Adaro Energy update: Project Development
Tuesday, April 30 2013 - 06:14 AM WIB
PROJECT DEVELOPMENT
Out of pit overburden crusher and conveyor (OPCC)
The amount of overburden removed from our open pit mine has grown to more than 300 Mbcm per year. Handling and disposing of such volumes of overburden has become more expensive and is a major challenge. The decision was made in 2010 to start mechanizing the overburden removal by installing a series of crushing and conveying systems that will transport overburden and spread it on outlying dumping areas that are not accessible for overburden trucks.
The OPCC plays a big role in our story of efficiency and productivity improvement, as well as ensuring that we can continue reliability of supply to our customers. The OPCC will help combat rising overburden hauling costs and reduce our dependency on diesel fuel. The project was 99% complete in 1Q13 and is on track to commence operations in May 2013. The system is expected to transport up to 34 Mbcm of overburden per annum at a savings of US$1 to US$1.20 per bcm. During 1Q13, we invested US$9.83 million, bringing total investment to US$215.45 million.
2x30MW mine-mouth power plant
Our subsidiary, PT Makmur Sejahtera Wisesa (MSW), is constructing a 2x30MW mine-mouth power plant located in Tanjung, South Kalimantan. At the end of 1Q13, the power plant was 96% complete. MSW completed synchronization for its first unit in March. Power supply stability from MSW was also tested during the time. Following the synchronization test, the first unit of MSW power plant was able to reach 100% load, and produced electricity output at full capacity of 30MW. We expect to start commissioning the second unit in early June 2013.
We invested US$6 million throughout the quarter, bringing total investment to US$162 million. When fully operational, the power plant will consume about 400,000 tonnes of E4000 coal per year. With a net power output guaranteed at 52.5MW, MSW is set to assist AI operations by providing affordable and reliable source of electricity. Excess power will be sold to PLN to help support the requirements of the grid system in South Kalimantan.
Capacity expansion at Kelanis Terminal
In 2011 we started expansion of the Kelanis river terminal, to increase capacity from 55 million tonnes to 70 million tonnes per year, a 27% increase. The project was 85% complete by the end of 1Q13 and we spent US$1.75 million during the period, which brought total spending to US$44.28 million. (end of excerpt)