Adaro's OPCC to start commercial operation this May

By Andi Istrada

IDX-listed coal mining giant Adaro Energy recently stated it will start the commercial operation of its Out-of-pit Overburden Crushing and Conveying (OPCC) project, under the management of subsidiary PT Jasapower Indonesia (JPI), designed and constructed by FL.Smidth through an international tender process, this May.

Construction was started in early 2011, while the commercial operation should make immediate impact on the cost of coal-mining operations. Adaro claimed that the system is one of the first mechanized systems of its type in operation worldwide, which has been specially designed to suit its operating parameters.

"It will transport up to 34 million bank cubic meters of overburden each year - allowing the elimination of about 100 dump trucks of overburden removal operation - at a projected saving of US$1.00-US$1.20 per bank cubic meter," the company said in a statement on Thursday.

The system will consist of two crushing stations processing 7,000 tons per hour and a 7.7-kilometer fixed conveyor system that can carry up to 12,000 tons per hour, plus a 2.4-kilometer transportable conveyor that features a mobile, computer-controlled stacking and spreading system.

Power for the system will be supplied from the 2x30MW coal-fired mine mouth power station recently completed near Tanjung bay by subsidiary Makmur Sejahtera Wisesa, which is due to be fully operational by mid-2013.

"The estimated cost of the project was US$212 million, and we invested US$109.6 million during 2012, bringing our total investment by the end of 2012 to US$205.6 million. Total manpower and equipment used to construct this system comprised of 919 personnel and 24 units of heavy equipment," the company said.

Editing by Er Audy Zandri