Adaro Energy update: PT Saptaindra Sejati (SIS) ? Mining Contracting

The following is an edited excerpt from IDX-listed energy firm PT. Adaro Energy's quarterly report released on Wednesday. (ed)

COAL MINING CONTRACTOR: PT Saptaindra Sejati (SIS)

Our mining and contractor subsidiary, SIS, is one of the five mining contractors AI employs. AI is SIS?s largest customer, accounting for 62% of SIS?s total overburden removal and 72% of coal getting volume during 2Q13, compared to 60% and 64% during 2Q12, respectively. SIS has continued to prioritize AI over servicing new third party business. Lower overburden removal y-o-y and q-o-q was a result of SIS?s decision not to extend contracts with two customers, new pit development at AI, and requests from customers to reduce the stripping ratio. SIS will be the mining contractor that Adaro Energy uses for the newly acquired Balangan coal project in South Kalimantan. (end of edited excerpt)

PT Saptaindra Sejati
?	?	Actual?	Quarter on Quarter		Year on Year
?	Units	2Q13	1Q13	% Change	2Q12	% Change
Overburden Removal??	Mbcm	42.76	36.17	18%	53.48	-20%
Adaro	Mbcm	26.57	21.98	21%	32.07	-17%
Others	Mbcm	16.19	14.19	14%	21.42	-24%
Coal Getting	Mt	7.23	6.00	20%	6.51	11%
Adaro	Mt	5.18	4.04	28%	4.18	24%
Others	Mt	2.05	1.96	4%	2.33	-12%