Adaro update: Mining Contracting ? Saptaindra Sejati (SIS)

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

Mining Contracting ? PT Saptaindra Sejati (SIS)
SIS, which started its commercial operation in April 2002, provides a broad range of coal mining services including exploration, drilling, transportation and logistical support, overburden removal and coal mining services. Currently handling around 21% of Adaro Indonesia?s production SIS plans to gradually increase output to 50% of future production.

Overburden removal of 64,260,000 bcm was 10% below the plan for 9M08 but a 50% increase compared to 9M07. Closer to planned levels, during 9M08, SIS transported 6,120,780 tonnes, mined 8,413,580 tonnes and barge loaded 1,123,050 tonnes. Both coal transported and coal mined decreased 7% compared to 9M07 due to a higher strip ratio of 5.5 compared to 3.1. Barge loading grew by 23% compared to 9M07.

During 3Q08, SIS borrowed US$300 million at LIBOR + 265bps. US$240 million was used for refinancing and US$60 million, which has yet to be drawn down, will be used for capital expenditures, mostly on mining equipment. (end of excerpt)