kalimantan.
Capacity Expansion at Kelanis River Terminal
The US$55 million capacity expansion project at the Kelanis River Terminal will increase annual terminal throughput capacity from approximately 55 million tonnes to more than 70 million tonnes by early 2013. We are using two local contractors for this project. The scope of the project includes installation of an additional three-stage crushing facility, which will increase in-loading capacity to 10,500 tonnes per hour (tph), upgrade our barge-loading system to increase capacity to 14,000 tph and upgrade the Kelanis? electrical power capacity to 25MW. In addition to the capacity expansion project, we are also installing an operations and control building, replacing the coal sampling equipment to enhance quality control and adding a coal reclaim bulldozer fleet. The project was 69.3% complete at the end of December 2012. During 4Q12, the contractors continued mechanical, civil and structural work for all the seven hoppers followed by the installation of the electrical works. We invested US$2.8 million during 4Q12, which brought total investment to US$42.57 million. (end of excerpt)