Adaro update: Coaltrade Services International Pte Ltd

The following is an excerpt from IDX-listed energy firm PT.Adaro Energy 's quarterly report released on Monday.

Coaltrade Services International Pte Ltd
Coaltrade is an international coal trading company that was established in Singapore in the year 2000 to participate in the growing trade in thermal coal in the international energy market. Its principal activities include:
- trading in thermal coal
- acting as an Agent/Representative for both producers and consumers
- providing technical and coal combustion consulting services
- providing shipping and logistics services for coal supply

Coaltrade was also formed to handle the blending of Adaro Indonesia?s coal with other coals for value added purposes. Envirocoal is the world?s lowest in sulphur and ash and amongst the lowest in terms of nitrogen content. It therefore has particular value as a blending coal with other coals of inferior qualities and consequently lower value. Prior to the establishment of Coaltrade this increased value by blending was being captured by the customer as Adaro Indonesia cannot under its CCA handle third party coal.

The company works closely with IBT, which is one of the few terminals in Indonesia with the capacity to blend and stockpile coal in multiple stockpiles. By using the terminal facilities Coaltrade purchases coal from a variety of producers from South and East

Kalimantan and blends them to arrive at a product meeting customer?s quality requirements.

Coaltrade trades coal purchased from third parties, provides coal blends and Envirocoal sourced directly from Adaro Indonesia.

China is a key market for Coaltrade. The Chinese coals are different from Indonesian coals and Coaltrade was the leader in opening up the very large southern China market for both blends and direct feed of Envirocoal. The China market is a target market, along with India and the domestic market, for Adaro Indonesia?s production growth.

Coaltrade sold 6,170,000 tonnes of coal in 9M08, of which 860,790 tonnes was third party coal. In 2007, Coaltrade sold 7,405,350 tonnes of coal. (end of excerpt)