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 Monday. (ed)

PT Saptaindra Sejati (SIS)
During the quarter, SIS was able to increase its production performance by 22% year on year to 9.04 Mt. However, overburden removal volume declined by 3% year on year to 41.01 Mbcm, in line with coal miners? strategy to keep their cost in check by lowering strip ratio this year.

SIS continued to focus on serving the Adaro Energy Group. Overburden removal and production volume from Adaro were 61% and 73% of SIS?s total volume in the quarter, respectively. This is compared to 63% and 70% in the same period last year.

?	Units	2Q16	1Q16	2Q16 vs. 1Q16	2Q15	2Q16 vs. 2Q15	1H16	1H15	1H16 vs. 1H15
Overburden Removal	Mbcm	41.01	32.11	28%	42.41	-3%	73.12	78.03	-6%
Coal Production	Mt	9.04	7.11	27%	7.42	22%	16.15	14.66	10%

In 2Q16, SIS bought heavy equipment, infrastructure equipment, operational vehicles and other equipment from one of our contractors Rahman Abdijaya. As Adaro continues to believe in the growth of demand for coal, especially in Indonesia, this will give SIS the required capacity and ability to take the market share as it rises.