Adaro update: Indonesia Bulk Terminal (IBT)

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

PT Indonesia Bulk Terminal (IBT)
- Seeks New Customers for Freed Export Capacity

IBT is the operator of the common user Pulau Laut Coal Terminal on the southern tip of the island of Pulau Laut which has a rated throughput of 12M tonnes per annum and is able to load vessels of up to 80,000 DWT.

The terminal maintains eight stockpiles with a total capacity of 800,000t of coal and a stockpile reclaiming system which can provide accurate blending of coals from different stockpiles to meet end-users precise specifications. The terminal is also an ideal location for cargo assembly of coal production from smaller producers and traders.

In past years the terminal has focused on handling Adaro Indonesia?s coal. However as

Adaro is a single product producer and because of its high output Adaro Indonesia does not benefit from or need the terminal?s blending and cargo assembly capabilities.

Since 2007, IBT has been focusing on a significant expansion of coal throughput from smaller producers and traders with operations in Southeast Kalimantan who can obtain real efficiency benefits from using the terminal?s features. While Adaro Indonesia and

Coaltrade are still the major terminal users, this tonnage as a percentage of the total is dropping and will continue to drop further in the coming years.

While IBT focuses on increasing throughput from third party users, Adaro has moved export tonnage back to the Taboneo anchorage where it can achieve greater efficiencies and cost reduction through reduced barging and transshipment costs. Even so, IBT will always remain a strategic ship loading port for Adaro Indonesia as it offers a high capacity backup to the Taboneo transshipment operations during periods of peak demand.

IBT shipped 7,034,800 tonnes of coal on 109 vessels in 9M08, or 25% of the plan and a

24% decrease compared to the 9,196,380 tonnes loaded on 141 vessels over the same period in 2007. Of the total 9M08 amount, 1,532,160 tonnes were third party shipments, while for 9M07, 1,011,870 tonnes were third party shipments.

IBT expects to export 8Mt of coal through the Pulau Laut terminal this year, down from the 9.6Mt exported in 2007, and hopes to increase the export tonnage in 2009. (end of excerpt)