Adaro starts commercial shipment of new product called ?Envirocoal-Wara?

Indonesia-listed coal mining firm PT Adaro Energy through its wholly-owned subsidiary South Kalimantan coal miner PT Adaro Indonesia launched a new product called ?Envirocoal-Wara? produced at the Wara mining block.

Commercial production of the Envirocoal-Wara started in the first quarter of this year, with the first overseas shipment to China made in May.

Andre Mamuaya, director of Adaro Energy, told Petromindo.Com the production rate of Envirocoal-Wara currently stands at 6,000 tons per day or about 2 million tons per year.

Currently, the block is mined by local contractor PT Rante Mutiara Insani.

The company has secured the market for the existing Envirocoal-Wara output under a long-term 10-15 years contract with China (export volume of 1.5 million tons) and India (500,000 tons), Andre said.

He did not give the customers? name.

He added that in the long term, Adaro will increase the production of the Envirocoal-Wara to 20-25 million tons per year starting 2014, when Adaro?s ultimate target total output is expected to reach 80 million tons in 2014.

Andre said Adaro will continue to look for long-term contracts as the company is not interested in spot contract.

The Envirocoal-Wara product has a lower heat value compared to the previous Envirocoal products, with a unique environmental characteristics and lower stripping ratio.

For instance, the lower stripping ratio has allowed for the production of Envirocoal-Wara to keep rising sharply in the second quarter of this year despite the heavier than expected rainy season.

Coal from the Wara mining site has a moisture content of about 40 percent, higher than Adaro?s old Envirocoal products. But the Wara products have low ash content of less than 3 percent.

Wara block has total reserves 304 juta tons, with proven reserve at 212 juta ton and 96 million tons probable. (denny)