Coal Age. Indonesia. Keeping ahead. Selangkah lebih maju. Focus on PT Bukit Asam. German mining technology

Coal Age

®

Edition 7 October 2014 A Mining Media publication www.mining-media.com

Indonesia Keeping ahead

Selangkah lebih maju

Focus on PT Bukit Asam Fokus pada PT Bukit Asam

German mining technology Teknologi pertambangan Jerman

Sumatra Miner preview Penampilan awal Sumatra Miner

Indonesia FEATURES Mining success story PT Bukit Asam (Persero) Tbk has entered into a Memorandum of Understanding (MoU) with Australian company Ignite Energy Resources for the joint development of integrated projects that utilize Ignite’s proprietary Catalytic Hydrothermal Reactor (Cat-HTR) coal-upgrading technology., which chemically transforms lignite, or brown coal, into two high-energy products. ...3

Coal Age

®

Edition 7 October 2014 A Mining Media publication www.mining-media.com

German mining technology The 2014 edition of Best of Germany highlights the expertise of German companies that supply equipment and services to the exploration, mining and mineral processing industries around the world, including in Indonesia, and which sees Germany leading the world with its technology ........................................................................................................................23

Indonesia Keeping ahead Terus Kedepan

Sumatra Miner 2014 With Sumatra striving to benefit from the potential of its vast resources but hindered by the global mining downturn, volatile prices, lack of capital investment, poor infrastructure, a trend away from low ranking coal and new technologies to upgrade this coal, the timing of the 2014 Sumatra Miner conference and exhibition is ideal. .............................................61

Focus on PT Bukit Asam Fokus pada PT Bukit Asam

German mining technology Teknologi pertambangan Jerman

Sumatra Miner preview Penampilan awal Sumatra Miner

INDONESIA Development of the Bumi Barito Mineral Coal Project (BBM) in Central Kalimantan continues on schedule with Cokal Ltd securing additional loan funds of US$5.65 million..................... 9 Orpheus Energy has executed sales agreements subject to shareholder approval, for the sale of its interests in four Indonesian coal prospects – Papua, B34, Citra Bara Prima (CBP) and Alam Duta Kalimantan (ADK). .....................................................................................10 PT Bayan Resources’ subsidiary PT Indonesia Pratama has signed mining services and rental agreements with PT Petrosea covering the Tabang project in East Kalimantan. .......11 South East Asia Resources has secured US$1 million funding for continued production at the PT PAR Coking Coal Project in East Kalimantan.................................................................12

Indonesia’s coal industry is striving to survive difficult times for the industry at a global level owing to oversupply, volatile prices and growing environmental concerns. Indonesia’s producers are also combatting increasing government taxes and regulations aimed at limiting exports and reducing illegal operations. Such is the strength of Indonesia’s reserves and the resilience of producers such as Pt Bukit Asam and Pt Adaro Energy that the industry is largely keeping ahead as this edition of Coal Age Indonesia portrays. Photo courtesy PT Adaro Energy

Excavators have provided access to fresh coal deposits at Jatenergy’s Jongkang project, allowing the company to provide immediate product to barge.......................................................13

DEPARTMENTS

REST OF THE WORLD Poland Balamara Resources is progressing its Polish coal development strategy.............................21 Canada Atrum Coal is focused on commencement of trial mining at its Groundhog project. ...............21 South Africa Universal Coal has been granted a Mining Right over the Brakfontein Coal Project ..............22

Balangan production under way - 8

First Waratah coal sales - 16

Advertisers’ index ...........................................IBC Calendar of events .........................................IBC From the Editor ...................................................1 Indonesian briefs ..............................................19 Product news ................................................... 58 Supplier news ....................................................57

Volvo king of the jungle - 59

C C 1 9 8 7

Coal Age Indonesia Trade rules will only ‘kill the chickens’

From the editor

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www.coalage.com Coal Age Indonesia® Suite 9, 880 Canterbury Road, Box Hill, Melbourne, Victoria, 3128 Australia Phone: +61 3 9899 2981 Mobile: + 61 417 517 863 Editor - John Miller, [email protected] Editorial director - Steve Fiscor, [email protected] Europe - Simon Walker, [email protected] North America - Russ Carter, [email protected] Latin America - Oscar Martinez, [email protected] South Africa - Antonio Ruffini, [email protected]

SALES Publisher - Lanita Idrus, [email protected] North America - Victor Matteucci, [email protected] Latin America - Mauricio Godoy, [email protected] Germany, Austria, Switzerland - Gerd Strasmann, [email protected] Rest of Europe - Colm Barry, [email protected] - Jeff Draycott, [email protected] Japan - Masao Ishiguro, [email protected] Indonesia -Dimas Abdillah, [email protected]

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Coal Age Indonesia® is published two times per year by Mining Media International. Every endeavour is made to ensure that the contents are correct at time of publication. The Publisher and Editors do not endorse the opinions expressed in the magazine. Editorial advice is non-specific and readers are advised to seek professional advice for specific issues. Images and written material submitted for publication are sent at the owners risk and while every care is taken, Coal Age Indonesia® does not accept liability for loss or damage. Coal Age Indonesia® reserves the right to modify editorial and advertisement content. The contents may not be reproduced in whole or in part without the written permission of the publisher. Copyright 2014 Mining Media International Pty Ltd

ISSN: 1832-7966

WHILE new trade rules introduced on October 1 may lead to higher prices for Indonesian coal owing to reduced production and export limitations, the country’s main industry body believes the downsides far outweigh any positives. The Indonesian Coal Mining Association says the rules will drive firms into the ground and rule out any chance of higher shipments next year from the world’s leading exporter of thermal coal. The regulations are intended to retain more coal for domestic power generation and stop illegal shipments by forcing miners to pay royalties John Miller, editor up front and register themselves before being eligible to export. In urging the administration of president-elect Joko Widodo, who is due to take office on October 21, to roll back the trade rules and to review coal policy, the association’s chairman Bob Kamandanu says, “I’m trying to convince the government that this will kill everyone. A lot of companies will die because of cashflow problems. Usually the (export) number always increases significantly, but this will stop that.” The change comes as Indonesia pushes to limit output to safeguard future energy needs but only adds pressure on a sector that faces at least another year of depressed prices because of global oversupply. “They are trying to kill the rats but they are killing the chicken that laid the golden egg,” Bob Kamandanu says. The changes come at a time that India’s Supreme Court has cancelled around 200 coal mining permits, which will lead to more import demand. There are projections that import demand could increase by as much as 33% to 200 million tonnes for the next few years. Rather than benefiting Indonesia’s miners, this will play into the hands of Australian producers who are in the market for additional buyers after China said it would restrict its own coal imports as part of a crackdown on pollutants. The new rules have also been imposed at a time when global influences could see an improvement in prices. UBS forecasts that with China planning production cuts, India seeking more imports and Indonesia requiring exports to have an export licence, thermal coal prices should rise from around US$67 per tonne to US$71 later this year and up to US$77 in 2015. It also forecasts that metallurgical coal prices will increase from around US112 per tonne to US$120 later this year and US$131 in 2015.

Peraturan Perdagangan hanya akan memusnahkan sumber pendapatan WALAUPUN peraturan-peraturan perdangan baru yang dimulai pada 1 Oktober akan meningkatkan harga-harga batubara Indonesia disebabkan pengurangan produksi dan pembatasan ekspor, badan industry berpendapat bahwa kerugian-kerugiannya akan jauh melebihi hal-hal positifnya. Persatuan Pertambangan Batubara Indonesia mengatakan bahwa peraturan-peraturan baru ini akan mempailitkan banyak perusahaan dan tidak memungkinkan peningkatan ekspor tahun depan dari eksportir batubara termal utama di dunia. Peraturan-peraturan tersebut dimaksudkan untuk merangkum lebih banyak batubara bagi pembangkitan tenaga listrik dalam negeri dan untuk menghentikan ekspor liar dengan mengharuskan registrasi sebelum mengekspor dan membayar komisi dimuka oleh para eksportir. Dalam mendesak administrasi bakal presiden Joko Widodo, yang akan dilantik pada 21 Oktober untuk menarik kembali peraturan-peraturan perdagangan teresebut dan meninjau kembali kebijaksanaan batubara ini, Ketua Persatuan Bob Kamandanu mengatakan, “Saya mencoba meyakinkan pemerintah bahwa ini akan memusnahkan semua. Banyak perusahaan akan pailit disebabkan masalah-masalah cashflow. Biasanya jumlah ekspor selalu meningkat banyak, tapi hal ini akan menghentikan peningkatan tersebut“ Perubahan ini terjadi karena Indonesia sedang membatasi produksi bagi melindungi keperluan-keperluan tenaga dimasa depan, tetapi telah menambahkan kesukaran pada sektor yang masih menghadapi harga produk yang rendah, paling sedikit untuk setahun lagi disebabkan kelebihan suplai. “Mereka mencoba membunuh tikus-tikus tapi justru mereka juga membunuh ternak-ternak yang menghasilkan telur emas,” kata Bob Kamandanu. Perubahan-perubahan ini diambil sewaktu Mahkamah Agung India baru saja membatalkan 200 izin pertambangan batu bara, yang akan meningkatkan jumlah impornya. Diperkirakan bahwa jumlah impor ini dapat meningkat sebanyak 33% sampai 200 juta ton untuk lima tahun kedepan. Sebenarnya ini seharusnya menguntungkan penambang-penambang Indonesia, tapi malah akan menguntungkan Australia yang memang sedang mencari-cari pasaran baru setelah China memutuskan untuk membatasi impor batubaranya sebagai salah satu langkah dalam menghilangkan polusi di negara terssebut. Peraturan-peraturan baru ini dilaksanakan pada waktu pengaruh-pengaruh global akan membaikkan harga-harga. Dengan ramalan UBS bahwa China sedang merencanakn pemotongan produksi, India memerlukan lebih banyak impor dan Indonesia mengharuskan izin untuk mengekspor, harga-harga seharusnya naik dari US$67 per ton ke US$71 pada akhir tahun ini dan naik ke US$77 dalam tahun 2015. Prakiraan itu juga memperkirakan harga batubara metalurgis akan naik dari US$112 per ton ke US$120 pada akhir tahun ini dank e US$131 dalam tahun 2015. October 2014 l Coal Age Indonesia l 1

Mining success story

Bukit Asam seeks upgrade technology PT BUKIT Asam (Persero) Tbk has entered into a Memorandum of Understanding (MoU) with Australian company Ignite Energy Resources for the joint development of integrated projects that utilize Ignite’s proprietary Catalytic Hydrothermal Reactor (Cat-HTR) coal-upgrading technology. The Cat-HTR technology chemically transforms lignite, also known as brown coal, into two highenergy products – metallurgical-grade coal and synthetic crude oil. Metallurgical-grade coal can be used in the manufacture of steel as a pulverized coal injection (PCI) type coal and lower-emissions coal power generation while synthetic crude oil can be processed in existing oil refineries to produce an array of fuels, including gasoline, kerosene, and diesel. Ignite also owns an exploration licence in southeast Victoria, Australia, across which a 16.6 billion tonne JORC-compliant lignite resource has been independently estimated. Bukit Asam’s low-rank coal from Sumatra has been sent to Ignite’s Large Pilot Plant facility in New South Wales and has been successfully upgraded to produce synthetic crude oil and metallurgical-grade coal with a calorific value of more than 7000kcal/kg. The MoU was signed on April 30 by Bukit Asam president director Milawarma and Ignite’s chief executive Len Humphreys. It could result in Bukit Asam purchasing up to 30% of Ignite. Bukit Asam is undertaking due diligence on the project of low-calorie coal processing technology to be made into crude oil and pulverized coal injection (PCI). Milawarma expects the due diligence to be completed by the end of November. “After that, we’ll go in to the deal as a sharehold-

Ignite Energy Resources’ pilot plant which is upgrading lignite. Pabrik percobaannya The Ignite Energy Resources yang sedang digunakan untuk meningkatkan lignit. er or partner. Indeed for a while we will not be the majority owner, but the ultimate goal is for us to own it.” He said the company was reviewing whether to participate in the development of the technology or in the processing of Ignite’s Victorian coal resource, or both at once. Bukit Asam is also undertaking due diligence for two coal concessions in Sumatra and Kalimantan.

Cat-HTR process Ignite Energy Resources has developed a proprietary lignite and biomass beneficiation technology, the Catalytic Hydrothermal Reactor Process. This technology enables the rapid chemical transformation of:

Bukit Asam mencari teknologi peningkatan batubara PT BUKIT Asam (Persero) Tbk telah membuat MOU dengan perusahaan Australia Ignite Energy Resources untuk perkembangan bersama proyekproyek terintegrasi yang menggunakan teknologi peningkatan batubara Reaktor Catalytic Hydrothermal (Cat-HTR) punyanya Ignite. Teknologi Cat-HTR mengubah bentuk lignite atau juga dipanggil batubara coklat secara kimia menjadi dua produk bertenaga tinggi, yaitu batubara metalurgi dan minyak mentah sintetis. Batubara metalurgi sebagai tipe batubara untuk proses injeksi batubara tepung dapat digunakan untuk memproduksi besi baja dan juga sebagai batubara emisi rendah untuk pembangkit tenaga listrik. Sedangkan minyak mentah sintetis dapat diproses di pabrik-pabrik minyak yang ada untuk menjadi berbagai produk termasuk gasoline/bensin, minyak tanah dan solar. Ignite juga mempunyai lisensi eksplorasi di tenggara Negara bagian Victoria, Australia, dimana 16,6 milyar ton sumber lignit yang diakui JORC telah diperkirakan oleh pakar bebas. Batubara kadar rendah Bukit Asam dari Sumatra telah dikirim ke pabrik besar percobaan 2 l Coal Age Indonesia l October 2014

Ignite di New South Wales dan telah dapat ditingkatkan untuk memprodusir minyak mentah sintetis dan batubara kadar matalurgis dengan nilai kalorifik melebihi 7000kcal/kg. MoU ditandatangani pada tanggal 30 April oleh dirut Bukit Asam Milawarma dan CEO Ignite Len Humphreys. Hal ini memungkinkan Bukit Asam membeli sampai 30% Ignite. Bukit Asam sedang melaksanakan due diligence mengenai proyek teknologi proses transformasi batubara berkalori rendah menjadi minyak mentah dan batubara tepung injeksi (PCI). Milawarma mengharapkandue diligence selesai pada akhir Nopember. “Setelah itu, kita akan masuk sebagai pemegang saham atau partner. Tentu saja untuk beberapa waktu kami bukanlah pemegang saham mayoritas, tapi maksud kami akhirnya sebagai empunyanya.” Ia mengatakan perusahaan sedang memperhatikan kembali apakah akan ikut serta dalam pengembangan teknologinya atau dalam memproses sumber batubara Ignite di Victoria, atau dua-dua sekaligus. Bukit Asam juga sedang melaksanakan due diligence terhadap dua konsesi

batubara di Sumatra dan Kalimantan.

Proses Cat-HTR Ignite Energy Resources telah mengembangkan teknologi pendayagunaan lignit dan biomas punyanya sendiri, yaitu Proses Reaktor Hidropanas katalistis. Teknologi ini memungkinkan transformasi kimia yang cepat untuk: • Biomas purba (lignit atau batubara cokelat) menjadi minyak kasar sintetis padat tenaga tinggi (atau Syncrude) dan produk batubara metalurgis (atau Met Coal); dan • Biomas modern (sampah/buangan dari pabrik) menjadi minyak mentah bio, sama dengan minyak mentah bensin, dan kimia-bio bernilai tinggi yang dapat gunakan sebagai pengganti hasil dari minyak mentah. Biomas dan lignit kedua-duanya mengandung kadar zat asam yang tinggi dalam struktur polimernya. Zat asam ini adalah berat mati yang mengurangkan kepadatan tenaganya. Tujuan utama dari teknologi Cat-HTR adalah untuk menurunkan kadar zat asam didalam materi, sehingga meningkatkan isi tenaganya.

Mining success story • Ancient biomass (lignite or brown coal) into a high energy-density synthetic crude oil (or Syncrude) and a metallurgical-grade coal product (Met Coal); and • Modern biomass (plant material) into BioCrude oil, a renewable equivalent of petroleum crude oil, and high-value bio-chemicals that can be used as substitutes for analogues derived from crude oil. Both biomass and lignite have high levels of oxygen in their respective polymeric structure. This oxygen represents dead weight that reduces the energy density. The basic goal of the Cat-HTR technology is to reduce the oxygen content of the feedstock, there-

by increasing its energy content. In contrast to the more traditional approaches to the liquefaction of biomass and lignite, namely pyrolysis or gasification, Ignite uses compressed steam, in the presence of a catalyst, to selectively remove chemically-bound oxygen in the feedstock’s polymeric structure. Therefore, it is able to turn the main disadvantage of lignite and biomass – high water content – into an advantage. Over five years the technology has been brought from lab-scale into a fully-operational Large Pilot Plant (LPP) at Ignite’s Somersby Engineering Facility on the Central Coast of New South Wales, Australia. The pilot plant has annual processing capacity of 7500 tonnes.

Bukit Asam’s coal loading facilities in South Sumatra. Sarana pembongkar-muatan batubara Bukit Asam di Sumatera Selatan

Berbeda dari pendekatan-pendekatan tradisionil dengan mencairkan biomas dan lignit, yaitu pyrolysis atau gasifikasi, Ignite menggunakan uap tekanan tinggi dan katalis, untuk menghilangkan zat asam terikat secara kemikal pada struktur polimer bahan-bahan masukkan. Dengan demikian, dapat membuat kerugian utama lignit dan biomas – kadar air yang tinggi – menjadi keberuntungan. Dalam lima tahun teknologi ini telah beranjak dari tahap laboratorium menjadi Pabrik Percobaan Besar (LPP) yang beroperasi penuh di sarana teknik Somersby di Central Coast, New South Wales, Australia. Pabrik percobaan ini mempunyai kapasitas sebesar 7500 ton. Langkah berikutnya adalah menyelesaikan studi kemungkinan mendirikan pabrik komersil dan membangun reaktor Cat-HTR dalam skala komersil. Pemodelan ekonominya oleh Departemen Teknik Universtiy of Sydney, berdasarkan hasil ujian percobaan di LPP, menunjukkan bahwa secara komersil, teknologi Cat-HTR dapat meningkatkan lignit menjadi Sycrude dan Met Coal, dengan biaya yang dapat bersaing dengan produsir minyak mentah konvensional yang ada dan pengekspor batubara metalurgis. Ignite mempunyai 16.4 milyar ton cadangan lignit yang memenuhi peraturan JORC diketiga

tempatnya – Gormanale, Gelliondale dan Stradbroke – di Gippsland, Victoria dekat Lembah Latrobe, salah satu kawasan produksi lignit yang utama dunia. Cadangan Gelliondale sejumlah 6,2 milyar ton terdiri dari lignit di lapisan tipis dan padat (kedalaman kurang dari 200 meter dan 100 meter kotoran atasnya) dengan kadar sampah yang rendah ( 6,2% asap dan 0,9% sulfur). Cadanan ini juga berada ditempat ideal untuk ekspor dari Victoria tenggara, kurang dari 20 km dari pelabuhan yang ada di Barry Point, tidak seperti cadangan lignit lain di Victoria. Seandainya dibuktikan pada skala komersil, proses Cat-HTR ini mempunyai potensi untuk meningkatkan nilai Ignite dan cadangan lignit Victoria secara besar-besaran. Sebagai dorongan yang signifikan terhadap rencananya, Ignite telah mendapat pemberian pemerintah sebesar $20 juta untuk mendesain, mendirikan dan mengoperasikan pabrik peningkatan lignit di Lembah Latrobe. Sumbangan ini adalah sebagian dari Program Demonstrasi Lignit Maju yang memungkinkan Ignite meneruskan proyek $84 juta demonstrasi teknologi Cat-HTR tersebut. Proyek ini menyangkut konstruksi sebuah modul reactor berskala komersil dalam sebuah pabrik pra-

The next step is the completion of a comprehensive feasibility study for a commercial plant and the construction of a commercial-scale Cat-HTR reactor. Economic modelling by the University of Sydney Engineering Department, based on the results of test runs at the LPP, indicates that at a commercial scale the Cat-HTR technology can upgrade lignite into Syncrude and Met Coal, at costs that are competitive with existing conventional crude oil producers and metallurgical coal exporters. Ignite has a 16.4 billion tonne JORC-compliant lignite resource across three deposits Gormandale, Gelliondale and Stradbroke - in Gippsland, Victoria, near the Latrobe Valley, one of the world’s premier lignite-producing regions. The 6.2 billion tonne Gelliondale deposit consists of thick, shallow seams (less than 200 metres depth and 100 metres overburden) of lignite with low impurities (6.2% ash and 0.9% sulphur). The deposit is also ideally positioned for export from southeast Victoria, unlike any other Victorian lignite deposit, located less than 20km from an existing port at Barry Point. If proven at a commercial scale, therefore, the Cat-HTR process has the potential to significantly uplift the value of Ignite’s and Victoria’s vast lignite resources. In a significant boost to its plans, Ignite has secured a $20 million government grant for the design, construction and operation of a ligniteupgrading plant in the Latrobe Valley. The funding, part of the Advanced Lignite Demonstration Program, will allow Ignite to proceed with an $84 million project to demonstrate its Cat-HTR technology. The project will involve

komersil akhir-ke-akhir. Program Demonstrasi Lignit Maju ini didanai bersama oleh Pemerintah-pemerintah Commonwealth dan Victoria. Ia menunjang perkembangan pra-komersil, berskala demonstrasi, proses peningkatan lignit mentah. Proyek ini berhaluan sama dengan MoU dengan Bukit Asam yang berencana menggunakan teknologi Cat-HTR bagi proyek-proyek pengembangan tergabung cadaangan-cadangan tambang di Indonesia dan Australia. Ignite telah berhasil mengkonversi sampel-sampel batubara kadar rendah Bukit Asam yang berjumlah 7,3 milyar ton menjadi Syncrude dan batubara yang ditingkatkan di sarana percobaannya. Len Humphreys dari Ignite berkata bahwa CatHTR memungkinkan sebuah penyelesaian atas bertambahnya ketergantungan kedua-dua negara pada importasi minyak mentah dan bensin, hal yang nampaknya sejalan dengan permintaan Pemerintah Indonesia agar menambah nilai lokal.

Anggaran Belanja Modal Milawarma mengatakan bahwa apabila investasi Ignite terjadi, ini akan didanai dari uang tunai intern Bukit Asam, walaupun rencana ini tidak masuk dalam alokasi perbelanjaan modal perusahaan 2014. “Dari anggaran belanja tunai, ianya October 2014 l Coal Age Indonesia l 3

Mining success story construction of a commercial-scale reactor module in an end-to-end pre-commercial plant. The Advanced Lignite Demonstration Program is jointly funded by the Commonwealth and Victorian governments. It supports the development of pre-commercial, demonstration-scale, upgrading processes for raw lignite. This project aligns with the MoU with Bukit Asam which contemplates utilizing Cat-HTR technology for integrated resource development projects in Indonesia and Australia. Ignite has successfully converted samples of Bukit Asam’s 7.3 billion tonnes of low rank coal into Syncrude and upgraded coal at its pilot facilities. Ignite’s Len Humphreys says Cat-HTR offers a viable solution to both countries increasing

dependency on crude oil and petroleum imports, which appears to align well with the Indonesian Government directive to add more local value.

Capex budget Milawarma says if the Ignite investment proceeds it is likely to be funded from Bukit Asam’s internal cash, even though the plan is not included in the company’s allocation of capital expenditure for 2014. “From our cash budget, it will still be Rp3.5 trillion,” he said. “However, if later the project proves highly profitable and enlarged PTBA will not close the possibility to open another funding option. It (the project) could fund itself through project financing,” he added.

PT Bukit Asam’s coal properties and infrastructure in Indonesia. Harta batubara dan infrastruktur PT Bukit Asam di Indonesia

akan tetap berjumlah Rp 3,5 triliun.” katanya. “Bagaimanapun, kalau nanti proyek ini ternyata membawa keuntungan dan membesar, PTBA tidak menutup kemungkinan untuk membuka opsi pendanaan yang lain. Ia dapat mendanai diri sendiri melalui pendanaan proyek.” Sebagian besar dari anggaran belanja modal perusahaan-perusahaan milik negara yang Rp. 1,54 triliun, untuk 2014 digunakan pada proyek peningkatan kapasitas Pelabuhan Tarahan dari 60.000-80.000 ton ke 200.000 ton. Sekertaris Bukit Asam Joko Pramono mengatakan bahwa pada 30 Juni perusahaan mengeluarkan Rp502,63 milyar perbelanjaan modal yang kebanyakannya untuk mendanai proyek-proyek perkembangan. Perusahaan sekarang sedang mengerjakan beberapa proyek, termasuk pengluasan pelabuhan dan pengangkutan di kawasan-kawasan pertambangannya di Sumatera Selatan, beberapa proyek pembangkit tenaga dan sebuah proyek ‘coal bed methane’ (CBM), yang diharapkan memulai mem4 l Coal Age Indonesia l October 2014

produsir 40 juta kubik feet per hari pada 2015. Walaupun harga batubara dunia turun, hasil Bukit Asam meningkat dengan l.k. 33% untuk setengah tahun ini ketimbang 2013. Keuntungan bersih ialah Rp.1,16 triliun (US$99,37 juta) dan pendapatan meningkat dengan l.k. 18%, dari Rp.5,43 triliun pada pertengahan tahun lalu ke Rp.6,43 triliun dalam waktu yang sama untuk tahun ini. Harga penjualan rata-rata meningkat dengan l.k. 17% ke Rp.726.766 per ton ketimbang Rp.621,792 tahun lalu. Menurut Joko Pramono kenaikan-kenaikan dimungkinkan oleh multi-branding dan strategi efisiensi perusahaan. “Kami memasarkan batubara kami menggunakan tujuh cap dagang, dimana kami alokasikan batubara berkalori tinggi untuk ekspor dan selebihnya untuk penggunaan dalam negeri. Dengan demikian kami dapat menutupi kerugian-kerugian yang disebabkan oleh turunnya pasar batubara global, dengan harga premium kami”.

Most of the state-owned company’s capex budget of Rp1.54 trillion for 2014 is being used for the Port Tarahan upgrading project which aims to increase port capacity from 60,000-80,000 tonnes to 200,000 tonnes. Bukit Asam secretary Joko Pramono said as at June 30 the company had disbursed Rp502.63 billion of capex, mostly to finance development projects. The company is working on several projects, which include the expansion of the ports and railways at its mining sites in South Sumatra, several power-plant projects and a coal bed methane (CBM) project, which is expected to start producing 40 million cubic feet per day by 2015. Despite the global decline in coal prices, Bukit Asam’s bottom line increased by 33% in the first half of 2014 compared to the same period of 2013. Net profit was Rp1.16 trillion (US$99.37 million) while revenue increased by about 18%, from Rp5.43 trillion in the first half of 2013 to Rp6.43 trillion during the same period this year. Average selling prices rose by about 17% to Rp726,766 per tonne, compared to Rp621,792 last year. Joko Pramono attributed the increases to multibranding and an efficiency strategy. “We market our coal in seven brands, of which we allocate the high-calorie coals for export and the remainder for domestic consumption. “This way, we manage to cushion losses from a dwindling global coal market with our premium pricing.” He said Bukit Asam was upbeat about maintaining the growth until the end of the year, particularly now that the company had joined the Jakarta Futures Exchange (JFX) which allowed it to sell its coal online to highest bidders. The move would further guarantee the company getting the best price for its products despite the bearish coal market. Coal output rose by 15.61% in the six months to 7.7 million tonnes. The sales volume, however, was flat at 8.83 million tonnes, compared to the

Ia mengatakan bahwa Bukit Asam bertekad meneruskan pertumbuhan ini sampai akhir tahun, terutama sekarang perusahaan telah bergabung dengan Bursa Futures Jakata yang mengizinkannya menjual batubaranya secara online kepada pembeli dengan tawaran harga tertinggi. Dengan demikian perusahaan mendapatkan harga terbaik untuk produk-produknya walaupun pasaran batubara buruk. Produksi batubara meningkat dengan 15,61% dalam enam bulan ke 7,7 juta ton. Jumlah penjualan bagaimanapun tetap 8,83 juta ton, ketimbang 8,74 juta ton dijual tahun lalu, disebabkan pengurangan pembelian-pembelian pihak ketiga. Bukit Asam menjual jumlah batubara yang lebih kurang sama di pasaran domestik dan yang untuk ekspor.

Perdagangan JFX Bukit Asam bermitra dengan JFX untuk menjual batubara nya ke pasaran dunia. Sebagai bagian dari perjanjian, perusahaan

Mining success story 8.74 million tonnes it sold last year, due to a decline in third-party purchases. Bukit Asam sold an almost equal amount of coal to the domestic market as for export.

JFX trading Bukit Asam has teamed up with JFX to sell its coal supply to the overseas market. As part of the agreement, the company agreed to put up 75,000 tonnes of its coal scheduled for September delivery to be offered through local exchanges. The sale marked the first physical coal contract to be traded in the JFX. The offering was to be divided into two tranches; the first involved 60,000 tonnes of coal with a calorific value of 6450 kilocalories per kg and was scheduled for shipment through Tarahan port in Lampung province. The second tranche includes 15,000 tonnes of coal with a calorific value of 6300 kilocalories, to be delivered to Kertapati port in South Sumatra. “Trading through JFX is expected to be more transparent and efficient compared to the conventional method,” said Milawarma. He added that the company could only commit to sell a small portion of its coal output through the local exchange as most of its production volume for this year had already been contracted. The 75,000 tonnes is far less than the original target for 2014 which was 10 million tonnes. “Of course we look to sell more through the exchange, maybe to the point similar to our export volume,” Milawarma said. Bukit Asam sold 24.7 million tonnes of coal last year, of which around 50% was for the overseas market. Commodity, Futures Trading Regulatory Agency head Sutriono Edi confirmed that Bukit telah menyetujui untuk mengalokasikan 75.000 ton batubara yang direncanakan pengirimannya di bulan September, untuk ditawarkan melalui bursabursa setempat. Penjualan ini menjadi perjanjian batubara fisik pertama yang dijual-belikan di JFX. Tawaran ini direncanakan terbagi kepada dua pengiriman;myang pertama sejumlah 60.000 ton batubara dengan nilai kalorifik 6450 kilokalori per kg dan dijadwalkan diangkut melalui pelabuahan Tarahan di Propinsi Lampung. Pengiriman kekdua termasuk 15.000 ton batubara bernilai kalorik 6300 kilokalori per kg yang akan diangkut melalui pelabuhan Kertapati di Sumatera Selatan. “Perdagangan melalui JFX diharapkan akan lebih transparen dan efisien etimbang mtode konvensional,” kata Milawarma. Ia menambahkan bahwa perusahaan hanya dapat komit menjual Jumlah kecil saja melalui bursa setempat karena hampir keseluruhan jumlah produksi untuk tahun ini sudah dikontrakan. 75.000 ton tersebut jauh lebih kecil dari target semula untuk 2014, yaitu 10 juta ton. “Tentu saja kami bermaksud untuk menjual lebih banyak melalui bursa, barangkali sampai sama dengan jumlah ekspor kami,” kata Milawarma. Bukit

Bukit Asam and Jakarta Futures Exchange officials at the launch of the Online Physical Coal Trading facility. Para petinggi Bukit Asam dan Bursa Futures Jakarta pada pelancaran sarana perdagangan fisik batubara secara online. Asam’s decision was in line with the governWhen the Dutch Colonial period ended in ment’s push to make domestic commodity Indonesia, the mining workers fought for the exchanges more active and involved in price dis- nationalization of the mines. In 1950, the covery. Indonesia has two domestic exchanges Indonesian Government approved the establishwith the other being the Indonesia Commodity ment of state-owned Bukit Asam Coal Mine or and Derivative Exchanges (ICDX). Perusahaan Negara Tambang Arang Bukit Asam (PN TABA). History In 1981, PN TABA converted its status to a limCoal mining in Tanjung Enim was initiated by ited liability company under the name of PT the Dutch Colonial Government in 1919 by oper- Tambang Batubara Bukit Asam (Persero) Tbk. To ating the first coal mine using the open pit method. further develop the coal industry in Indonesia, in Using underground mining methods, initial oper- 1990 the government merged Perum Tambang ation commenced in 1923 and lasted until 1940, Batubara with the company. In line with the national energy security develwhile commercial production began in 1938. Asam menjual 24,7 jta ton batubara tahun lalu, dimana 50% untuk pasaran luar negeri. Ketua Badan Hukum Perdagangan Dimuka dan Komoditas, Sutriono Edi mengkonfirmasikan bahwa keputusan Bukit Asam sejalan dengan dorongan pemerintah untuk bursa komoditas domestik menjadi lebih aktif dan masuk dalam perdagangan harga. Indonesia mempunyai dua bursa domestik dan yang satu lagi ialah Bursa Komoditas dan Derivatif Indonesia (ICDC).

Sejarah Pertambangan batubara di Tanjung Enim dimulai oleh pemerintah colonial Belanda pada tahun 1919 dengan melaksanakan tambang batubara pertama yang menggunakan cara pertambangan lubang terbuka. Operasi mula-mula menggunakan cara tambang bawah tanah bermula pada tahun 1923 dan berjalan sampai tahun 1940, sedangkan produksi komersil bermula ditahun 1938. Ketika masa penjajahan Belanda berakhir di Indonesia, para pekerja pertambangan berusaha keras untuk pengnasionalisasian tambang-tambang. Pada tahun 1950 pemeerintah Indonesia

menyetujui didirikannya perusahaan negara Tambang Batubara Bukit Asama tau Perusahaan Negara Tambang Arang bukit Asam (PN TABA). Pada tahun 1981, PN TABA mengganti statusnya ke perusahaan terbatas dengan nama PT Tambang Batubara Bukit Asam (perser) Tbk. Bagi mengembangkan lanjut industri batubara Indonesia, pada tahun 1990 pemerintah menggabungkan Perum Tambang Batubara dengan perusahaan. Sesuai dengan program pengembangan sekuritas tenaga nasional, perusahaan diminta oleh pemerintah untuk membangun peerdagangan briket (batu arang). Pada 23 Desember 2002 perusahaan ini menjadi sebuah perusahaan terdaftar di Bursa Indonesia dengan kode PTBA.

Tanggungjawab Korporat PTBA selalu sadar akan tanggungjawab lingkungan sepanjang operasi pertambangannya. Rehabilitasi permukaan bumi adalah sebuah prioritas perusahaan dan menjadi bagian dari proses perencanaan jangka panjangnya. Bagi meningkatkan kekuatan bertandingnya dan potensi-potensinya, Bukit asam mnggunakan October 2014 l Coal Age Indonesia l 5

Mining success story opment program, in 1993 the company was assigned by the government to develop coal briquette business. On December 23, 2002 the company became a publicly listed company on the Indonesian Stock Exchange under the code of PTBA.

Corporate responsibilities PTBA has always remained conscious of its environmental responsibilities throughout the life of its mining operations. Rehabilitation of the landscape is a priority for the company and forms an integral part of the long-term planning process. To improve its competitive power and optimize the potentials, Bukit Asam has set the international standard as its main target on operations and has received many certificates and awards for this. In 2003, Bukit Asam received Certificates on Health and Safety in Mining Works (SMK3) from the government. In addition, it also received ISPS Code (International Ship and Port Facility Security) Certification in 2004 for Tarahan Coal Terminal, Kertapati Port and Teluk Bayur Terminal. On June 26, 2014, it received certification on the Bukit Asam Management System (SMBA) integrated with ISO 9001:2008 Quality Management System, ISO 14001:2004 Environmental Manage ment System, OHSAS 18001:2007 Occupational Health and Safety Management Systems from PT TUV Nord Indonesia. The company is also involved with many CSR programs in and around the communities in which it operates. One of these programs (BIDIKSIBA) involves scholarships and subsidies for students from poorer families in South Sumatra to attend higher education facilities. This year 28 students have been assisted to study at Institut Pertanian Bogor (IPB), three students at IAIN Palembang, one at the University of PGRI Palembang, 20 at the University of Sriwijaya and 17 at the Polytechnic of Sriwijaya Palembang. The company has strongly supported the establishment of the Ombilin Coal Mining Museum, which was opened on Saturday, June 14, 2014. The museum in Sawahlunto Ombilin, West Sumatra, was established by Deputy Minister of Tourism and Creative Economics, Dr Sapta Nirwanda.

standard internasional sebagai target operasioperasinya dan telah menerima banyak tanda penghargaan dan penganugerahan untuk kerjakerja ini. Pada tahun 2003 Bukit Asam menerima suratsurat penghargan mengenai Kesehatan dan Keselamatan dalam Kerja-kerja pertambangan (SMK3) dari pemerintah. Disamping itu ia telah pula menerima Sertifikat kode ISPS (International Ship and Port Facility Security – Keamanan Kapal Internasional dan Pelabuhan) pada tahun 2004 untuk Pelabuhan Batubara Tarahan, Pelabuhan Kertapati dan Pelabuhan Batu bara Teluk Bayur. Pada 26 Juni 2014, perusahaan menerima pengakuan system pengelolaan Bukit Asam (SMBA) 6 l Coal Age Indonesia l October 2014

The Ombilin Coal Mining Museum in Sawahlunto Ombilin, West Sumatra. Museum pertambangan batubara Ombilin di Sawahlunto, Sumatera Barat.

Bukit Asam has supported the cultivation of sorghum on former mining land. Bukit Asam mendukung penanaman gandum di tanah bekas pertambangan.

yang tergabung dengan ISO 9001:2008 Sistem Pengelolaan Mutu, ISO 14001:2004 Sistem engelolaan Lingkungan, OHSAS 18001:2007 Sistem Pengelolaan Kesehatan Kerja dan Keselamatan dri PT TUV Nord Indonesia. Perusahaan juga banyak berkecimpung dalam program-program tanggungjawab korporat (CSR) didalam dan sekeliling masyarakat dimana is beroperasi. Salah satu program ini (BIDIKSIBA) menyangkut beasiswa dan subsidi untuk mahasiswa dari keluarga yang kurang mampu di Sumatera Selatan untuk kuliah di perguruan-perguruan tinggi. Tahun ini 28 mahasiswa dibantu kuliah di Institut Pertanian Bogor (IPB), tiga mahasiswa di

IAIN Palembang, satu di Universitas PGRI Palembang, 20 di Universitas Sriwijaya dn 17 di Politeknik Sriwijaya, Palembang. Perusahaan telah mendukung besar-besaran pembentukan Museum Pertambangan Batubara Ombilin yang dibka pada hari Sabtu tgl 14 Juni 2014. Museum ini berada di Sawahlunto Ombilin, Sumatera Barat, dibentuk oleh Wakil Menteri Turisme dan Ekonomi Kreatif, Dr Sapta Nirwanda. Direktur Produksi dan Operasi Bukit Asam Heri Supriyanto berharap museum ini akan menjadi pusat informasi untuk sejarah pertambangan batubara Indonesia sekaligus menarik turis, domestik dan internasional. Atraksi lainnya di Sumatera Barat yang didukung oleh perusahaan adalah Bom Air

Mining success story Bukit Asam’s director of production and operations Heri Supriyanto hopes the museum will become a centre of information for the coal mining history in Indonesia as well as being able to attract tourists, both domestic and international. Another attraction in West Sumatra that has been supported by the company is the Sawahlunto Water Boom. This was formerly a cold springs which was run by PT Bukit Asam UPO until it was handed over to the local government in 2004. It has an area of 3.5 hectares and is capable of accommodating up to 3000 visitors. Satwa Kandhi Garden is one of the leading

tourist attractions in Sawahlunto and stands on post-mining land belonging to PTBA UPO. It has been reclaimed and given to the local government. The initial set-up of the garden involved PTBA UPO in terms of basic development foundation. Bukit Asam is also involved in the distribution of nutrition packets among poor and low-income societies. To commemorate the company’s 33rd anniversary in 2014, there were 8200 nutrition packets prepared containing 10kg of rice, 1 litre of cooking oil, 1kg of granulated sugar, 2 cans of sweetened condensed milk, and 1 can of biscuits. These were distributed to 24 villages in five sub-

districts of Muara Enim District and Lahat District with a total value of more than Rp1.6 billion. Also with health in mind, the company hosted a diabetes lecture earlier this year and also hosted a mass circumcision activity in Tanjung Agung Sub-District. Another CSR activity the company has been involved with is the cultivation of sorghum on former mining land. Sorghum has great potential to be developed in Tanjung Enim as an alternative commodity for food, feed, energy and industrial purposes, as well as providing an economical alternative in reclamation of post-mining land, which is quite extensive in this region.

The Sawahlunto Water Boom attraction in West Sumatra. This was formerly a cold springs which was run by PT Bukit Asam UPO. Peragaan atraksi taman/bom air di Sumatera Barat. Tadinya tempat ini ialah sebuah sumber air dingin dikelola oleh PT Bukit Asam UPO.

Sawahlunto. Tadinya tempat ini ialah sebuah sumber air dingin dikelola oleh PT Bukit Asam UPO sebelum diserahkan kepada pemerintah setempat pada tahun 2004. Luasnya ialah 3,5 hektar dan dapat memuat 3000 tamu. Taman Satwa Kandhi adalah salah satu daya tarik turis utama di Sawahlunto dan berdiri diatas tanah bekas tambang punyanya PTBA UPO. Ia telah dipugar dan dibrikan kepada pemerintah setempat. Pembinaan awal dari Tamah ini menyangkut PTBA UPO membuat fondasi bangunannya.

Bukit Asam juga ikut serta membagikan paketpaket bergizi kepada masyarakat miskin dan berpendapatan rendah. Untuk merayakan ulang tahun ke 33 perusahaan pada tahun 2014, 8200 paket-paket bergizi terdiri dari 10 kg beras, 1 liter minyak masak, 1 kg gula , 2 kaleng susu kental dan 1 kaleng biscuit. Ini dibagikan ke 24 kampung di 5 kecamatan di Kabupaten Muara Enim dan Kabupaten Lahat yang seluruhnya berharga Rp1,6 milyar. Juga mengingat kesehatan, perusahaan telah pula mengadakan kuliah mengenai diabet awal

tahun ini dan sunatan masal di Kecamatan Tanjung Agung. Satu lagi aktivitas CSR perusahaan telah ikut serta ialah penanaman gandum diatas tanah bekas tambang. Gandum ini mempunyai potensi untuk dikembangkan di Tanjung Enim sebagai alternatif komoditas makanan manusia, makanan hewan, tenaga dan keperluan-keperluan industri, sekaligus menyediakan alternatif ekonomis reklamasi bumi setelah pertambangan, yang cukup luas didaerah ini. October 2014 l Coal Age Indonesia l 7

Indonesia

Balangan Coal production under way ADARO Energy has started commercial production from PT Semesta Centramas (SCM), one of the three coal licence companies it acquired a 75% stake of in 2013. The SCM product is branded as Balangan Coal and has similar low pollutant characteristics as Adaro’s Envirocoal. During the June quarter Adaro produced 77,335 tonnes at SCM and on June 6 shipped 53,274 tonnes of Balangan Coal to a customer in Thailand. The company says it is pleased with progress at the new project and will continue exploration to fully detail the coal resources and reserves in accordance with the JORC 2012 standard. It expects to complete revised estimates of resources and reserves by the end of 2014. Production at SCM began after Adaro completed construction of the haul road and bridge to connect to the infrastructure at the PT Adaro Indonesia (AI) property, which is just 11km to the northwest. Adaro is using in-house contractors as well as the existing AI infrastructure in order to keep the cost to produce Balangan Coal relatively low. Subsidiary PT Saptaindra Sejati (SIS) is responsible for all mining activities from overburden removal and coal hauling. SIS will deploy more heavy equipment to support Balangan Coal’s future production plan. Another subsidiary, PT Maritim Barito Perkasa is responsible for the coal barging and ship loading activities from SCM. Adaro plans to produce up to 1 million tonnes in 2014 at SCM and says the Balangan Coal continues to receive interest from a range of customers, including those from Thailand, India and

Overlooking operations at Adaro Energy’s massive AI operations in Kalimantan. Operasi raksasa AI di Adaro Energy di Kalimantan. during the quarter was good and it has concluded Indonesia. This new production helped boost Adaro’s the majority of pricing negotiation for this year. Adaro says, “Our focus in 2014 remains to production for the June quarter to 13.85 million tonnes with the AI operation contributing 13.76 improve efficiency and productivity of our opermillion tonnes, which was a 2% improvement on ations, maintain a reliable coal supply to our custhe corresponding quarter of 2013. This was due tomers and continue to preserve our strong balto the combination of solid contractors’ perform- ance sheet. We are working hard with our contractors and partners to strive for cost efficiency ance and the end of the wet season. The company is on track to achieve its 2014 and use capital more carefully to support our production guidance of 54 million to 56 million operations. “Despite the current weakness in the coal martonnes. Adaro says it continued to see solid demand for its coal during the quarter with 14.47 ket, we remain on track to achieve our annual tarmillion tonnes sold, a 4% increase on the June gets and long-term objective of creating maxiquarter of 2013. It says demand for Envirocoal mum sustainable value from Indonesian coal.”

Produksi Batubara Balangan mulai dilaksanakan ADARO Energy telah memulai produksi komersil PT Semesta Centramas (SCM), salah satu dari tiga perusahaan batubara berlisensi yang dipunyainya sebesar 75% pada tahun 2013. Produk SCM yang dipanggil Batubara Balangan juga berpolutant rendah seperti halnya Envirocoalnya Adaro. Pada kwartal Juni Adaro memprodusir 77.335 ton di SCM dan pada 6 Juni mengapalkan 53.274 ton Batubara Balangan kepada langganan di Thailand. Perusahaan mengatakan puas dengan kemajuan proyek baru ini dan akan terus melaksanakan eksplorasi bagi menguraikan penuh sumber dan cadangan batubara sesuai dengan standard JORC 2012. Diharapkannya estimasi ulang sumber dan cadangan ini selesai pada akhir 2014. Produksi di SCM dimulai seselesainya konstruksi jalan dan jembatan pengangkutan yang menghubungkannya dengan infrastruktur di sarana PT Adaro Indonesia (AI), 11 km di barat laut. Adaro menggunakan kontraktor sendiri dan juga insfrastruktur AI yang ada bagi mempertahankan biaya pro8 l Coal Age Indonesia l October 2014

duksi Batubara Balangan supaya relative rendah. Anak perusahaan, PT Saptaindra Sejati (SIS) bertanggungjawab untuk semua aktivitas pertambangan dari membuang sampah tambang hingga pengangkutan. SIS akan menggunakan lebih banyak alat-alat berat untuk membantu rencana produksi Batubara Balangan kedepan. Satu lagi anak perusahaan, PTP Maritim Barito Perkasa bertanggung jawab untuk pengangkutan dan aktivitas bongkar muat dari SCM. Adaro merencanakan untuk memprodusir hingga 1 juta ton dalam tahun 2014 di SCM dan berkata bahwa Batubara Balangan terus mendapat perhatian langganan-langganan, termasuk dari Thailand, India dan Indonesia. Produksi baru ini telah meningkatkan produksi Adaro untuk kwartal Juni mencapai 13,85 juta ton dengan operasi AI menyumbang 13.76 juta ton, yang berarti penambahan sebanyak 2% ketimbang kwarter yang sama pada tahun 2013. Pencapaian ini dimungkin dengan hasil kerja kontraktor yang baik dan berakhirnya musim hujan. Perusahaan

berada di jalan keberhasilan mencapai produksi antara 54 smpai 56 juta ton pada tahun 2014. Adaro berkata bahwa ia melihat permintaan yang kukuh bagi batubaranya dalam kwartal dengan 14,47 juta ton sudah terjual, peningkatan sebanyak 4% ketimbang kwartal Juni 2013. Ia mengatakan bahwa permintaan akan Envirocoal dalam kwartal tetap baik dan ia telah menyelesaikan kebanyakan negosiasi harga untuk tahun ini. Adaro berkata, “Tujuan kami dalam tahun 2014 tetap meningkatkan efisiensi dan produktivitas operasi kami, menjamin penerusan pengiriman batubara kepada para langganan kami dan terus memelihara balance-sheet yang kuat. Kami tengah bekerja keras dengan para kontraktor dan mitra kami bagi mencapai efisiensi biaya dan penggunaan modal yang lebih berhati-hati untuk mendukung operasi kami. Walaupun pasaran batubara pada waktu ini agak lemah, kami tetap beranjak dalam jalur pencapaian sasaran tahunan dan objektif jangka panjang untuk menjelmakan nilai maksimal batubara Indonesia.”

Indonesia

BBM development on schedule DEVELOPMENT of the Bumi Barito Mineral Coal Project (BBM) in Central Kalimantan continues on schedule with Cokal Ltd securing additional loan funds of US$5.65 million from a fund managed by Platinum Partners, bringing the total loan for project development to US$9.15 million. Due to the significant progress being made with the project and finalization of the BBM financing package, Platinum agreed to advance the additional funds to ensure progress is maintained while the final steps of the BBM financing documentation are put in place. The funds have enabled work on the detailed engineering and final design to progress and will enable Cokal to complete the preparation work necessary to enable site-based construction to start promptly once project financing is finalized. Cokal has agreed to extend Platinum’s exclusivity period to October 6, 2014 to finalize finance agreements. Repayment of the first loan has been extended with the total US$9.15 million loan now repayable within 6 months of receiving the additional funds. The total loan can also be rolled over into the project financing facility once it is in place. The additional funds follow Cokal being issued an In-Principal Forestry Permit (Izin Princip Ijin Pinjam Pakai Kawasan Hutan) for BBM. This permit is the last stage prior to issuance of the Borrow and Use of Forest Area Permit (Ijin Pinjam Pakai Kawasan Hutan) which allows the company to start construction and mining. An initial area of about 1242 hectares has been approved by the Forestry Department for operation of the port, haul road and initial mine site once the conditions of the In-Principal Forestry

Examining core from Cokal’s BBM project in Central Kalimantan. Memeriksa inti proyek BBM Cokal di Kalimantan Tengah Permit are met. In accordance with standard up to potentially 6 million tonnes of premium Mining Department practice, the initial opera- coking coal for future development and this contional area is reviewed by the department and siderably increases our confidence in the success extended as required to meet the planned mine of this exciting project.” In addition to providing written undertakings development. Cokal’s chairman Peter Lynch says, “We are regarding the payment of relevant taxes and rehapleased that the final stage in forestry permitting bilitation, Cokal will spend the next 2 to 3 months is nearing completion. The effort of our team to completing the pegging of the Borrow and Use achieve this milestone in the timeframe is testi- Forest Area and satisfying all conditions required mony of the way in which Cokal has been able to by the In-Principle Forestry Permit. The timing of work in a professional manner with stakeholders this will mainly be driven by the boundary pegging which requires about 2000 concrete boundfrom all three levels of government.” He says, “We have the ability to expand the ary pegs to be put in place at the boundary of the operation from an initial 2 million tonnes/annum initial Borrow and Use Forest Area.

Perkembangan BBM tepat waktu PERKEMBANGAN proyek batubara mineral Bumi Barito (BBM) di Kalimantan Tengah berjalan tepat waktu dengan Cokal Ltd mendapatkan dana pinjaman tambahan sejumlah US$5,65 juta dari dana yang dikelola oleh Platinum Partners, menjadikan jumlah pinjaman untuk perkembangan proyek ke US$9,15 juta Dengan kemajuan perkembangan proyek dan finalisasi paket dana untuk BBM, Platinum menyetujui penyediaan dana tambahan supaya kemajuan terus berjalan baik sewaktu tahap-tahap akhir dokumentasi pendanaan BBM diselesaikan. Dana tersebut telah memungkinkan pekerjaan detil teknis dan desain akhir dilaksanakan dan juga memungkinkan Cokal untuk menyelesaikan kerja-kerja persiapan supaya konstruksi di lapangan lansung dimulai begitu pendanaan proyek selesai. Cokal telah menyetujui untuk memperpanjang periode ekslusifnya sampai 6 Oktober 2014 I menyelesaikan perjanjian-perjanjian pendanaan. Pembayaran kembali pinjaman pertama telah pula

diperpanjang sehingga keseluruhan pinjaman berjumlah US$9.15 juta tersebut sekarang dapat dibayar dalam waktu 6 bulan dari waktu penerimaan dana tambahan tersebut. Keseluruhan pinjaman dapat pula dijadikan sarana pendanaan proyek begitu ia bermulai. Dana tambahan tersebut berhasil setelah Cokal mendapatkan Izin Prinsip Ijin Pinjam Pakai Kawasan Hutan untuk BBM. Izin ini adalah tahap terakhir sebelum mendapatkan Ijin Pinjam Pakai Kawasan Hutan yang mengizinkan konstruksi dan pertambangan. Luas permulaan sejumlah lebih kurang 1242 hektar telah diizinkan oleh Departemen Perhutanan untuk operasi pelabuhan, jalan pengangkutan dan tempat pertambangan begitu syarat-syarat Izin Prinsip Izin Perhutanan telah dipenuhi. Sesuai dengan standard praktis Departemen Pertambangan, area operasi permulaan ditinjau oleh departemen dan dikembangkan seperlunya bagi keperluan rencana perkembangan tambang

Ketua Komisaris Cokal Peter Lynch berkata, “Kami gembira dengan penyelesaian izin perhutanan. Keberhasilan tim kerja kami mencapai tahap ini dalam rangka waktu ditetapkan adalah suatu bukti cara kerja professional Cokal dengan ketiga tingkat pemerintahan.” Ia mengatakan, “Kami dapat memperluas operasi dari 2 juta ton/tahun pada masa permulaan ke 6 juta ton batubara ampas untuk perkembangan kedepan dan ini lebih lagi meningkatkan kepercayaan kami akan suksesnya proyek yang menarik ini.” Disamping memberikan pertanggungjawaban pembayaran pajak-pajak dan rehabilitasi, Cokal akan menyelesaikan penegakkan batu-batu perbatasan kawasan Hutan Pinjam dan Hutan Pakai dan memenuhi syarat-syarat Ijin Prinsip Perhutanan. Waktunya tergantung pada kerja penegakkan perbatasan yang menggunakan 2000 batu beton di perbatasan kawasan Hutan Pinjam dan Hutan Pakai. October 2014 l Coal Age Indonesia l 9

Indonesia

Orpheus sells non-performing assets sensible to extract a personal legal underORPHEUS Energy has executed sales taking from Mr Suksmanto before agreements subject to shareholder announcing the details of the assets sale. approval for the sale of its interests in four Through this undertaking Mr Suksmanto Indonesian coal prospects. The four assets personally commits to settle all outstanding – Papua, B34, Citra Bara Prima (CBP) and debts by PT Mega Coal and related parties, Alam Duta Kalimantan (ADK) - are being and to indemnify Orpheus and related parsold back to Mr Nugroho Suksmanto and ties against cost, loss or liability suffered by PT Mega Coal companies for a total conOrpheus or related parties in the case of a sideration of US$8.2 million. breach of the project sales agreements. Orpheus continues to work with its joint During the June quarter production from venture (JV) partner, Mr Suksmanto and the ADK project was dramatically impactPT Mega Coal, to deliver value for shareRemoving overburden at Orpheus Energy’s ADK project. ed by poor weather which caused a number holders via the sale of non-core and nonperforming assets. Membuang sampah atas batubara di proyek ADK Orpheus of issues, and by the appointment of a new mining contractor. Only 3258 tonnes of The original JV agreements Orpheus Energy. coal were mined from ADK and 4697 entered into with Mr Suksmanto and PT tonnes were traded for a total sales volume Mega Coal since 2011 for each project, of 7955 tonnes. specifically provided for the potential Production increased markedly during repayment of funds expended by Orpheus July with 10,287 tonnes shipped before the in acquiring and developing these projects end of the month from stockpiled ADK introduced by the JV partners. coal and trading. The new contractor At the time Orpheus directors deemed it reported that production was under way prudent to negotiate such provisions to with 30,000 expected to be produced durprotect shareholders’ interests should the ing August, increasing to 40,000-plus projects not turn out to be of sufficient tonnes each month after that. quality to proceed in a profitable manner. Orpheus says the US$3.9 million profit As it has transpired, none of the projects on the sale of assets will be an immediate have performed in a manner that gives Orpheus directors confidence to proceed Production at ADK during the June quarter was heavily improvement in net profit with the disposal of a loss making entity contributing furfurther and, accordingly, the JV partners impacted by poor weather. have honoured the original agreements and Produksi ADK dalam kwartal Juni dipengaruhi cuaca buruk. ther to future profitability. Orpheus continues to undertake due diligence on a number agreed to the sale back of these assets. Further, while US$350,000 has already been been delays in the receipt of further milestone of geographically and geologically diverse, received by Orpheus in initial deposits, there have deposits and the Orpheus Board determined it potential near-term cash-flow projects.

Orpheus menjual aset-aset yang merugikan ORPHEUS Energy telah membuat perjanjian penjualan tergantung pada persetujuan pemegang saham untuk menjual hak miliknya di empat perusahaan batubara Indonesia. Keempat aset-aset tersebut adalah – Papua, B34, Citra Bara Prima (CBP) dan Alam Duta Kalimantan (ADK) – akan dijual kembali kepada perusahaan-perusahaan Nugroho Suksmanto dan PT Megal Coal untuk US$8,2 juta. Orpheus meneruskan kerjasama dengan mitra JV nya, Bp Suksmanto dan PT Mega Coal, bagi memberikan nilai pada pemegang sahamnya melalui penjualan aset-aset yang tidak inti dan aset-aset yang tidak menghasilkan. Perjanjian asal JV dengan Bp Suksmanto dan PT Mega Coal sejak 2011 untuk setiap proyek, secara khusus menyediakan pengembalian dana-dana yang dikeluarkan oleh Orpheus dalam mendapatkan dan mengembangkan proyek-proyek ini yang diperkenalkan oleh mitra JV tersebut. Pada waktu itu para direktur Orpheus berpendapat ada baiknya menegosiasikan cadangan-cadangan ini untuk melindungi hak-hak pemilik saham seandainya proyek-proyek ini ternyata tidak mem10 l Coal Age Indonesia l October 2014

punyai mutu yang memungkinkan diteruskan secara menguntungkan. Memang ternyata bahwa tidak satu pun dari proyek-proyek tersebut yang mempunyai kinerja yang meyakinkan para direktur Orpheus untuk diteruskan lagi, dan karenanya mitra JV telah memenuhi syarat-syarat perjanjianperjanjian asli dan setuju untuk membeli kembali aset-aset tersebut. Ditambahkan, walaupun US$350.000 telah diterima Orpheus sebagai setoran pertama, penerimaan setoran-setoran selanjutnya telah mengalami keterlambatan dan Komisi Orpheus memutuskan wajar untuk meminta perjanjian hukum pribadi Bp Suksmanto sebelum mengumumkan detil-detil penjualan aset-aset. Melalui perjanjian ini Bp Suksmanto secara pribadi berjanji/komit untuk membayar semua hutang-hutang PT Mega Coal dan partai-partai tersangkut, dan untuk mengganti-rugi Orpheus dan partai-partai tersangkut akan biaya, kehilangan atau tanggungjawab yang terpaksa ditanggung oleh Orpheus dan partai-partai tersangkut seandainya ada kasus pelanggaran perjanjianperjanjian penjualan proyek.

Selama kwartal Juni, produksi proyek ADK terkandas secara dramatis oleh cuaca buruk yang mengakibatkan beberapa isu-isu and dengan penunjukkan kontraktor pertambangan baru. Hanya 3258 ton batubara dikeluarkan oleh ADK dan 4697 ton didagangkan untuk jumlah penjualan 7599 ton. Produksi meningkat secara besar-besaran dalam bulan Juli dengan 10.287 ton dikirim sebelum akhir bulan dari cadangan batubara ADK dan perdagangan. Kontraktor baru melaporkan bahwa produksi telah bermulai dengan 30.000 diperkirakan dikeluarkan dalam bulan Agustus, meningkat ke 40.000 ton setiap bulan setelah itu. Orpheus mengatakan bahwa keuntungan sebesar US$3,9 juta dari penjualan aset-aset merupakan pembaikan segera dalam keuntungan bersih dengan penjualan aset-aset yang merugikan menyumbang kepada keuntungan dimasa depan. Orpheus terus melaksanakan pemeriksaan pada beberapa proyek-proyek berpotensi memberikan pengaliran tunai/cash-flow, ditempattempat berbeda secara geografis dan geologisnya.

Indonesia

Bayan signs Tabang contracts

Mining and stockpiling operations at a Bayan Resources’ coal project in Kalimantan. Operasi pertambangan di salah satu proyek batubara Bayan Resources di Kalimantan. PT BAYAN Resources’ subsidiary PT Indonesia Pratama (IP) has signed mining services and rental agreements with PT Petrosea Tbk covering the Tabang coal project in East Kalimantan. The contract covers a period of seven years with work to commence in the final quarter of 2014. The scope of work includes overburden removal, coal haulage from the pit to the intermediate crushing facility and/or run of mine stockpiles as well as the rental of some heavy equipment. The total contract volume is 71.9 million bank cubic metres of overburden and 65.5 million tonnes of coal. Bayan’s president director Eddie Chin said, “We are very pleased to sign these contracts with Petrosea which has been a long-time partner of the Bayan Group. This contract will see the first large-scale use of dozer push operations for overburden removal in Indonesia. “Tabang is a world-class coal deposit and by employing technologies such as this we believe Tabang will be in the lowest quartile of production cost in Indonesia.” Petrosea’s president director Rick Ness said, “We are pleased to be awarded this project. Bayan Resources Group is our longest standing client and this represents a continuation of the long relationship. Petrosea has been providing mining services to Bayan Resources Group for 15 years and these agreements extend the tenure of our mining services into the next decade.”

These agreements follow another signed by IP in May with PT BIS Industries for the provision of coal transportation services for product from the Tabang mine, which is in the final stages of the development process. The BIS contract covers seven years and is for a total volume of 64 million tonnes hauled distances varying from 63km to 69km. The estimated value of the contract is about US$273 million. Eddie Chin said, “The signing of this contract is a monumental step in the development of the Tabang mine. The ability to use BIS’s unique coal haulage trucks to transport coal from our mine to our port facilities will allow us to rapidly expand this project.” Bayan Resources is an Indonesia-based integrated coal mining company. It is engaged in the business of surface open cut mining of thermal coal. The company also produces other grades of coal which comprise of environmentally friendly, low sulphur, sub-bituminous coal and semi-soft coking coal. Through various companies, it has the exclusive rights to mine under five coal contracts of work and 13 mining business permits over a total concession area of 143,584 hectares. It expects coal output of between 13 million and 14 million tonnes in the 2014 financial year and expects revenue in the same period of up to US$1 billion, down from US$1.15 billion in the 2013 FY.

Bayan menandatangani kontrak-kontrak Tabang PT Indonesia Pratama (IP) sebuah anak perusahaan PT Bayan Resources telah menandatangani perjanjian jasa-jasa pertambangan dan rental dengan PT Petrosea Tbk menyangkut proyek batubara Tabang di Kalimantan Timur. Kontrak ini berlanjut selama tujuh tahun dengan kerja-kerja dimulai dalam kwartal akhir 2014. Perjanjjian kerja melingkupi pembuangan sampah tambang, pengangkutan batubara dari tambang ke sarana penghancuran dan/atau memindahkan tumpukan stok serta rental ala-alat berat. Jumlah keseluruhan kontrak ialah 71,9 juta kubik meter sampah tambang dan 65,5 juta ton batubara. Dirut Bayan Eddie Chin berkata, “Kami sangat gembira menandatangani kontrak-kontrak ini dengan Petrosea salah satu mitra jangka panjang Grup Bayan. Kontrak ini akan memperkenalkan penggunaan operasi traktor dorong besar-besaran untuk sampah tambang pertama di Indonesia. “Tabang adalah sumber batubara kelas dunia dan dengan menggunakan teknologi-teknologi seperti ini, kami percaya Tabang akan menempati kwartal produksi termurah di Indonesia.” Dirut Petrosea Rick Ness pula berkata, “Kami bergembira diberikan proyek ini.Grup Bayan Resources adalah langganan kami yang tertua dan ini menjadi tanda penerusan hubungan panjang tersebut. Petrosea telah memberikan jasa-jasa kepada Bayan Resources Group selama 15 tahun dan perjanjian-perjanjian ini melanjutkan jasa-jasa pertambangan kami sampai memasuki dekade yang akan datang. Perjanjian-perjanjian ini menyusuli sebuah lagi yang ditandatangani den-

gan IP bulan Mei dengan PT BIS Industries untuk mengadakan jasa pengangkutan produk dari tambang Tabang, yang berada dalam tahap-tahap akhir proses perkembangannya. Kontrak BIS mencakup tujuh tahun untuk jumlah volume 64 juta ton dengan jarak pengangkutan antara 63 sampai 69 km. Nilai kontrak ini adalah lebih kurang US$273 juta. Eddie Chin mengatakan, “Penandatanganan kontrak ini adalah langkah raksasa dalam pengembangan tambang Tabang. Penggunaan truk-truk pengangkutan unik BIS untuk mengangkut batubara dari tambang kami ke sarana pelabuhan akan mengizinkan kami mengembangkan proyek ini dengan cepat.” Bayan Resources adalah sebuah perusahaan pertambangan batubara terintegrasi berkedudukan di Indonesia. Ia melaksanakan pertambangan batubara panas muka bumi (open cut). Perusahaan ini juga menghasilkan kadar batubara lainnya yang mesra lingkungan, sulphur rendah, batubara sub-bituminous dan semi-lunak batubara ampas. Melalui berbagai perusahaan, is mempunyai hak-hak eksklusif untuk menambang dibawah kontrak-kontrak kerja batubara dan 13 izin kerja prtambangan dengan luas konsensi total sebesar 143.584 hektar. Ia mengharapkan penjualan batubara sebesar 13 sampai 14 juta ton pada tahun finansial 2014 dan pendapatan dalam periode yang sama mencapai US$1 milyar, sedikit lebih rendah dari US$1,15 Milyar pada tahun fiscal 2013. October 2014 l Coal Age Indonesia l 11

Indonesia

Funding for ongoing PAR production SOUTH East Asia Resources has secured through its wholly-owned Singapore subsidiary South East Asia Energy Resources Pte Ltd (SEAER) US$1 million funding for continued production at the PT PAR Coking Coal Project in East Kalimantan and development of the company’s other pipeline projects. An agreement was reached in early July with Wide Bay Ltd to provide the funding on an interest free basis. In consideration Wide Bay will be entitled to 50% of the net profit of coal produced and sold from PT PAR-BBA. The funding amount

will be repayable within 26 weeks from the first tranche drawdown or alternatively the funding amount or part thereof can be converted to new ordinary shares. The PT PAR area of the PAR BBA mine has secured IUP Production Licensing and has all required infrastructure in place for immediate production, including camp, mining equipment, haul road and processing crush facilities. The hauling road distance from the boundary of the PT PAR concession is 32km to the jetty facility at Telen, which has a port weight bridge and belt loading

Coal shipments were scheduled to take place from the PT BAR project during August. Pengiriman batubara dari proyek PT BAR direncanakan dalam bulan Agustus.

conveyor capacity of 1000 tonnes per hour. Loading of coal onto export coal vessels is estimated to take 10 hours. The company has, through its Indonesian mining entity PT UMES, taken over the mining contractor, mining equipment and workforce, and is currently undertaking all mining and civil works. It has also completed preliminary agreements for the adjoining coal concession, which will provide continued production on completion of mining from PT PAR. An initial domestic coal offtake arrangement has been finalized with steel mills, for the supply of this coking coal, which will be barged from the port of Telen. Although a wet weather period reduced production and created some issues on the main access road with new truck bridge construction being required, PT UMES scheduled coal shipments to take place during August, following the Ramadan period in July. This was achieved by taking production operations from 2 to 3 shifts per day and running in interim on a 7-day program. The company has also commenced negotiations with major offtake companies for export supply beyond the domestic supply chain. The US$1 million in funding followed a placement completed in May for proceeds of Aus$500,000. In addition, in relation to a Bond Subscription Agreement with PA Broad Opportunity IV Limited, the company lodged the notice of request for the second tranche drawdown of $500,000. Coal production commenced at PT PAR with a fleet of Cat and Doosan excavators, Cat dozers, dump trucks and support equipment mobilized in pits 1 and 2.

Pendanaan untuk kelanjutan produksi PAR SOUTH East Asia Resources telah mendapatkan dana dari anak perusahaannya South East Asia Energy Resources Pte Ltd (SEAER) sebesar AS$1 juta bagi meneruskan produksi proyek batubara tepung PT PAR di Kalimantan Timur dan pengembangan proyek-proyek perusahaan yang telah direncanakan. Perjanjian telah dicapai dengan Wide Bay Ltd untuk menyediakan dana tanpa bunga. Untuk ini Wide Bay akan mendapatkan 50% dari keuntungan bersih batubara yang diprodusir dan dijual oleh PT PAR-BBA. Jumlah dana ini harus dibayar kembali dalam masa 26 minggu dari penarikan pertama atau sebagai alternatif, jumlah dana atau sebagian daripadanya dapat ditukar ke saham biasa yang baru. Kawasan PT PAR di tambang PAR BBA telah mendapatkan Izin Produksi IUP dan telah mempunyai semua infrastruktur yang diperlukan untuk segera produksi, termasuk perkemahan, 12 l Coal Age Indonesia l October 2014

alat pertambangan, jalan pengangkutan dan sarana penghancuran batubara. Jarak pengangkutan dari perbatasan konsesi PT PAR ke sarana jeti di Telen ialah 32 km, dimana ada jembatan timbang dan konveyor pengisian dengan kapasitas 1000 ton per jam. Pengisian batubara ke kapal ekspor diperkirakan makan waktku 10 jam. Melalui anak perusahaan pertambangannya PT UMES, ia telah mengambil alih kontraktor penambangan, alat pertambangan dan pekerja, dan pada waktu ini sedang mengerjakan semua kerja-kerja pertambangan dan sipil. Ia telah pula menyelesaikan perundingan awalnya untuk konsesi di kawasan sebelahnya, yang akan meneruskan produksi setelah selesai penambangan PT PAR. Perjanjian penjualan domestik permulaan telah diselesaikan dengan pabrik-pabrik besi baja untuk penyediaan batubara tepung, yang akan dikirim melalui tongkang dari pelabuahan Telen. Walaupun hujan lebat telah mengurangkan pro-

duksi dan merusak jalan pengangkutan utama yang memerlukan pembangunan jembatan truk baru, PT UMES telah merencanakan pengapalan batubara dalam bulan Agustus setelah masa Ramadan di bulan Juli. Ini berhasil dikerjakan dengan operasi 2 sampai 3 sif per hari dan untuk sementara melalui program 7-hari seminggu. Perusahaan telah juga memulai negosiasi dengan perusahaan-perusahaan pembeli utama untuk penyediaan ekspor diluar rantai penyediaan domestik. Dana US$1 juta tersebut adalah menyusul permintaan pada bulan Mei untuk Aus$500.000. Disamping itu, mengenai hal Perjanjian pelangganan Bond dengan PA Broad Opportunity IV Limited, perusahaan memasukkan permintaan pengambilan uang yang kedua sebesar $500.000. Produksi batubara di PT PAR bermula dengan armada mesin penggalian Cat dan Doosan, bulldozer Cat, truk-truk longgok/buang dan alat-alat bantu yang dimobilisir di lubang tambang 1 dan 2.

Indonesia

Jatenergy accesses fresh Jongkang coal EXCAVATORS have provided access to fresh coal deposits at Jatenergy’s Jongkang project, allowing the company to provide immediate product to barge. The coal was identified through borehole drilling and the work was made possible after the company received loan funds providing extra capital for mine mobilization. The excavators arrived on site in June and initially undertook road levelling work to provide better and safer access to the mine site. Work then began on coal previously located and marked for excavation. Jatenergy’s chief operation officer for Indonesia, Chris Flanagan, said, “Having only 1 metre of overburden to remove, it is easy access coal.” Using the opportunity of seasonally dry weather, Jatenergy and its local partner were able to start immediately on the mine site. This weather allowed operators to pump and drain the existing mine pit to access the previously identified coal. The Jongkang I and Jongkang II projects are in production and produced around 35,000 tonnes over the past year. Located in East Kalimantan, about 5km along an existing haul road from the Mahakam River, and about 25km from a major hub of Indonesia’s coal industry at Samarinda, each concession is covered by a production licence comprising 100 hectares. Transport infrastructure is capable of handling a maximum of 20,000 tonnes per month, subject to weather conditions. The latest reworking of the Jongkang mine site has been made possible by a loan from a Jatenergy substantial shareholder, Adam Hajek. This is a profit share agreement earning 50% of Jatenergy’s residual share of the profit from the mine for the life of the mine. There is no interest payable on the loan and the only return to Adam Hajek is his share of the profit for the remaining life of the mine. Repayment of the loan either in full or part does not affect the profit share distribution. At Jatenergy’s sole discretion the loan can be repaid through the issue of fully paid ordinary shares at an issue price of two cents.

Stockpiled coal at Jatenergy’s Jongkang coal project in East Kalimantan. Simpanan batubara di proyek batubara Jatenergy Jongkang di Kalimantan Timur. Jatenergy can elect to repay the loan at any time in part or in full during the life of the operation of the mine. The profitability of the mine will be determined by Jatenergy in its sole discretion. Chris Flanagan said, “As coal prices have at least stabilized it has enabled us to restart exploitation with an economic stripping ratio. Due to its high calorific value and low ash and sulphur, the coal has always found ready buyers wishing to either sweeten cargoes or export directly by barge to neighbouring countries. We will continue to work with our local partner in further drilling the site to map out future opportunities in the area.”

Jatenergy mengakses batubara baru Jongkang TAMBANG Mesin-mesin penggali telah memberi akses ke batubara baru di proyek Jongkang nya Jatenergy, yang memungkinkan perusahaan menyediakan produk langsung ke tongkang. Batubara ini diketahui melalui pemboran lubang tambang dan kerja ini dimungkinkan setelah perusahaan menerima dana pinjaman yang memberikan modal untuk memobilisasi tambang. Mesin-mesin penggali tiba ditempat pada awal Juni dan pada mulanya digunakan untuk mengerjakan pendataran jalan bagi memberikan akses yang lebih baik dan aman ke dalam kawasan tambang. Seterusnya mengerjakan batubara yang telah diketahui lokasinya dan telah ditandai untuk digali. Pegawai Ketua Operasi Jatenergy untuk Indonesia, Chris Flanagan, berkata “Dengan hanya 1 meter tanah diatasnya yang harus dibuang, ini adalah batubara yang dapat diakses dengan mudah sekali.” Kebetulan dengan cuaca kering, Jatenergy dan mitra lokalnya dapat memulai kerja dengan segera. Dengan cuaca demikian para operator dapat memompa dan mengeringkan lubang tambang yang ada untuk mengakses batubara yang sudah diketahui sebelumnya. Proyek-proyek Jongkang I dan Jongkang II sedang aktif dan telah memprodusir lebih kurang 35.000 ton setahun belakangan ini. Berada di Kalimantan Timur, lebih kurang 5 km dijalan yang sudah ada dari Sungai Mahakam, dan lebih kurang 25 km dari pusat industri batubara Indonesia di Samarinda, setiap konsesi mempunyai izin produksi sebesar 100 hektar. Infrastruktur pengangkutan mampu menangani 20.000 ton per bulan tergantung kondisi cuaca. Pengerjaan kembali tambang Jongkang telah dimungkinkan dengan pinjaman dana dari salah seorang pemegang saham besar Jatenergy, Adam Hajek. Ini adalah perjanjian bagi keuntungan mendapatkan 50% dari sisa keuntungan dari tambang untuk seumur hidup tambang tersebut. Pinjaman ini tidak

memungut bunga dan Adam Hajek hanya mendapatkan bagian dari keuntungan sepanjang umur tambang. Pembayaran kembali pinjaman apakah secara penuh atau sebagian tidak mengganggu pembagian keuntungan. Melalui keputusan Jatenergy sendiri pinjaman tersebut dapat dibayar kembali melalui pengeluaran saham biasa dengan harga dua sen. Jatenergy dapat membayar kembali pinjaman bilamana saja, apakah sepenuhnya atau sebagian selama tambang beroperasi. Keberuntungan tambang akan ditentukan oleh Jatenergy sepenuhnya. Chris Flanagan mengatakan, “Dengan harga batubara paling sedikit telah stabil kami dapat memulai kembali eksploitasi menggunakan perbandingan hasil pertambangan yang ekonomis. Dikarenakan nilai kalorifiknya yang tinggi dan kadar abu dan sulfur yang rendah, batubara kami ini terus mendapat pembeli yang ingin mengisi kargonya atau mengekspor langsung dengan tongkang ke negara-negara tetangga. Kami akan terus bekerja sama dengan mitra lokal kami menggali kawasan ini bagi memetakan kemunginan-kemungkinan di kawasan ini.” October 2014 l Coal Age Indonesia l 13

Indonesia

Agritrade to boost output and sales

A coal stockpile at Agritrade Resources’ SEM project in Central Kalimantan. Tumpukan batubara di proyek SEM Agritrade Resources di Kalimantan Tengah. AGRITRADE Resources aims to raise output and sales by 30% despite slowing Chinese coal consumption. Agritrade believes it will achieve this owing to increased Chinese demand for less polluting coal which it produces at the PT Senamas Energindo Mineral (SEM) operations in Central Kalimantan. Agritrade’s chief executive Ng Xin-wei says the Hong Kong-listed company plans to mine and sell 4.5 million to 5 million tonnes during this financial year to March, up from 3.8 million tonnes and 2.8 million tonnes in the past two financial years. He said, “Indonesia is close to India and China, and its coal production cost is among the lowest in the world as 99% of its output is from surface mining. It is cheaper to import seaborne coal into south China than from north China via the railways.” Coal powers about 75% of the national grid in China. Electricity output growth slowed to 4.7% in 2012, 7.6% last year and 5.7% in the first half of 2014, compared to growth of 12% to 13% in 2010

and 2011. China last year imported 57.6 million tonnes of brown coal - with a relatively low heating value from Indonesia, up from 50 million tonnes in 2012 and 35.7 million tonnes in 2011. Despite the lower heating value, most of the coal imported from Indonesia is blended with domestic coal to reduce pollutants. Agritrade is controlled by companies owned by the Ng family’s Agritrade International and Singaporean businessman Rashid Maidin’s WSJ International Group. Both companies are commodities trading and logistics firms. Agritrade Resources is the owner and operator of PT SEM, a 2000-hectare coal mine in Indonesia and one of the few Indonesian coal mining companies listed on the Hong Kong Stock Exchange. The company produces its own brand of SEM coal, a sub-bituminous, low-sulphur, low-pollutant thermal coal with calorific value (as received basis) of 3800 kcal/kg in its raw form.

Together with its subsidiaries, Agritrade provides integrated supply chain solutions from pit to port, including coal origination, processing and logistics services. The company applies the use of coal upgrading technology, GEO-COAL, to process and produce higher quality, more efficient and cleaner burning coal. Agritrade aspires to be a top-tier international quality coal producer, and is committed to meeting today’s market demands and the highest environmental standards in its operations. It posted a net profit of HK$115.2 million in the year to March, more than double the profit of HK$53.5 million in the previous year. Gross profit margin grew to 31.8% from 29.4%. Average selling price of about HK$242 per tonne was steady from HK$243 in the previous year, given the weak global coal market which saw big price falls of coal produced in nations which are located farther from major markets.

Agritrade meningkatkan produksi dan penjualan AGRITRADE Resources bercadang meningkatkan produksi dan penjualan sebesar 30% walaupun penggunaan batubara Cina berkurang. Agritrade percaya dapat mencapai tujuannya karena meningkatnya permintaan Cina untuk batubara yang kurang menimbulkan pencemaran udara yang mereka hasilkan di operasi PT Senamas Energindo Mineral (SEM) di Kalimantan Tengah. Dirut Agritrade Ng Xin-wei mengatakan bahwa perusahaan terdaftar di Hong Kong ini merencanakan penambangan dan penjualah 4.5 sampai 5 juta ton selama tahun finansial ini sampai Maret, meningkat dari 3,8 juta ton dan 2,8 ton selama dua tahun finansial terakhir ini. Ia mengatakan,”Indonesia berada dekat dengan India dan Cina, dan biaya produksi batubaranya adalah salah satu terendah didunia karena 99% dari penambangannya ialah dipermukaan. Juga lebih murah mengimpor batubara melalui kapal laut ketimbang dari Utara cina dengan kereta api.” 75% dari jaringan listrik Cina dibangkitkan menggunakan batubara. Perkembangan pengeluaran tenaga listrik menurun ke 4,7% pada tahun 2012, 7,6% tahun lalu dan 5,7% pada pertengahan pertama 2014, disbanding dengan perkembangan 14 l Coal Age Indonesia l October 2014

yang 12% sampai 13% ditahun-tahun 2010 dan 2011. Tahun lalu Cina mengimpor 57,6 juta ton batubara cokelat – dengan daya panas yang rendah – dari Indonesia, naik dari 50 juta ton di tahun 2012 dan 35,7 juta ton pada tahun 2011. Kebanyakan dari batubara yang diimpor dari Indonesia dicampur dengan batubara domestik untuk mengurangkanunsur-unsur polusi. Agritrade dikendali oleh perusahaan-perusahaan dimilikioleh Agritrade International nya keluarga Ng dan perusahaan pengusaha Singapur Rashid Maidin WSJ International Group. Keduadua perusahaan memperdagankan komoditas dan adalah perusahaan logistik. Agritrade Resources adalah pemilik dan pelaksana PT SEM, sebuah tambang batubara seluas 2000 hektar di Indonesia dan salah satu dari perusahaan tambang batubara Indonesia yang didaftar di Bursa Hong Kong. Perusahaan mengeluarkan cap dagang SEMnya sendiri, yaitu batubara sub-aspal hangat, sulfur rendah, unsur polusi rendah dengan nilai kalorifis (saat diterima) 3800 kcal/kg dalam bentuk mentahnya.

Bersama dengan anak-anak perusahaanya, Agritrade menyediakan solusi rantai suplai dari lubang ke pelabuahan, temasuk originasi batubara, peprosesan dan jasa-jasa logistis. Perusahaan menggunakan teknologi peningkatakan batubara, GEO-COAL, bagi memproses and memproduksikan batubara bermutu yang lebih efisien dan membakar secara lebih bersih. Agritrade bercita-cita menjadi pengeluar tahap tingi batubara bermutu, dan berkomitmen memenuhi keperluan-keperluan pasar dan beroperasi menggunakan standard lingkungan yang tertinggi. Ia mengumumkan keuntungan bersih sejumlah HK$115,2 juta per tahun sampai Maret, lebih dari dua kali lipat keuntungan HK$53,5 juta pada tahun sebelumnya. Garis keuntungan kotor naik ke 31,8% dari 29,4%. Harga penjualan rata-rata pada lebih kurang HK$242 per ton tidak beranjak dari HK$243 pada tahun sebelumnya, sedangkan pasaran batubara dunia melemah dan harga anjlok dahsyat untuk batubara yang dikeluarkan di negara-negara yang terletak jauh dari pasar-pasar besar.

Indonesia

Mitrabara plans North Kalimantan port COAL miner PT Mitrabara Adiperdana aims to use a large amount of the Rp319.09 billion raised from its initial public offering (IPO) in July to support its plan to build a port at Malinau in North Kalimantan. The company aims to start work on the port by the end of the year to support its plan to enhance its production and to support its long-term business. Mitrabara gained the funds by releasing 245 million shares, or 20% of the company’s enlarged capital, in the IPO. The company made its stock market debut on Thursday, July 10, with the shares closing on the day at Rp1300, the same price as the IPO. They rose more than 10% at the market’s opening bell to Rp1330 each, but then fell down again by the close. The company’s president director Khoirudin said about 58.5% of the proceeds would be used to develop its subsidiary and support the company’s plan to build a port. The remaining 35% and 6.5% would be allocated for the company’s working capital and capital expenditure. He said, “We have estimated that, to build supporting infrastructure for our business, we might need US$40 million. “The infrastructure includes a 65km road that we have already built.” Mitrabara is the first Indonesian coal miner to pursue an IPO in the last two years. It decided to go public this year, although prices of coal have not yet improved, because it believed that coal prices and demand would rise in a year or two. Khoirudin said listing this year mean the company could fund expansion to cater for the expected improvement. “Coal is a highly needed commodity. Although its price has been plunging sharply lately, it might also pick up significantly in the future. We are upbeat to list our shares now in the stock market to secure necessary funds for our business expansion.” Mitrabara aims to produce 2.5 million tonnes of coal this year, 38.8% more than the 1.8 million tonnes produced last year. It aims to produce 4 million tonnes of coal in 2016. The company exports all of its production, with Japanese energy company Idemitsu Kosan as its main client. Last year Idemitsu absorbed 37.76% of Mitrabara’s production followed by Dutch coal trader Trafigura Beheer BV with 30.06%. Following the IPO Idemitsu, which acted as a standby buyer, announced that it had acquired a 12% stake in Mitrabaram, which is majority owned by Indonesian tycoon Athanasius Tossin Suharya and PT Baramulti Sugih Sentosa, the parent of listed Indonesian coal producer Baramulti Suksessarana.

PT Mitrabara Adiperdana officials at the launch of the company’s initial public offering. Petinggi-petinggi PT Mitrabara Adiperdana sewaktu pelancaran penawaran umum pertama awal tahun ini.

Mitrabara merencanakan pelabuhan di Kalimantan Utara PENAMBANG batubara PT Mitrabara Adiperdana bertujuan menggunakan sebagian besar dari Rp 319,09 milyar yang didapati dari penawaran umum pertamanya (IPO) pada bulan Juli bagi mendukung rencananya membangun sebuah pelabuhan di Mainau di Kalimantan Utara. Perusahaan bertujuan mulai kerja pembangunan pelabuhan itu pada akhir tahun untuk mendukung pengluasan produksi dan mendukung usaha jangka panjangnya. Mitrabara mendapatkan dana tersebut dengan mengeluarkan 245 juta saham, atau 20% dari modal persahaan yang sudah di perbesar di IPO. Perusahaan memulai pasaran sahamnya pada hari Kemis, tanggal 10 Juli, dengan harga saham ditutup untuk hari tersebut sebesar Rp1300, harga yang sama dengan sewaktu IPO. Ia naik lebih dari 10% ke Rp1330 per saham, tapi jatuh kembali sewaktu penutupan. Dirut perusahaan Khoirudin berkata bahwa 58,5% dari hasil akan digunakan bagi mengembangkan anak perusahaannya dan mendukung rencana perusahaan untuk membangun sebuah pelabuhan. Selebihnya 35% dan 6,5% akan digunakan untuk modal kerja perusahaan dan perbelanjaan modal. Katanya.” Kita telah menaksir pembangunan infrastruktur usaha kami, kita memerlukan US$40 juta. Infrastruktur ini termasuk jalan sepanjang 65 km yang telah kami bangun.” Mitrabara adalah penambang batubara Indonesia pertama yang mengikuti IPO dalam dua

tahun belakangan ini. Ia memutuskan untuk membuka ke umum tahun ini, walaupun harga batubara belum lagi membaik, karena ia berpendapat bahwa harga batubara akan naik dalam setahun dua ini. Khoirudinmengatakan bahwa berdaftar thun ini berarti perusahaan dapat mendanai pengluasan yang diperlukan untuk peningkatan tersebut. “Batubara adalah komoditas yang sangat diperlukan. Walaupun harganya telah anjlok secar dahsyat belakangan ini, ia juga dapat naik kembali ecara signifikan pada masa depan. “Kami berani mendaftarkan saham-saham kami sekarang di bursa bagi mendapatkan dana yang diperlukan untuk perluasan usaha kami.” Mitrabara bertujuan memprodusir 2,5 juta ton batubara tahun ini, 38,8% melebihi 1,8 juta ton yang diprodusir tahun lalu. Ia berkeinginan memprodusir 4 juta ton batubara di tahun 2016. Perusahan mengekspor keseluruhan hasil produksinya, dengan perusahaan tenaga Jepang Idemitsu Kosan sebagai pembeli utamanya. Tahun lalu Idemitsu mengambil 37,76% dari produksi Mitrabara disusuli oleh pedagang batubara Belanda Trafigura Beheer BV dengan 30,06%. Setelah IPO Idetmisu, yang beraksi sebagai pembeli ‘standby’, menyatakan bahwa ia telah mempunyai 12% di Mitrabara, yang mayoritasnya dimiliki oleh tycoon Indonesia Athanasius Tossin Suharya dan PT Baramulti Sugih sentosa, sebuah perusahaan empunya penghasil batubara Indonesia terdaftar Baramulti Suksessarana. October 2014 l Coal Age Indonesia l 15

Indonesia

First Waratah thermal coal sales WARATAH Resources’ Commodities Trading Division has sold a 55,000 tonne trial cargo of thermal coal from South Kalimantan to an international coal trading company. It was the first transaction where Waratah Resources has owned and on-sold the cargo. The commodities division has a focus on developing Australian and international assets and its current mission is to supply thermal and coking coal from exclusive Indonesian mining partners to end user customers in China, India and Korea with a particular focus on long term off-take agreements. The cargo was expected to be dispatched in late August and followed the first 50,000 tonne export of thermal coal from South Kalimantan to Shanghai, China, in early May when Waratah’s commodities division assisted in facilitation of the transaction. Waratah has over the last nine months developed a good relationship with its Indonesian partner concerning the supply of quality thermal coal from a long-term producing mine. Subject to the success of the August trial cargo and further negotiations with the buyer, the company anticipates this trial being a precursor to a series of further revenue generating transactions potentially leading to a longer term supply agreement. Waratah’s executive chairman Ben Kirkpatrick says, “This is another significant step forward in the development of Waratah’s Commodities Trading Division.” At the time of the May shipment Waratah said it represented first confirmation of the company’s strengthening commercial relationships with

Waratah Resources’ maiden cargo being loaded offshore from barge to mother vessel in South Kalimantan. Kargo pertama Waratah Resources sedang dimuat lepas pantai dari tongkang ke kapal induk di Kalimantan Selatan Indonesian partners, Indonesian coal producers and end users throughout Asia. Potential further customer relationships are also being developed in Taiwan, India and South Korea. Ben Kirkpatrick said at the time, “This shipment is a pivotal milestone for the company in the ongoing development of its Commodities Trading Division. We are building our know-how, staff and presence in commodities trading and are well positioned to develop and scale up this business in a profitable manner within appropriate risk management protocols. We anticipate executing more commodities transactions throughout 2014 and are targeting the establishment of a steady revenue stream from commodities trading and related activities.”

Waratah’s Indonesian partners have vast experience in the Indonesian coal industry gathered over 25 years. The partners have long standing relationships with large independently owned coal mines that have operated for many years. The company in June announced that it had received a refund of Aus$497,947, including interest of Aus$538, under the Australian Federal Government’s Research and Development Tax Incentive Scheme. Under the scheme Waratah was entitled to a cash refund of 45 cents per dollar spent on eligible R&D expenditure. Waratah is also exploring at two iron ore projects in Africa - one in Gabon and the other in the Republic of Congo.

Penjualan pertama batubara Waratah DIVISI Perdagangan Komoditas Waratah Resources telah menjual 55.000 ton kargo percobaan batubara dari Kalimantan Selatan ke perusahan dagang batubara intenasional. Ini adalah transaksi pertama dimana Waratah Resources telah memiliki dan menerusjualkan kargo itu. Divisi komoditas menumpukan perhatiannya pada pengembangan aset-aset Australia dan internasional dan misinya pada waktu ini ialah menyediakan batubara panas dan serbuk dari mitra-mitra eksklusif Indonesianya kepada langganan-langganan pengguna akhirnya di Cina, India dan Korea, terutama berfokus pada perjanjian-perjanjian penjualan jangka panjang. Kargo tersebut direncanakan dikirim akhir Agustus menyusul ekspor pertama 50.000 ton batubara panas dari Kalimantan Selatan ke Shanghai, Cina, pada awal Mei ketika divisi komoditas Waratah membantu memfasilitas transaksinya. Waratah selama sembilan bulan belakangan ini telah mengembangkan hubungan baik dengan mitra Indonesianya mengenai persediaan batubara panas bermutu dari tambang yang telah berproduksi jangka panjang. 16 l Coal Age Indonesia l October 2014

Tergantung pada suksesnya percobaan kargo Agustus ini dan perundingan-perundingan lanjut dengan pembeli, perusahaan berharap percobaan ini menjadi ujung-tombak transaksi-transaksi menguntungkan selanjutnya menuju pada perjanjian penyediaan jangka panjang. Ketua Komisaris Waratah Ben Kirkpatrick mengatakan,”Ini adalah satu lagi langkah berarti bagi pengembangan Divisi Perdagangan Komoditas Waratah.” Pada waktu pengiriman bulan Mei Waratah mengatakan bahwa ia adalah merupakan pengesahan pertama penguatan hubungan komersil dengan mitra-mitra Indonesianya, para penghasil batubara dan para pengguna diseluruh Asia. Kemungkinan hubungan pelanggan selanjutnya sedang dikembangkan di Taiwan, India dan Korea Selatan. Pada waktu itu Ben Kirkpatrick berkata, “Pengiriman ini adalah tanda penting bagi perusahaan dalam pengembangan Divisi Perdagangan Komoditas. Kami sedang membangun ketrampilan kami, staf dan kehadiran dalam perdagangan komoditas dan berada ditempat yang baik untuk mengembangkan dan meningkatkan usaha ini

secara menguntungkan dalam batas-batas protocol manajemen risiko. Kami merencanakan untuk melaksanakan lebih banyak lagi transaksi-transaksi komoditas dalam tahun 2014 yang menjuru pada pemasokkan pendapatan yang teratur dari perdagann komoditas dan aktivitas-aktivitas tersangkut.” Mitra-mitra Indonesianya mempunyai pengalaman industri batubara yang di kumpulkan selama 25 tahun sebelumnya. Mitra-mitra mempunyai hubungan-hubungan lama dengan tambang-tambang batubara yang dimiliki sendiri yang sudah beroperasi bertahun-tahun. Perusahaan mengumumkan pada bulan Juni bahwa ia telah menerima pemulangan kembali Aus$497.947,00 termasuk bunga sejumlah Aus$538, dibawah Program Insentif Pajak Penelitian dan Pengembangan pemerintah federal Australia. Dalam Program ini Waratah berhak menerima pemulangann kembali uang tunai sebanyak 45 sen per dollar yang digunakan sebagai biaya R&D. Waratah juga sedang meneliti kemungkinan pada dua proyek bijih besi di Afrika - satu di Gabon dan yang lainnya di Republik Kongo.

Indonesia

Altura focus on higher calorific coal DURING the current soft coal market Altura Resources aims to maintain a consistent production profile at the Delta operations in East Kalimantan and maximize inventory sales by increasing production of its higher calorific reserves. It is intended to maintain Delta’s overall annual production levels at 1.5 million tonnes for the remainder of 2014. Delta was operating four pits in the first half of the year and aimed to increase that to five pits during the third quarter. Out of these pits a minimum of three will be producing higher calorie coals. Production in the three months to June 30 was lower than the previous quarter with monthly average production of 95,452 tonnes compared to the March quarter average of 118,069 tonnes. Production in June quarter was 11% above the corresponding quarter in 2013. Contractor productivity remained below plan with contributing factors being higher than expected rainfall and alterations to the mine plan in order to reduce stripping costs. The variation to the mine plan necessitated changes to the mining fleet allocations in each of the There are two defined resource areas at Delta coal project, with Gunung Lampu in four active pits. The changes were focused on increasing the east and the Noni area in the west. Both are serviced by a network of roads to production of higher price yielding coals and reduction the centrally located processing plant. of waste haulage distances. In the June quarter the Delta operations experienced Proyek batubara Delta mempunyai dua sumber yang sudah dikenal, Gunung Lampu 53 rainfall affected days for a total of 913mm which is disebelah timur dan kawasan Noni disebelah barat. Kedua-duanya dihubngi dengan well above the overall March quarter total rainfall when jaringan jalan-jalan ke pabrik pemerosesan yang berada ditengah-tengah. there were 49 rainfall affected days for 566mm. The June quarter average coal price of US$43.35 per tonne was lower than the US$44.82 average price for the The company also has a 70% stake in the Tabalong project in South Kaliprevious quarter. Sales for June quarter totalled 294,228 tonnes compared to mantan. During the June quarter the focus remained on securing the Pinjam the March quarter of 321,873 tonnes. The coal market continues to remain Pakai (forestry lend/use permit) for the most northern tenement of Suryaraya soft with pressure on price and competition for medium grade thermal coal Permata Khatulistiwa which is intended to be the initial mining area. such as Delta’s typical specification. Altura’s consultants have continued to submit additional information to the Altura moved to producer status in 2013 with completion of the purchase Ministry of Forestry to support the application and the company has appointof a 33% stake in PT Delta Ultima Coal at a cost of US$25 million. The mine ed two experienced forestry consultants to assist in guiding this complex is on a 1260 hectare IUP in the Mahakam River Delta, in proximity to the process. Altura has been buoyed by recently issued similar permits to other centres of Balikpapan and Samarinda. mining companies in different provinces.

Altura menumpukan perhatian pada batubara berkalori tinggi DALAM suasana pasaran batubara yang lemah ini Altura Resoures berhasrat mempertahankan profil produksi yang konsisten di operasi Delta di Kalimantan Timur dan memaksimumkan penjualan dari inventaris dengan meningkatkan produksi cadangan kalorifik tingginya. Ia bertujuan mempertahankan jumlah produksinya pada 1,5 juta ton untuk sisa tahun 2014. Delta mengoperasikan empat lubang tambang selama setengah tahun pertama dan merencanakan untuk meningkatkan ini ke lima lubang pada kwartal ketiga. Tiga dari lubang-lubang tambang ini akan memproduksikan batubarabatubara berkalori tinggi Produksi selama tiga bulan sampai 30 Juni yang berada pada 95.452 ton adalah kurang dari kwartal sebelumnya yang memproduksikan 118.069 ton rata-rata per bulan pada kwartal Maret. Produksi pada kwartal Juni adalah 11% melebihi kwartal sama di tahun 2013. Produktivitas kontraktor tetap kurang dari yang direncanakan karena hujan yang melebihi perkiraan dan perubahan-perubahan perencanaan tambang untuk mengurangkan biaya-biaya pembersihan kotoran dari batubara yang ingin ditambang. Perubahan-perubahan rencana penambangan merubah pula alokasi-alokasi armada peralatan di keempat lubang tambang yang aktif tersebut. Didalam kwartal Juni operasi Delta mengalami 53 hari hujan yang secara keseluruhan berjumlah 913mm dan melebihi jumlah keseluruhan kwartal

Maret dengan 49 hari hujan dan jumlah 566 mm. Harga rata-rata batubara dalam kwartal Juni yaitu US$43,35 per ton adalah kurang dari US$44,82 dalam kwartal sebelumnya. Penjualan dalam kwartal Juni berjumlah 294.228 ton bisa dibandingkan dengan 321.873 ton dalam kwartal Maret. Pasaran batubara terus lemah dengan tekanan harga dan kompetisi bagi batubara kelas menengah seperti spesifikasi Delta. Altura meraih status produser pada tahun 2013 setelah menyelesaikan pembelian sebesar 33% saham PT Delta Ultima Coal seharga US$25 juta. Tambangnya terletak di IUP seluas 1260 hektar dimuara Sungai Mahakam dekat dengan pusat-pusat kota Balikpapan dan Samarinda. Perusahaan juga mempunyai 70% saham di proyek Tabalong di Kalimantan Selatan. Dalam kwartal Juni, penumpuan adalah pada mendapatkan izin pinjam/pakai untuk kawasan Suryaraya Permata Khatulistiwa yang dimaksudkan menjadi daerah penambangan awalnya. Konsultan-konsultan Altura terus menyerahkan informasi tambahan ke Kementerian Kehutanan untuk mendukung permohonannya dan perusahaan telah pula menunjuk dua konsultan kehutanan yang berpengalaman untuk menolongnya dalam proses yang kompleks ini. Altura merasa bersemangat dengan dikeluarkannya izin-izin yang sama kepada perusahan-perusahaan pertambangan lain di beberapa propinsi. October 2014 l Coal Age Indonesia l 17

Indonesia

Churchill pursues massive claim CHURCHILL Mining is seeking damages totalling more than US$1.315 billion from Indonesia following revocation of the mining licences that made up the East Kutai Coal Project (EKCP) in East Kalimantan. Churchill and its wholly-owned subsidiary Planet Mining held a 75% interest in EKCP. The matter is before the International Centre for Settlement of Investment Disputes (ICSID) in Washington. Churchill’s lawyers Quinn Emanuel Urquhart & Sullivan have filed a supplemental memorial on quantum and damages following the engagement of international valuation experts, FTI Consulting Canada, who prepared an independent assessment of the damages. FTI determined the damages to Churchill/Planet of almost US$1.15 billion plus pre-award interest of US$165.70 million. The next step in the proceedings is that the Republic of Indonesia is required to file its memorial of defence by November 12, 2014. “This valuation further confirms the billion dollar-plus loss that we believe was suffered by our shareholders as a result of the actions taken by the Republic of Indonesia in relation to the EKCP mining tenements. We are, accordingly, looking forward to having the merits of our case determined by the ICSID tribunal as soon as possible,” said Churchill’s chairman David Quinlivan. Indonesia’s Law and Human Rights Minister Amir Syamsuddin said that the ICSID had rejected an appeal by Churchill to stop Indonesia from presenting documentation allegedly falsified by the UK-based coal mining company at criminal court. With the rejection by the arbitration institution,

The exploration camp established by Churchill Mining at the East Kutai Coal Project. Kemah eksplorasi dibangun oleh Churchill Mining di Proyek Batubara Kutai Timur. the criminal case against Churchill’s alleged document falsification will proceed. “ICSID ruled on July 8 against the provisional measures by Churchill. The government is more confident in its position. We ask ICSID to order the plaintiff (Churchill) to provide authentic evidence (for the case),” he said. Churchill took the matter to the ICSID in 2012 after the East Kutai regency administration revoked the permits due to the alleged false documentation used to obtain them. The London-based company started its business in Indonesia in 2008, by acquiring a 75% stake in a local company called Ridlatama Group.

It previously had a mining permit for 35,000 hectares that was formerly controlled by six local firms affiliated with the PT Nusantara Group. Although Nusantara reportedly lost its mining rights in 2006 and 2007 due to a lack of mining activity, the East Kutai administration said the company still held legitimate permits and that it was Ridlatama that was working with permits obtained under false pretences, leading to the local administration revoking the licences. “We’ve been working on the case through ICSID for almost two years, but we’ve never seen any evidence provided by Churchill to support its claim,” Amir Syamsuddin said.

Churchill mengajukan tuntutan besar-besaran CHURCHILL Mining menuntut ganti rugi sebesar US$1.315 milyar dari Indonesia karena pencabutan izin-izin penambangan dari Proyek Batubara Kutai Timur (EKCP) di Kalimantan Timur. Churchill dan anak perusahaannya Planet Mining mempunyai 75% di EKCP. Hal ini sedang ditangani olehPusat Internasional Penyelesaian Percekcokan investasi (ICSID) di Washington. Ahli-ahli hukum Churchill, Quinn Emmanuel Urquhart & Sullivan telah mengajukan peringatan tambahan mengenai jumlah dan tuntutan setelah menggunakan pakar valuasi internasional, FTI Consulting Canada, yang telah menyiapkan penilaian independen mengenai hal tuntutan. FTI memperkirakan tuntutan kerusakan ditanggung Churchill/Planet mencapai US$1,15 milyar ditambah dengan jumlah bunga modal prepenyelesaian kasus sebesar US$165.70 juta. Langkah selanjutnya ialah Republik Indonesia diharuskan mengajukan jawaban pembelaanya sebelum 12 Nopember 2014. “Valuasi ini tambah menguatkan kerugian pemegang saham kami berjumlah lebih dari satu 18 l Coal Age Indonesia l October 2014

milyar dollar disebabkan tindakan Republik Indonesia dalam hal izin pertambangan EKCP. Dengan itu kami mengharapkan pengesahan kasus kami oleh tribunal ICSID selekas mungkin,” kata Ketua Komisaris Churchill David Quinvilan. Menteri Hukum dan Hak Azasi Manusia Indonesia Amir Syamsuddin berkata bahwa ICSID telah menolak apel Churchill menghentikan Indonesia mempresentasikan dokumentasi yang katanya dipalsukan oleh perusahaan pertambangan batubara berkedudukan di UK itu, dihadapan mahkamah kriminal. Dengan penolakan tersebut, kasus kriminal mengenai pemalsuan dokumen oleh Chrchill tersebut akan dilanjutkan. “ICSID telah menentukan pada tanggal 8 Juli terhadap langkah-langkah provisional Churchill. Pemerintah lebih yakin akan posisinya. Kami minta ICSID untuk tersangka menyediakan bukti autentik (untuk kasus ini),”katanya. Churchill membawa hal ini ke ICSID pada tahun 2012 setelah administrasi Kabupaten Kutai Timur mencabut izin-izin tersebut dikarenakan

dokumentasi palsu yang digunakan bagi mendapatkannya. Perusahaan yang berkedudukan di London itu memulai usahanya di Indonesia pada tahun 2008, dengan mendapatkan 75% saham dalam perusahaan setempat bernama Ridlatama Group. Sebelumnya ia mempunyai izin pertambangan untuk 35.000 hektar yang dikendalikan oleh enam perusahaan setempat yang berafiliasi dengan PT Nusantara Group. Walaupun Nusantara dikabarkan kehilangan hak-hak penambangannya di tahun 2006 dan 2007 karena kurangnya aktivitas pertambangannya, administrasi Kutai Timur menyatakan bahwa perusahaan tersebut masih memegang izin-izin sah dan adalah Ridlatama yang beroperasi dengan izin-izin yang didapatan dengan dalih, yang membuat admistrasi setempat mencabut izin-izin tersebut. “Kami telah mengerjakan kasus ini melalui ICSID selama hampir dua tahun, tapi kami tidak pernah melihat bukti dari Churchill bagi mendukung tuntutannya, “ kata Amir Syamsuddin.

Indonesia briefs

Coal Fe to strengthen operations COAL Fe Resources is set to strengthen its operations through acquisition of majority interests in two companies owning producing projects in West Sumatra. One of the acquisitions involves a high calorie operating anthracite coal mine in an established mining province near Padang. Both projects were introduced to Coal Fe by managing director Robert Swarbrick. The second project is an operating iron ore mine with monthly production of 30,000 tonnes. Following the appointment of Robert Swarbrick as MD in April a strategic review of the company’s assets was conducted with the end result being a focus on the acquisition of higher calorific projects aimed at commanding higher prices than the Abadi coal project held by the company. The company has recently decided to write down the full value of Abadi. The coal agreement will see Coal Fe acquire a 70% interest in PT Tunngal Putra Nusantara (TPN), sole owner of a coal concession in Palin which was formerly producing about 30,000 tonnes each month. It is about 100 hectares with production sourced from an area of 70 hectares, and is about 10km from the jetty for barging. The concession has ceased production due to TPN having insufficient working capital to maintain the ongoing running of the mine. It is close to infrastructure and has a current contract with a leading Indonesian cement factory. Coal Fe intends to resume production within six months of shareholder approval and expects the historic annual production of 300,000 tonnes will be increased to 500,000 tonnes.

Killara considers direct mining After reviewing contractor rates for the PT Borneo Emas Hitam (BEH)

project and considering that the price of thermal coal is at an equivalent low to 2009 pricing, Killara Resources is considering engaging directly in the production process. This process comes with the direct assistance of Killara’s largest shareholder the Zulkarnaen family who have operated their own coal and palm oil businesses for many years. Killara has estimated that the cost of the production phase for the direct hiring or personnel and equipment to engage in coal production directly. This is anticipated to allow a satisfactory margin of profit from the sale of coal, despite the current subdued prices. Discussions with coal traders and end-users are well progressed for the funding of the BEH project via advance coal sales agreement. Four parties have been identified and discussions are expected to be completed shortly. The company hopes this will lead to production resuming at BEH.

Positive first half for PT ITM PT Indo Tambangraya Megah (ITM) achieved a positive first half performance by booking a significant increase in net income by 41% to US$148 million from US$105 million in the same period last year. The increase mainly resulted from an effective cost management strategy in all lines of expense as well as a derivative gain on transactions. In the first half of 2014 PT ITM booked a sales volume of 13.9 million tonnes, a 1% decrease from 14 million tonnes in the same period last year. During the period it booked sales revenue of US$965 million, an 11% decrease from US$1.09 billion in the first half of 2013 due to a decrease in the average coal selling price, from US$78.4 per tonne last year to US$69.7 in the first half of 2014. The cost management strategy has managed to lift up gross profit margin

October 2014 l Coal Age Indonesia l 19

Indonesia briefs from 20% to 23% year-on-year. Likewise earnings before interest and tax rose by 6% from US$137 million to US$145 million. In the first half of 2014, PT ITM produced 14 million tonnes of coal, which was roughly in line with the company’s 2014 target of 29.5 million tonnes.

Kangaroo reduces debt position Kangaroo Resources has reduced its debt position by US$12 million following settlement of the outstanding cash component of the Pakar project transaction. This reduces Kangaroo’s debt position to approximately US$26 million. The adjustment will be applied from January 1, 2014, providing a reduction in annual interest charges of about US$850,000. The company will continue to review options to further reduce its debt position and interest costs. Kangaroo has also reached an ‘in-principle’ agreement with Bayan Resources for the shared used of the new Tabang infrastructure facilities due to be commissioned in the fourth quarter of 2014. Bayan’s Tabang mining concessions are already in commercial production and Kangaroo expects to bring its own Pakar concessions into production and commence feeding coal through the Tabang facilities within the next two years.

Realm considers Katingan Ria options Realm Resources continues efforts aimed at maximizing the value of its development ready Katingan Ria Thermal Coal Project in Central Kalimantan. The company is seeking buyers and/or strategic offtake partners for the 51%owned project. With the price of Katingan Ria 4200kcal GAR coal falling further to around US$36/tonne, the company’s strategic partner negotiations have been focused on domestic supply opportunities and specifically PLN’s proposed 200Mw power station development in the vicinity of Kasongan town. PLN is the Indonesian state-owned electricity corporation. Indonesia’s electricity demand is forecast to grow at an annual rate of about 8% to 2022 or around 60Gw of additional power supply. This will require an estimated US$125 billion in new investment. Given this significant funding requirement, the Indonesian Government is opening up the electricity sector to private and foreign investment, thereby reducing the load on PLN.

Indus examines Block 9 development Indus Coal is continuing with desktop studies to support the development of Block 9 in the Jambi coal projects as a low-cost, open-cut, truck and excavator type operation in which coal is barged to the open sea from river port, where it is transhipped for delivery to export power markets. Several groups interested in acquiring all or part of Block 9 have been progressing their due diligence programs through the dataroom. Indus has 38% of the Jambi projects which consist of three coal-bearing concessions totalling 14,394 hectares in the Central Tebo district of Tebo Regency, Jambo province, Eastern Sumatra. The current Block 9 JORC-compliant indicated and inferred resource estimation is more than 94 million tonnes across all seams and on average the coal has a 5300 GCV (adb). Expenditure incurred by Indus during the second quarter primarily included the balance of costs associated with the Production/Operation IUP on Block 9 and continued management of the Jambi projects by Indonesian coal partner PT Param Energy.

Geo Energy acquisition Geo Energy Resources has acquired a stake in a company which owns a coal concession in South Kalimantan. The company acquired a 66% stake in Borneo International Resources for US$55 million. The acquisition will increase Geo Energy’s coal reserve bank from about 11 million tonnes to more than 40 million tonnes. The newly acquired concession spans a total area of 236 hectares and the coal deposits are richer than the group’s existing concession, also in Kalimantan. 20 l Coal Age Indonesia l October 2014

Geo Energy’s executive chairman Charles Antonny Melati says the move is in line with the company’s strategy to expand its business operations and raise production levels. “With coal prices still relatively weak, we believe that this is an opportune time to push through the completion of the acquisition and increase our coal reserve bank.” Geo Energy also recently entered into a contract to provide mining services in a separate coal concession, also in South Kalimantan. The group will also purchase the coal from the concession owner.

Pan Asia raises $1.6 million Pan Asia Corporation intends to use $1.6 million raised in a 1 for 3 fully underwritten non-renounceable, pro rata rights issue to fund TCM project costs and for working capital. The issue offered more than 76 million shares with the shortfall fully underwritten by Nexus Link Limited. The company’s CEO Alan Hopkins says, “The Board was committed to offering our existing eligible shareholders an opportunity to subscribe for shares on the same basis as recent placements at $0.021 per share, especially as we start to move forward with plans for our flagship TCM high CV thermal coal project.” Pan Asia Corporation aims to be a supplier of key energy resources into the expanding Asian markets. Its flagship TCM project is in South Kalimantan.

Improved Banpu results Banpu Public Company has reported higher first half-year financial results for 2014 with its gross profit increasing 3% to US$513 million compared to the same period a year ago of US%500 million. The increase is largely due to consistent revenues from its power business, success in cost reduction and profits from coal swaps. Banpu CEO Chanin Vongkusolkit said that although total sales revenues were down 8% to US$1.549 billion from the same period the previous year, thanks to effective company management, Banpu recorded a better performance. US$1.442 billion was generated from coal sales which accounted of 93% of the total income. Coal sales from Indonesia amounted to US$981 million while the remaining US$461 million was from Australian mines. Banpu also generated US$92 million from sales of power and steam, accounting for 6% of its total revenues. A total of 22.8 million tonnes of coal from Indonesia, Australia and China was sold. The majority of coal volume sold came from Banpu’s production bases in Indonesia and Australia which represented 13.8 million tonnes and 7.1 million tonnes, respectively. When combining with revenue expansion from its power business, Banpu’s overall performance was as anticipated. This year, Banpu expects to sell approximately 48 million tonnes of coal from its mines in the three countries.

Strategic review for Challenger Deep Challenger Deep Resources Corp has initiated a process to review potential strategic alternatives for the company. The focus of the review will be on non-resource opportunities with particular emphasis on the technology sector. Challenger has also announced a non-brokered private placement to raise gross proceeds of up to $1 million. The proceeds will be used for working capital purposes and to fund the strategic review process. Challenger also announces that the previously announced Letter of Intent relating to the sale of its Indonesian subsidiary PT Bestindo Energy, has been terminated because of the purchaser’s inability to meet its financial obligations thereunder. In consequence and due to the general state of the Asian thermal coal prices and markets and the corporation's cash constraints, Challenger has completed the sale of Bestindo to an officer and director of Bestindo for nominal consideration.

Around the world

Atrum focused on trial mining at Groundhog ATRUM Coal is focused on commencement of trial mining at its Groundhog project in British Columbia, Canada, and expects delivery of first anthracite on ship by the end of the year. Atrum’s chairman James Chisholm said in the company’s most recent quarterly report: “This past quarter has been a very active and busy time for Atrum. We have been progressing with our bulk sample plans and building our operational team to deliver first anthracite on ship. “Our recent PFS demonstrated the potential for significant economic returns at Groundhog and we are now building on our experience and capability with the appointment of additional directors to the board.” Following completion of the pre-feasibility study (PFS) within the northwest area of Groundhog, where initial production is expected to commence, the site activities has ramped up considerably with an intense drilling and extraction program. Atrum’s vice-president operations Ben Smith says, “The operational team has been flat-out at Groundhog preparing to deliver first anthracite on ship. Ultra-high grade anthracite has been accessed readily from a surface extraction program and we have exposed a thick anthracite seam at the proposed mine portal.” Recent drilling data supports a structure which will allow the company to expand a small-scale shallow adit style underground mining operation within the portal area into a full scale mine.

maiden JORC resource by the end of 2014.

Three approvals for Vista project The Alberta Energy Regulator (AER) has issued a number of environmental approvals and licences for phase 1 of Coalspur Mines Vista project in Alberta, Canada. AER has issued: • An approval under the Environmental Protection and Enhancement Act for the construction, operation and reclamation of Vista;

Balamara advances Polish strategy Balamara Resources is progressing its Polish coal development strategy with resource development and permitting activities on track. It is pursuing the evaluation, exploration and development of its portfolio of three Polish coal projects as its core growth strategy and is focused on achieving production at all three as part of a staged development approach. Balamara retains 100% ownership of Nowa Ruda Coking Coal Project after replacing the agreement to sell a 15% project equity stake to its major shareholder, Ample Skill Ltd, for US$5 million with a placement at corporate level for 66.5 million shares. Work remains on track at Nowa Ruda with the key objective of lodging the PZZ (Polish application for a licence to mine) by the end of quarter one in 2015. It is likely this application will take 6-9 months to be approved, which will allow Balamara to complete all feasibility studies by end of 2015. Balamara secured an initial 15% interest in the Mariola Thermal Coal Project through a $1.6 million deal and work is progressing towards completion of a merger between Balamara and Carbon Investment, the private Polish company that owns the remainder. This will enable Balamara to achieve 100% ownership of this asset. Carbon Investment has commissioned Wardell Armstrong International to complete a maiden JORC standard resource as the catalyst to complete this merger. Balamara announced the addition of the Sawin Thermal Coal Project in July 2014. Work is under way to commence digitization of existing data to deliver a October 2014 l Coal Age Indonesia l 21

Around the world • An approval under the Water Act to carry out activities for the purpose of constructing, operating, maintaining and reclaiming Vista; and • A licence under the Water Act to operate works and to divert a limited amount of ground water and surface water annually. The final stage of the AER process is the issuance of a Mineral Surface Lease pursuant to the Public Lands Act, for which Coalspur has applied. Coalspur has about 55,000 hectares of coal leases within the Hinton region of Alberta. Its flagship project is Vista which covers about 10,000 hectares and provides a large-scale, surface mineable, thermal coal development. Vista is adjacent to CN Rail’s main line, which is suitable for the transport of coal to deepwater ports on Canada’s west coast. Coalspur is currently undertaking a strategic review process in relation to Vista and is finalizing the EPC contract with Sedgman and the mining contract with Thiess.

Vinacomin lifts production forecast Vietnam National Coal & Mineral Industries Holding Corporation (Vinacomin) plans to adjust coal production from 34 million to 35 million tonnes, and coal consumption from 35 million to 35.5 million tonnes in 2014. Until mid-August, Vinacomin had produced more than 22 million tonnes of raw coal, and sold 21.1 million tonnes, achieving 60% of its plan. It has adjusted production and consumption estimates due to forecasts of higher consumption of coal at the end of the year, especially coal dust 5, because of cement plants and thermal power plants starting operations. Currently, Vinacomin is directing its member units, to take advantage of favourable weather conditions to focus on mining, processing, and sorting coal in the remaining months of 2014, ensuring an adequate delivery to customers, while strengthening labour safety and storm prevention measures, in order to maintain stable production.

Extension of Amaam exploration licence Tigers Realm Coal has announced that its exploration licence for the Amaam deposit in Russia’s far east has been extended to December 1, 2017. The extension was granted by Rosnedra, the Russian Federal Agency for Subsurface Use and registered by Dalnedra, the Rosnedra Branch for Subsurface Use for the Far Eastern Federal District. The extension for a further three years is an important achievement that provides the necessary security of tenure that enable Tigers Realm to continue its resource drilling programs, feasibility studies and works required to convert its coal resources to extraction and exploration licences. The company’s CEO Craig Parry says, “Whilst our current focus is the rapid development of the low capital and operating cost Project F mine at Amaam North, Tigers Realm continues to view the world-class Amaam project and its large resource base of 464 million tonnes of high-fluidity coking coal as a major value driver in its portfolio of outstanding projects.”

Positive Crown Mountain PFS Jameson Resources reports that the prefeasibility study (PFS) on its Crown Mountain Coking Coal Project in Canada shows the development will have outstanding economics and be technically robust. The company commenced certain longer-term environmental studies in April 2012 with the objective of fast-tracking the permitting process. This work is expected to be completed in time to meet the first production date of late 2017. Crown Mountain is in the Elk Valley of southeast British Columbia, source of the majority of Canada’s hard coking coal exports, and home to five operating mines. Crown Mountain is ideally situated between Teck’s Line Creek and Elkview operations, and displays similar geology and coal quality. With a relatively low strip ratio, Crown Mountain has several competitive advantages among the field of developing coking coal assets worldwide, including being located in an infrastructure-rich area of stable and politically favourable Canada. 22 l Coal Age Indonesia l October 2014

Management is excited about the results of the PFS, and plans to continue to move forward with Crown Mountain. This will be accomplished on two fronts: • The Environmental Assessment field work required to compile a permit application will continue to be fast-tracked, with the aim of achieving the late 2017 first production target date in the PFS. • Detailed evaluation will be performed with respect to developing alternate scenarios which build upon the PFS and continue to provide improvement in the financial result.

Brakfontein mining right granted Universal Coal has been granted a Mining Right over the Brakfontein Coal Project in South Africa’s Witbank coalfield by the Department of Mineral Resources. The project is 50.29%-owned by Universal and has the potential to be the company’s third mine. With the Mining Right in hand and having already secured the National Environmental Management Act authorization, the project now only awaits the granting of the Integrated Water Use Licence and the Waste Licence before development activities can commence. Brakfontein hosts a JORC compliant thermal coal resource of 87.6 million tonnes, of which 70.5 million are in the measured category. The company is progressing well with a feasibility study, scheduled for finalization by the end of the year. CEO Tony Weber says, “Given Brakfontein’s close proximity to the Kangala Colliery, Universal Coal is evaluating the trucking of ROM coal to Kangala as an option in the feasibility study, thereby substantially reducing capital development costs and the scale of the water licence required.”

Kuro to acquire Elan stake Kuro Coal, a wholly-owned subsidiary of Atrum Coal, which is to be separately listed on the ASX following an Initial Public Offering, has agreed to acquire up to a 70% interest in the Elan Coking Coal Project in Alberta, Canada. The acquisition will take place through a joint venture between Kuro and Elan. Atrum Coal executive director and Kuro Coal non-executive director Gino D’Anna says, “Atrum is solely focused on taking its world-class Groundhog anthracite project through to production, so Kuro can provide Atrum shareholders with exposure to an exciting exploration venture as well as commodity and jurisdictional diversification. The Elan acquisition is an outstanding coking coal opportunity and fits Kuro’s Canadian metallurgical coal strategy.” The Elan acquisition includes 27 Alberta Crown Coal Lease applications covering a total area of about 23,000 hectares. Elan is in the foothills and front ranges of the Rocky Mountains of Alberta, about 30km north of Coleman.

Wenco secures Maules Creek contract On-the-ground service in Australia has netted Wenco International Mining Systems the contract to provide the fleet management system for Whitehaven Coal’s latest operation in northern New South Wales. Currently under construction, the Maules Creek project broke ground in January. One of the last major undeveloped coal deposits in the region, the project is authorized to extract up to 13 million tonnes of coal a year. With a potential 362 million tonnes of recoverable coal available, the project is set to last more than 25 years. To reduce capital, operating, and maintenance costs during that time, Whitehaven will install the Wencomine fleet management system on all vehicles at Maules Creek. The core system will provide real-time data about operations and maintenance, letting mine personnel boost the productivity and reliability of their equipment. Along with the core system, the project will also use Wenco’s Maintenance Monitor, MobileST and other dispatching applications, and the BenchManager high-precision dozer and shovel system.

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Surface Mining: Increasing Productivity and Reliability Liebherr’s Mining Division supplies some of the largest machines for the surface mining sector. The company’s line of loading equipment consists of eight large hydraulic excavators with service weights from 100 to 800 metric tons (mt), rated power outputs up to 3,000 kW and loading capacities of up to 47.5 m3. Liebherr also builds some of the best trucks in the mining business. Powered by a diesel-electric driveline, payloads range from 220 mt to 360 mt. “Our high-performance machines for open-cast mining must have round-the-clock availability,” said Dr. Jörg Lukowski, executive vice president, Liebherr-Mining Equipment Colmar SAS. “For this reason, after-sales service has an absolutely crucial role to play. We invest regularly in extensions to our service network in the form of companyowned subsidiaries, in spare parts supply, component remanufacturing, and the qualifications and training of our service staff. Our aim in all cases is to be a trustworthy partner for our clients directly on-site.” In the past five years, Liebherr’s Mining Division has introduced more than one new development to the market every year. Last year at bauma 2013, the new Liebherr R 9400 hydraulic excavator with a 22m3 bottom-dump bucket matched with a 220-mt truck was the central focus of the outdoor exhibit. The company’s new bucket tooth system for the R 9100 to R 9400 was also on display. To synergize with its line of hydraulic mining excavators, Lukowski explained that Liebherr has returned to the 220-mt (240-ton) class with the T 264 haul truck. “This fuel-efficient truck is built for safety and reliability, and is sized to match the Liebherr R 996 B and R 9800 hydraulic excavators,” Lukowski said. The T 264 combines Liebherr’s Litronic Plus AC drive system and a 2,000-kW (2,700-hp) engine to yield higher speeds on grade. The

Liebherr’s 220-mt T 264 haul truck combines a Litronic Plus AC drive system with a 2,000-kW engine for higher speeds on grade.

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T 264’s hydraulic system offers efficient dump hoist performance that promotes fast cycle times. The T 264’s AC drive system delivers up to 3,300 kW (4,425 hp) of electric dynamic braking, reducing engine loading and fuel consumption. The T 264 is designed to operate for approximately 24 hours without refueling, depending on the application. An integrated electronic system monitors, records, and outputs vital truck health and performance data. Data is stored and available for download to perform detailed analysis. This system supports predictive maintenance strategies to minimize unscheduled downtime. The 350-mt R 9400 mining excavator can be used to load a fleet of mining trucks in the 130- to 150-mt category. This excavator is equipped in standard configuration with a backhoe or face shovel bucket of 22 m3. With either electric- or diesel-powered drive systems, this machine is a versatile option for a very wide range of mining applications. With more than 40 of these machines already operating in four countries, Liebherr believes these mining excavators achieve new peak values in terms of tons per hour in this service weight category. More recently, Liebherr’s Components Division explained how it continues to advance technology. “For years, we have been carrying out research and development projects in the areas of energy efficiency and hybridizing machines,” said Gebhard Schwarz, managing director, Liebherr-Component Technologies. The group developed a drive system for a hybrid excavator concept, which was presented at bauma 2013. The concept makes it possible to unite the advances of electric and hydraulic systems, Schwarz explained. “In addition to hydraulic pressure accumulators, storage systems that have been developed in-house with supercaps are used for the storage of electric energy,” Schwarz said. “Our focus is increasingly being placed on the design of complete machine systems and the optimization of the corresponding components,” Schwarz said. “As a result, we have developed the complete drive system for Liebherr's mining trucks over the past few years— from current generators, electric motors and wheel drives to complete control technology with power stacks (frequency converters) and drivetrain regulation. Additional diesel-electric systems are being prepared for various machines. “We are also working with new drive systems, which combine the advantages of a hydrostatic drive with mechanical drives, the so-called power split gearboxes (CVT gearboxes),” Schwarz said. “We see great opportunities for these drives in all applications where load collectives require the advantages of both systems, for example with wheel loaders.” Liebherr also supplies tailor-made tools for the maintenance of mining excavators, replacing hydraulic pumps and cylinders, travel drives or track pads. The unit assures optimal working conditions despite the size of these components. The service tools include a pin puller, a hydraulic pump lifting tool, a monitoring system for crawler tracks and their components, and a jacking system. The new jacking system developed by Liebherr is a straightforward, cost-efficient method of raising the mining excavator’s superstructure for necessary maintenance or replacement of the slewing ring. This jacking-up principle is a safe, efficient alternative to complex lifting work with a crane. The system has four synchronized hydraulic supports with an integral power stage and mechanical locking, the lifting frame, and a roller unit on which the working equipment is supported.

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These elements work smoothly together and lift the load safely with optimal weight distribution. As soon as the cylinder pins have been removed, the lifting frame has been installed and the bolts securing the slewing ring have been unscrewed, jacking up can be carried out by one person. In only 15 minutes, the superstructure reaches the maximum height needed to run the undercarriage out from beneath it. An ergonomically designed wireless remote control permits unrestricted movement, and an integral LCD display enables the user to monitor the system while the superstructure is being lifted. During October, Liebherr showcased its remanufacturing competence center in Ettlingen. While the company has always taken great pride in its high-quality manufacturing standards, it also understands the economical importance of remanufacturing, explained Kurt Schoellenberger, managing director, Liebherr-Ettlingen GmbH. “The aim of remanufacturing is to create the quality of a new product from material that has already been used, according to industrial standards,” Schoellenberger said. “Ideally, this means that as much as possible of a complete drive component, such as a diesel engine, is reassembled from previously used and reconditioned parts. A requirement for this is the suitability of the individual parts, which are subjected to stringent checks without exception. Wear parts, such as sealing materials and bearings, are not considered for reuse for quality reasons.” After a component is delivered to the Ettlingen facility, it passes through a high-pressure pre-cleaning process to remove the coarsest dirt. It is then completely disassembled and any wear parts that can obviously no longer be used are sorted and disposed of. The remaining material is then cleaned thoroughly, any paint is removed and detailed diagnostics are run. At this stage, each individual part is examined under the most stringent tolerance criteria and finally a decision is made on whether it is suitable for reuse. In the processes that follow, different mechanical processing methods are used to restore the asnew condition of the component. After undergoing repeated quality checks, the individual parts can then be stored for later use or immediately used in the refitting of a “reman component.” Before it reaches a mine site, each component is tested at state-of-the-art test benches, which are identical to those used by the series manufacturer. “To guarantee the quality, the components are also then subjected to the new-component test protocol,” Schoellenberger said. “We therefore provide the same guarantee for all reman components as for new components.” Remanufacturing is beneficial both economically and environmentally: In comparison with the production of a new component, reconditioned components require up to 75% less energy and raw materials by the time

A new jacking system developed by Liebherr raises the excavator’s super-structure for maintenance.

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The 350-mt Liebherr R 9400 excavator can be configured as a backhoe or a face shovel with a 22-m3 bucket.

they are delivered, Schoellenberger explained. “As an original manufacturer, we also have the ability to access all the required parts quickly or to produce them according to demand without great expense,” Schoellenberger said. “The latter applies particularly to older models, which are no longer series produced, so that our series production operations can outsource this work to us if needed. This production method has clear time and cost benefits for the customer. Having the option of various processing steps enables the customer to find the perfect solution for machines of any age, according to their requirements.” With diesel and gas engines; hydraulic pumps, engines and cylinders; travel, slewing and swivelling drives; splitter boxes and rope winches, the majority of Liebherr on-site production is already contained in the reman program today. Reacting to customer preferences, Liebherr now offers three different processing levels for its reman program: Exchange components, general overhaul and also classic repairs. As-new reman exchange components are ideally ordered preventively. The used component is only disassembled as soon as the exchange unit is delivered. The replacement is carried out within 24 hours, to ensure minimal downtime. The second option involves a general overhaul of the customer’s component. The component is extracted, sent to Ettlingen and then processed according to the same quality criteria. The price of a general overhaul is approximately 50% of a new component. However, the customer must accept a downtime of between three and 10 days, depending on the complexity of the unit and the mine’s location. For older machines that are only used for a few operating hours each year, purchasing an exchange component or carrying out a general overhaul is not always profitable. Whereas replacement parts and general overhauls have fixed prices, for classic repairs the extent of the damage is assessed first and then a price is quoted accordingly. The similarity to remanufacturing comes from the fact that reconditioned individual parts are also used where possible for repairs. “The guarantee is another feature,” Schoellenberger said. “It amounts to 50% of the guarantee for new components—not only for the replaced parts but also for the entire component, which distinguishes us from the common market practice.” Since 2006, Liebherr-Ettlingen GmbH has been able to quadruple its total turnover. Currently, hydraulic components contribute around 25% of component sales. Travel and swivelling drives have been the second largest product group processed. Diesel engines are currently their best-selling product, making up 65% of all components sold. Seeing large future growth potential, Liebherr has invested approximately €500,000 (US$679,000) per year in production resources and it is currently in the process of further expanding Ettlingen’s capacity. Due to lengthy transport times and customs and export barriers, it has become necessary to establish other continental reman operations

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Liebherr’s reman program is expanding to other regions.

based on the Ettlingen model. Sites currently under development include Burlington, Canada, and Nizhny Novgorod, Russia. These will be able to take on production within the existing manufacturing companies as departments of Liebherr-Ettlingen GmbH by mid-2014 at the latest. To do this, they are orienting themselves closely with the processes in Ettlingen, which is being supported through employee exchanges and the appropriate training courses.

Exporting Surface Mining Experience With a foundation built on 60 years of in-house experience in continuous mining, RWE Power International (RE GmbH) provides expertise in the design and operation of large-scale open-cast and open-pit materials handling systems. “We feel that there is a movement toward continuous operations within the mining industry,” said Dr. Martin Schmid, head of business development for RE GmbH. “However, for continuous mining to be successful, it needs careful planning and operational experience, which is what RE can provide.” According to his colleague, RE’s head of mining, geology and hydrogeology, Stefan Blunck, providing experience-based operational assistance is an area that the company is now focusing on specifically. “RE is a planning partner for surface mining,” he said, “and we can bring expertise in areas such as maintenance as well as operations to companies that are evaluating new continuous mining projects around the world.” RE is now looking to transfer in-pit crushing and conveying solutions (IPCC) from its traditional soft-rock homeland further into hard-rock ter-

ritory, with primary crushing with mobile or semi-mobile crushers being used only to size run-of-mine rock for conveyor transport. The company also sees great potential in countries such as Australia and Chile, where mines are being expanded and existing long-distance conveyors will need duplicating as the tonnages being handled increase. One area in RE’s portfolio that is experiencing increasing demand is in the training of technicians and engineers. During tailor-made training sessions in RWE’s German operations, they acquire the local know-how in conveying technology, for example. The aim is not only to ensure reliable and highly available operation of existing plant and equipment at home, the participants also learn to evaluate key parameters such as product quality and configuration, so that they can optimally design new plants in their own operations. The targets: lower maintenance, reduced downtimes and higher profitability. Aside from the operational side, RE also remains deeply involved in setting standards for the surface mining sector, in areas such as conveyor suitability and durability. The company has its own testing facilities, available to customers worldwide, where it can perform standard DIN tests as well as those of its own design, from which it can then make recommendations on the quality and suitability of specific belts.

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Selective Mining Lowers Costs The Australian continent offers a wealth of mineral resources that is truly unique in the world. As a raw material supplier of, for example, coal, iron ore, bauxite or nickel, Australia holds a prominent position in the world market. The economy of the fifth continent is determined to a significant extent by the success of the mining companies. The mining industry is the key driver of economic growth. Conventional mining methods involving drilling and blasting were dominant until recently; since 2007, however, one of the continent’s largest iron ore producers has been banking on the innovative technology offered by the Wirtgen surface miners. The mines operated by Fortescue Metals Group (FMG) are Australia’s first large-scale project that uses surface mining as the main mining method. As many as 43 Wirtgen surface miners have become vital keys to the economically efficient mining of high-quality materials in FMG’s iron ore mines. FMG’s iron ore deposits are located in the Pilbara region in Western Australia, less than two hours’ flight north of Perth. In this region, FMG holds the mining rights to an area covering 71,400 km2. A special hallmark of the mines presently opened up by FMG is the flat-lying nature of the iron ore deposits. In such an environment, the advantages offered by the surface mining technology are most obvious: “Wirtgen surface miners allow high-quality products to be mined with economic efficiency even from technically challenging mineral deposits,” said Bernhard Schimm, manager of the Wirtgen Mining Division. In comparative studies that were performed as part of the selection process to determine the most suitable main mining method, surface mining was able to win out over all other mining methods.

As many as 43 Wirtgen surface miners have become vital to economically efficient mining at Fortescue’s iron ore mines in Australia.

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Repowering Underground Mining Trucks For those who think their commute to work is rough, try getting behind the wheel of a haul truck at the Newmont Mining Leeville project. The day starts at the mine entrance in Carlin, Nevada, which averages only 9 in. of rain annually. From there, the truck makes its descent to work. It traverses miles through a steep, winding tunnel until it reaches its destination—a mining face 3,000 ft underground. Here, the truck gets a short break while it’s loaded with up to 36 tons of ore. Then, it turns around and climbs back to the surface. The typical truck hauls 8-10 hours a day. It’s a tough grind, but the reward is well worth it—the mine’s primary product is gold with silver and copper byproducts. Due to these tough work conditions, mine haul trucks can’t last forever. When the Small Mine Development Co. (SMD) determined it was time to give one of their trucks an overhaul, they contracted MTU distributor Smith Power Products to help. Their 1998 Atlas Copco MT436 haul truck had endured more than 10 years on the job. It was time to rebuild and repower the vehicle. “Since it had seen so much action, SMD disassembled the truck down to the frame,” said John De La Hunt, Smith Power Products branch manager. “We helped them rebuild it with a new engine and components and the customer performed a zero-hour rebuild.” The truck’s original Series 60 engine performed admirably, so SMD decided to stick with MTU. “The Series 60 engine was well-known for its longevity. It was not at all uncommon for them to reach 20,000-25,000 hours before requiring an overhaul,” said De La Hunt. From start to finish, the project was completed in about three weeks. Engine reliability, cost of ownership and time between overhauls are important to an underground mining company’s bottom line. “Haul trucks must have the highest availability—its uptime has to be as close to 100% as possible. When they need it, it’s got to perform,” said De La Hunt. With MTU’s legendary engineering standards, the Series 460 is perfectly suited to fit those qualifications. After all, when hauling gold and other precious metals, downtime can affect another valuable commodity—revenue. “While MTU’s reputation for dependability was a major factor, engine and noise emissions were the two biggest reasons we selected the Series 460,” said De La Hunt. “Newmont (the mine owner and operator) and SMD (underground mining contractor) strive to improve the air quality at their underground operations. And because SMD is a contractor for Newmont, they see a special need to provide the best technology for their customers.”

After 10 long years of constant work, a 1998 Atlas Copco mine haul truck is repowered with a Series 460 engine from MTU. Now with higher performance and lower emissions, the truck is ready to serve Small Mine Development Co. for years to come.

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The Series 460 has established itself as the premier low-emissions engine in its power class. To comply with Tier 4i standards, the addition of an SCR emissions system preserves the engine’s inherent fuel efficiency and dependability, and requires no major changes to engine design. “SCR provides an advantage for these engines,” said Dee Wise, MTU sales engineer. “It’s an automated system that comes with the engine—so there’s nothing the owner/operator has to do to maintain the system. It’s more efficient, and requires less engineering—all you need is diesel exhaust fluid.” Don Rathburn, maintenance superintendent at SMD, is pleased with the results. “The contribution toward our DPM (diesel particulate matter) program has been phenomenal,” he said. “The reduction in our particulate and NOx emissions has been significant—we’ve gone from the 400 parts per million range to nearly 120-130 parts per million.” Both Newmont and SMD are big believers in engines from MTU, with the vast majority of their fleets powered by MTU and MTU Detroit Diesel two-cycle engines through the years. With a Tier 4i Series 926 engine already in operation before the Series 460 was installed, SMD was first to Tier 4 in the marketplace. Rathburn said, “We’ve been moving toward repowering with the Series 460 and Series 926 on a variety of our older equipment. It’s brought a spark to that equipment and improved performance significantly. It’s actually performing better than when it was brand new. Since the initial haul truck, we’ve finished repowering another haul truck and a loader, and we’re working on a second loader now.” “Underground mining operators are constantly searching for a solution to increasingly challenging emissions standards without compromising productivity or complicating operations,” says De La Hunt. “SMD found the perfect solution in the Series 460. As we help them expand and repower the rest of their fleet, they’re going to .

A Simpler, Smoother Design Increases Hydraulic Flow for Longwall Operations In the last four years, Kamat completely redesigned all of its plunger pumps from 80 to 400 kW. The objects of the redesign was to reduce vibration and noise emission and to allow vertical and horizontal installation. At the same time, the advantages of the Kamat design would be retained: ease of service, wide interchangeability of spare parts, long lifetimes, superior VFD regulating range, and service only from top for a small footprint. Changing the pump head design was not an option. The gear ends were redesigned, but the wear

Kamat changed the gear ends for its longwall pumps, but left thew wear parts the same.

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parts of the new gearboxes are identical to those of the old design. For a mine that still runs the old pumps, the wear parts they stock will not become obsolete even if the pumps in operation are updated. As the general principles of the gearboxes have been kept, the general advantages could be kept: bearings free of axial forces (longer bearing lifetime, less heat), service without draining the oil, service from top, and a small footprint. The new Kamat gear ends (K8000M-3G to K40000M-3G) run so smooth; a coin placed vertically on the pump head will not fall while the pump is running, according to Kamat. This extremely low vibration level emits substantially less noise and allows noise reduction by the softest possible suspension of the pump’s drivetrain. Moreover, in modernizing the existing pump range, Kamat extended its pump range substantially in two directions. The pressure range of the standard Kamat pump range has been extended in the last few years to a reliable 3,500-bar pressure basically for cleaning and cutting applications. This is 10 times higher than what is needed for longwall hydraulics. Longwall pumps are Kamat’s lowpressure pumps, but big longwalls with fast cutting shearers require increasingly greater flows. To satisfy that need, Kamat launched two quintuplex pumps rated at 530 kW (max.) and 800 kW (max.), the K50000M-5G and K80000M-5G, respectively. These two pumps extended the range of the Kamat pumps from 12 to 14 available power ratings doubling the max available power input for a single gearbox from 400 kW to 800 kW. When Kamat decided to double the power input of its pump designs, the whole production process had to be adapted for a new pump size. The old manufacturing machines could not machine the bigger pump heads and gearbox housings. The company built a second factory with bigger CNC centers, with automated handling systems and CAD/CAM installations. In the main Kamat factory, the paint shop was redesigned to accept the 800-kW pumps. The test bed has been equipped with 1-MW power supplies. Joint research with German universities showed clearly that a triplex pump arrangement would not be able to deliver large flows (K80000 = max. 3,482 l/min) at an acceptable net positive suction

head required (NPSHR) level. To eliminate cavitation, Kamat opted for a quintuplex design and it has proved to be so reliable that the company says it is now able to supply units that can pump more than 600 l/min without the need of a booster. Low inlet valve pressure losses and low acceleration losses have eliminated the need for booster pumps. This is a big advantage for longwall mines. Removing booster pumps, their power supplies, switches, fuses, piping, base frames, etc., and relying on one pump system and its power supply simplifies the entire process. For longwall mines cutting coal, the K50000M-5G can deliver 641 l/min at 420 bar or 7,63 l/min at 360 bar. The K80000M-5G can deliver 1,185 l/min at 420 bar or 1,360 l/min at 375 bar. This means that a whole longwall can easily be powered with a single pump. For more than a year now, U.K. Coal’s Kellingley colliery has operated its longwall on a single K50055M delivering 641 l/min with a VFD drive. This is the simplest and easiest way to run a longwall. A K80000M5G can easily handle any longwall application, according to Kamat. Big fluid flows, however, are more complicated to control than smaller flows. So Kamat also launched a new range of fail-safe smooth acting unloading valves for flows up to 1,500 l/min per pump at 500 bar (max.). Design engineers again focused on service and the interchangeability of spare parts. The check valve and 2/2-way valve in the Kamat unloaders are fully interchangeable. Mechanical and electro-hydraulic versions are available. The mechanical pilot valve may be fitted with only four bolts onto an electro-hydraulic unloading valve if the electronic control system is down. This assures superior availability of the pump system. An unloading valve has to act quickly to control the line pressure to the face reliably. This means that certain pressure shocks will remain—increasingly with bigger flows. Kamat pioneered big flow pumps in coal mines and introduced VFDs for longwall pumps underground. Several installations proved that a VFD-driven longwall pump increases service intervals and availability impressively. The VFD eliminates pressure shocks by simply changing the pumps drive speed if the longwall changes its flow demand. This is also reflected in a much more stable pressure as the VFD reacts to even 1 bar change in pressure.

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Kamat pioneered big flow pumps and introduced VFDs for longwall pumps.

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Pumps controlled by unloader valves will only react if the pressure drops or rises out of its scan. VFDs eliminate the unloading action completely. The pump is running smoother and the entire network—the hoses, pipes, flanges, etc.—is facing much less stress. The overall reliability of such a system improves significantly. In one of its installations, Kamat claims the VFD-controlled pump hasn’t been repaired for 4.5 years. In these arrangements, Kamat only uses one VFD per pump system—no matter how many pumps are installed—due to the wide regulating range of its gearboxes. Using one VFD per system also holds costs down. Flow requirements for longwalls seem to constantly increase. Adding more unloading-valve-controlled pumps with boosters was becoming complicated and the systems were struggling to control pressure. Modern Kamat systems are equipped with one to three big pumps (no boosters) controlled by a single VFD.

Giving Miners What They Want For more than 20 years, miners have relied on the MinCa, short for mining car, as a dependable form of transportation underground. Manufactured by Emsbueren-based Hermann Paus Maschinenfabrik, it is a front-steered, all-wheel-drive vehicle for transporting miners and materials (payloads up to 4 metric tons). It features a number of add-on cassettes, such as passenger cabins, crane platforms, and tank and service units, to meet specific customer requirements. While its robust design and relatively low service weight (7 mt) are important features, the MinCa can also transport up to 18 people when used as a sole passenger vehicle. The ultra-compact vehicle measures 5.8- x 2- x 2.1-m (L x W x H) and it can make a 90° turn with an entry width of only 4.3 m or less. A further reduction in the turning radius is possible with an optional four-wheel steering system. The MinCa is powered by a 90-kW Deutz engine, classified as COM II and IIIa in terms of exhaust emissions, with which it can achieve speeds of 33 km/h. The hydrostatic drive is a plus for inclines where it can reach high speeds with optimum efficiency without the need to change gear. The Paus MinCa’s climbing ability is around 60%. A hinged driver’s cab can be tilted forward using a manual pump to provide ease of access to the engine and hydraulic components for repair. Even though Paus has been building this type of chassis for 10 years, the company believes it has now made an additional leap forward with the new chassis for the MinCa. Both the steering axle as

The MinCa can carry 18 underground miners to work and back.

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well as the rear axle are oscillating (±12°), by which two trailing arms and wishbone arms are suspended on the vehicle chassis, the result is all tires remain in contact with the ground even with poor under-foot conditions. Impacts to the chassis and cabin are attenuated by springs and shock absorbers. The springs are tensioned at the ends of the axles between the axle and the chassis and shock absorbers are fitted between these springs and also between the axle and the chassis. Further features of the chassis include the end position stop, catch ropes and rubber buffer for the cab mount. Before its launch, the MinCa with its new and innovative chassis was extensively tested and comprehensive measurements were taken on the ATP test track for off-road vehicles in Papenburg. A video is available at: www.paus.de. This is a prime example of their motto: listening to the customer and providing them with exactly what they need, explained FranzJosef Paus, managing director, Hermann Paus Maschinenfabrik. “Some mines are having more difficulties than others maintaining profitability and controlling costs,” Paus said. “We provide equipment engineered for their conditions, their expectations, and their way of working, rather than a standard product, which is not optimized for the application.” As an example, Paus offered a hypothetical situation where an underground mine needed a fleet of dumpers. The standard 20-ton units are too big. The standard 10-ton units work, but the cycle times are inefficient. “In that case, Paus would build a fleet of 15-ton dumpers for that mine,” Paus said. “The custom machines would probably be a little more expensive than the standard units, but there would be other benefits in terms of cycle times and fuel savings.” Many mines demand the latest technology, such as electronically controlled engines, while others do not. “Some regions do not have the maintenance skills or the fuel quality for electronic controls, and we can supply equipment for those mines,” Paus said. Increasingly, Paus cautions, it’s becoming more difficult to find components with low levels of electronic parts. Engine and pump manufacturers do not always supply two types of components. “This is one of the areas where we excel—knowing what miners from different regions want and understanding the variety of components available, as well as the legal issues surrounding their use,” Paus said. Next year, Paus will launch a new smaller utility vehicle at Expomin in Santiago, Chile. “We recently overhauled our PFL8 loader,” Paus said. “We introduced Canbus systems. It’s not a new development, just continuous improvement of an existing product along with a new z-linkage and engine.” Paus employs 300 craftsmen and they have a wide range of competencies. When it comes to providing solutions, they also benefit from cross pollination by applying technology or components they use on the construction side for mining and vice versa. “Miners approach us with a situation and oftentimes we can provide a tailored solution,” Paus said. One example is the company’s new concrete spraying train. The rail-mounted vehicle consists of a concrete sprayer with diesel-powered concrete spray machine (BSG 8) and a concrete mixer trailer (BTG 4) fixed to the spray machine. A concrete mixer and a concrete pump are fitted on the concrete mixer trailer. The material is conveyed from the concrete pump to the spray nozzle through a hose and sprayed with the aid of compressed air. The concrete spray machine BSG 8 is equipped with a Deutz diesel engine with an output of 115 kW at 2,300 rpm. The speed of the vehicle can be infinitely adjusted in both directions (0-12 km/h) by means of a hydrostatic drive. The core of the spraying train is the concrete spray manipulator consisting of a rotating column, a telescopic boom and a spray manipulator. The rotating column is positioned on a pivot table and can be hydraulically pivoted laterally together with the telescopic boom

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The Paus PFL8 now operates with Canbus, a z-linkage and a new engine.

and manipulator alongside the catenary. The rotating column at the front end of the machine operates hydraulically, permitting 360° rotation and worm drive. A three-stage telescopic boom (2.9-m telescopic length) is attached at the upper end of the rotating column, which can be extended, raised and lowered with the aid of a hydraulic cylinder. The manipulator, with a spray capacity of 7.5 m,” consists of two hydraulic pivoting drives, which move the spray nozzle into the required position. The nozzle has a pivoting range of 360° along its longitudinal axis and 240° around its transverse axis. The hydraulically driven rotary vane compressor with an air flow of 7.5 m3 per minute (operating pressure 8 bar) ensures that the concrete is sprayed by compressed air from the nozzle to the rock face. An adjustable liquid metering system enables a range of dif-

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ferent additives, such as curing accelerators, to be used. What is more, the BSG 8 has an accelerator tank for liquid additives with a volume of around 100 liters. The degree of liquidity of the concrete can be adjusted by the 24-volt electric pump. The BSG 8’s integral cleaning system consists of a hydraulically driven high-pressure cleaning unit with an output of 200 bar and a tank that holds 200 liters of water. To improve its stability, the BTG’s pivot table can be supported by hydraulic supports on the floor adjacent to the track vehicle or between the rails. The concrete mixer and concrete pump are positioned on the trailer. The concrete mixer, with a drum volume of 5 m3, works by the post-mixing method, whereby finished concrete is kept mixed. The mixing drum is hydrostatically driven by the spray machine’s diesel engine. The stationary drum is charged through the upper manhole and the closing lid plate is opened to unload. The concrete pump is located underneath the reopening plate and works as a piston pump, which is also hydraulically driven by the spray machine’s diesel engine. A concrete hose connects the spray nozzle to the spray manipulator. The rail vehicle’s mixing drum can also be charged by a mobile concrete mixer truck, by driving the mobile mixer to the concrete pump and transferring concrete into the concrete pump. The quality of the machine components makes the vehicle ideal for use in extremely damp and seriously wet environments. The rail vehicle is equipped with an open and comfortable cab located in the center of the concrete spray vehicle. All steering and control equipment is clearly arranged in the cab. Convenient access is possible from both sides and a cushioned driver’s seat and comfortable and easily reachable controls continue to win over users.

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Customized System Solutions for Bulk Materials The ever-increasing technical demands in the bulk materials industry are reflected in the particular expectations of the user. Manufacturers who can supply all of the equipment and bring a project from concept to completion are in high demand. The Beckum-based Beumer Group with affiliations around the globe develops customized system solutions for conveying and loading systems. Beumer also acts as the main contractor on behalf of its customers. “A significant trend is that more and more clients want to commission their systems in a turnkey state,” said Dr. Gerd Oberheuser, head of system technology for the Beumer Group, regarding the increased market requirements. “EPCM [engineering, procurement and construction management] is more than a buzz-word. It’s an enhanced form of project management. And, this trend can be seen in many parts of the bulk materials industry, especially open-cast mining.” “For a quotation to be accepted, contracts are often only placed on an EPCM basis,” said Dr. Oberheuser. This means that, as well as supplying the equipment, Beumer is responsible for the whole process. This includes the design of the entire system, the installation, the commissioning and the instruction of subcontractors. Not only does a high availability of machines and systems play a decisive role, but also optimum support. For this reason, Beumer has set up competence centers in the Czech Republic, in Austria, at its headquarters in Beckum, and in North America. These take care of research and development, sales, project management and purchasing. With its solutions, the Beumer Group helps users to work more cost effectively and in a more environmentally friendly manner. The company’s belt conveyors enable companies to transport large quantities of bulk material from the mine to the port as cost effectively and as quickly as possible. Conveyors hold distinct advantages over trucks. Road building is expensive, and as production grows so does truck traffic. Added to this are the operating costs and emissions caused by the fleet—both with regard to fuel consumption and personnel costs as well as noise and dust. Belt conveyors usually traverse a direct route, delivering materials much more quickly. They can be operated with significantly fewer personnel. Depending on the project, the systems need up to 90% less energy than comparable truck transportation, which reduces its carbon footprint. Belt conveyors can overcome long distances, steep gradients and tight curves, and can be individually matched to the particular task and to-

pography. Use is made of durable, tension-resistant conveyor belts. In doing so, Beumer uses various calculation programs to determine the optimum belt design. These enable tensile forces to be analyzed and also forces that occur due to acceleration and deceleration—always taking into account the intrinsic weight of the belt and the transported material. They are also used to determine possible curve radii. Beumer can provide advance feasibility studies. In addition, the belt position is calculated in advance with the appropriate curve radius for the empty and loaded states. With their slender lines, belt conveyors overcome broken terrain and other obstacles such as rivers, roads, buildings or rail tracks. Horizontal and vertical curves in the routing can also be overlapped. Depending on the requirement, Beumer offers open troughed belt conveyors for higher throughputs and larger mass flows as well as larger curve radii, and enclosed pipe conveyors for products, which need to be protected against the effects of the environment. At the port of Callao in Peru, Beumer will be installing pipe conveyors with a length of around 3 km for transporting copper, lead and zinc concentrates for completion in 2014. “Depending on the landscape and environmental conditions, we can install overland conveyors with horizontal curves with lengths of up to 20 km,” said Oberheuser. Gradients of up to 15° can be realized depending on the characteristics of the materials to be conveyed. After planning, installation and commissioning, maintenance and service are no more laborious than with a straight conveyor. On average, the annual maintenance costs are only around 2% of the investment sum. In Canada, Beumer is currently installing a conveyor with a length of 3.48 km for a large mining operation. This will convey up to 6,000 metric tons (mt) of iron ore per hour. This large-area conveyor system must withstand extreme temperatures of down to -40° and heavy snowfalls. Beumer has designed all mechanical and structural elements for the extremely low temperatures. For example, the system is fitted with a feed conveyor and an unloading system with tripper car. As the main contractor, Beumer has equipped a new distribution center off the shore of Malaysia with 17 trough belt conveyors with a total length of 12 km for a large iron ore exporter. The conveyors ensure swift transport of iron ore from super-size freighters to the mainland. Beumer delivered and installed the conveyors, put them into operation and took full charge of engineering, all according to a strict timetable.

Belt conveyors traverse a direct route and are much more competitive than truck transportation.

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Mineral Processing: X-ray Ore Sorting Lightens the Load on the Mill Long recognized as a market leader in magnetic separation, Steinert has also branched into sensor-based sorting systems. The company supplies electromagnet drums, eddy current separators and induction, and X-ray and near-infrared (NIR) sorting systems. The company recently supplied an X-ray sorting system to the Wolfram Camp mine in northern Queensland, which produces tungsten, molybdenum and bismuth concentrates. In 2008, open-cut mining and ore processing through a new concentrator commenced operation; however, the plant operated for less than three months when technical difficulties coupled with a shortage of working capital, further compounded by the global financial crisis, resulted in a suspension of operations. Wolfram Camp Mining Pty Ltd. was acquired by the current owners in 2011 and they embarked on a plant modification and expansion program. The process plant was designed to treat ore from an open-pit mine at a rate of 150,000 metric tons per year (mt/y), through a process comprising: • Two-stage crushing; • Ball-mill grinding in closed circuit with a screen; • Bulk sulphide flotation, followed by selective flotation of molybdenite into a concentrate; and • Flotation tailings treated in a gravity circuit comprising centrifugal jigs and shaking tables producing a +60% wolframite concentrate. The plant modification program improved ball mill screening; added cyclones, spirals and shaking tables; and removed centrifugal jigs, drying, and magnetic and electrostatic separation. Limited test work had been carried out by the previous owners into Xray ore sorting and indications were that a high proportion of barren material could be rejected with minimum loss of valuable minerals. This offered a process route to increase annual tonnage treatment by rejecting a significant amount of waste ahead of the grinding and downstream process plant.

Pilot ore sorting was carried out at the site, which confirmed earlier findings, then an arrangement was entered into with Steinert to lease a commercial capacity ore sorter for on-site trials that further confirmed the amenability to X-Ray ore sorting and culminated in acquisition of a new unit that was commissioned in March 2013 and incorporated into the Wolfram Camp Process. Now a sub-standard grade ROM material is upgraded to economic grades. With all the improvements implemented successfully, the plant doubled its capacity to 300,000 mt/y. The X-ray sorting technology was developed in Germany, and Steinert in Cologne and its field offices in Australia, South Africa, Brazil and the U.S. are helping mining operations by applying this technology. “The system at Wolfram Camp uses a flat conveyor to feed material in a single particle layer to the X-ray scanners,” said Johan van Zyl, product manager-mining for Steinert Australia. “The conveyor runs at about 2.5 m/s through the X-ray system, which scans each individual particle and determines if it is a wanted or unwanted. It makes that decision by measuring the average atomic density of the particles, which is a function of the mineral. A computer subjects each particle to an algorithm. The particles follow the normal arcing trajectory over the end of the conveyor. Under the particle stream, a series of air jets, which are controlled by the computer, locate the individual wolframite particles and blast them out of the stream with a compressed air pulse.” This technology has been available for 30 years or more, but advances as far as microprocessors enable the processing to happen at a speed that allows decent throughput, van Zyl explained. “There also has been several advances mechanically with air valve technology,” van Zyl said. “When the technology was first tested, the throughput was so low that the system was not economical.” This technology lends itself to high-value base and precious metals, such as tungsten, nickel sulphides, gold, platinum, diamonds and other gem stones. Steinert has recently tested the X-ray sorting system on diamonds. “We can separate the kimberlite from waste rock and reduce the size of the stream being processed,” van Zyl said. “The technology does not necessarily need to target the final product. We can do a pre-concentration to make the downstream process smaller and more economical.” Eliminating the waste rock ahead of the liberation process lightens the load on the mill and all of the downstream processes.

Improving the Efficiency of Solid-liquid Separation

Steinert’s X-ray ore sorter eliminates waste rock ahead of the liberation process.

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Decanter centrifuges are an effective means of separating solid-liquid mixtures. Similar to most areas, constant improvements have consistently increased the performance of these decanters. The GEA Westfalia Separator Group builds decanters for the mining business. Some of it largest machines can process 200 m3/h. The company has recently identified and implemented technological changes that will help it reduce energy consumption on these machines by as much as 30%. The decanter mainly consists of a bowl with a scroll. Both ends of the bowl are supported by roller bearings. The scroll rotates at a lower speed relative to the bowl, conveying the solids to the discharge ports. The liquid is discharged through holes in the bearing hub. In addition to supplying idling power, a primary motor, connected to a rotor by a V-belt, supplies the power to discharge the clarified liquid in a traditional arrangement. A secondary motor drives the scroll. GEA performed a power study on its machines. They determined that the ejection power of the clarified liquid is the most significant element, representing 45% of the machine’s total power requirement. Idling con-

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sumed 26% of the power. The power to transport solids was 7%. The losses through the frequency converter and the gearing amounted to 30%. To improve this situation, GEA developed the summation- drive concept. The power for conveying the solids is provided by the secondary motor. A frequency converter is used to control the secondary motor, which means the speed of the motor can be varied between 1 and 25 rpm. If a higher differential speed is required, a hollow shaft connected to the scroll may be driven by the primary motor by a belt. The differential speed range is shifted to 25 to 50 rpm. By using a different set of pulleys, the differential speed could be further increased to 70 rpm. “This is one of the biggest improvements we have made in this field in 20 years and we are referring to the new product line as the CF line,” said Tore Hartmann, senior product manager-mineral processing, GEA Westfalia Separator Group. “We combined the old system, which used two gearboxes, into one system with three steps of planetary gearing. Through optimization, we have improved the energy balance of the machine and reduced energy consumption by at least 10%.” The summationdrive system speed drive is designed with an above-average safety factor for high torques even in cases of high differential speeds. With a rugged, robust and reliable design, the decanter centrifuge has several improved features, such as a flattened cone, an external gear, an enhanced solid output diameter and a special scroll design for the highest solid throughput and highest dryness. Hartmann specializes in solid-liquid separation equipment and he said that GEA has identified many areas for these decanters in the mineral processing sector. “Many of these machines can be found working in the industrial minerals sector, processing kaolin, talc, bentonite, calcium carbonate and lithium carbonate,” Hartmann said. “These machines have also been used to treat the crud formed by the foam during the extraction phase of the SX/EW process. We have developed machines with Hastelloy C276 specifically for this segment.” GEA has already sold and commissioned several different sizes of these machines worldwide.

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GEA Westfalia’s decanter centrifuges have been used successfully to remove the crud formed by the foam during the extraction phase of the SX/EW process.

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HAZEMAG GROUP TODAY

Headquartered in Dülmen, Germany, Hazemag & EPR GmbH has a long track record as a provider of outstanding engineering and class-leading products, with a history dating back to 1842. During the last years, the company was transformed from being a specialized crusher supplier, mainly for the cement and aggregates industries, into the Hazemag Group—a solutions provider for minerals processing, supported by its newly-created business development center. The Hazemag Group can now offer a complete range of crushing technologies: Building on years of experience in crushing with impactors and hammer mills, Hazemag now offer hard-rock gyratory, cone, and jaw-crusher technology, through its South African subsidiary IMS Engineering, and the acquisition of MinPro brought impact roll crushers and feeder-breakers to its portfolio. The company has also increased its ability to supply customers with turnkey projects in

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mineral processing. Its acquisition of allmineral has brought expertise in coal and ore beneficiation technologies to the group, while the integration into Hazemag of the long-established engineering firm Saarmag, has given it the ability to offer systems for transporting, stacking, reclaiming and stockpiling bulk materials. As an example of its capabilities, Hazemag recently installed a complete primary-to-tertiary crushing plant at one of South Africa’s largest iron ore mines. In the plant, a primary gyratory followed by two secondary gyratory crushers and four tertiary cone crushers, reduce the ore down to minus 30 mm. Hazemag followed this by supplying a complete processing plant based on allmineral’s jigging technology, employing 24 alljigs, and creating the world’s biggest iron-ore beneficiation plant. Hazemag has also been active in supplying new crushing concepts to the diamond industry. After extensive testing, it designed crushing

technology for a famous diamond manufacturer that significantly reduces stress on the diamonds during ore crushing and, as a result, minimizes losses during subsequent processing. Underground and open-pit coal processing is also an important market area for the group: The capabilities of Hazemag’s crushing and mine-development equipment are renowned in longwall applications; and allmineral’s wet and dry jigs are widely used in coal beneficiation. Hazemag has also built on its success in supplying open-pit mobile and semi-mobile crushers, with units recently commissioned in China and south east Europe. Finally, Hazemag’s impact crusher technology continues to provide a reliable crushing solution for the cement and aggregates industries, with the company providing customized solutions, including complete processing plants, to address customers’ specific requirements.

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Innovations: Modern Storage and Reclamation

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Schade circular storage and blending bed at Dotternhausen.

In addition to the feeder and conveyor systems offered by its parent Aumund, Schade builds compatible products for the automated storage and reclaim of stockpiled materials. The company was one of the first to offer the chain scraper concept to reclaim coal and other minerals from storage and has since extensively developed this model and introduced the circular storage concept, which forms the core of many coal-fired power plants, particularly in China with more than 50 units so far commissioned in the country alone. Traditionally, the chain scraper design is limited to reclaim rates of around 2,000 metric tons per hour (mt/h) per boom. The 120-m circular buildings can store 180,000 mt of coal. In China, one unit sufficiently handles enough coal for a 600-megawatt power plant receiving seaborne deliveries from small cape size (140,000 dwt) vessels. However, the market is moving onward and upward with ever larger vessels and 2 x 600-MW power plants on a single site now being the norm demanding two 120-m diameter storage facilities to satisfy coal demand. Recognizing the challenges of such developments, Schade has conceived a new twin-boom design with opposing balanced stacker and reclaim booms with a diameter extended to 150 m, and the possibility of storing up to 400,000 mt under a single dome enclosure at handling rates to 6,000 mt/h with both booms running simultaneously.

System Simulation for Mining and Processing Equipment Today, maximum safety and reliability of equipment and machinery, while maintaining efficient operation, are essential. At the same time, quality requirements, such as high functionality and fail-safe design with as little vibrational behavior and wear as possible, must be met even under growing financial constraints. “These challenges raise many engineering-related questions, which can be answered efficiently by means of system simulation,” said Joerg Arloth, sales manager, ITI GmbH. “Such software helps to numerically assess various approaches early on in the develop-

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ment process and to check feasibility and potential room for improvements before an actual layout.” SimulationX developed by ITI, a firm located in Dresden, Germany, is such a simulation tool. Mastering the growing complexity of integrated devices and machinery efficiently both during the development and later on during real operation involves increasingly dynamic interactions between many sources, including mechanical, control engineering-related, electronic, electrical, magnetic, hydraulic, pneumatic and thermal systems. “Apart from solving specific simulation tasks, the modeling approach of such tools is an excellent basis for engineers to broaden their knowledge of system behavior,” Arloth said. SimulationX is a comprehensive computer-aided engineering (CAE) solution for modeling, simulating and analyzing physical effects in machines. It provides several simulation and analysis methods, which can be used within one model. They include simulations in the time and frequency domains as well as failure simulations (FTA, FMEA). Further analysis options consist of order analyses and analyses of transfer behavior, spectrums and eigenfrequencies. “The analysis of eigenfrequencies also includes mode shapes and the corresponding energy distribution in a system, such as powertrains,” Arloth said. “This is a possible starting point for optimizing vibrational behavior both from a mechanics point of view, as far as loads, wear, durability, etc., and in terms of energy efficiency with regards to damping, energy conversion efficiency.” SimulationX is used by development and design engineers as a system simulator and an integration platform. The idea behind the solution is to provide a homogeneous and open platform for modeling and simulating mechatronic systems that can be easily integrated into existing development and design environments. Engineers at Tenova TAKRAF, for example, use SimulationX to develop large gear units for bucket-wheel excavators with the goal to optimize the drive system for high performance, Arloth explained. At their Leipzig site, TAKRAF created a simulation model for calculating dynamic behavior and

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for the virtual commissioning of a belt conveyor. “Dynamics and efficiency of belt conveyors can thus be optimized accelerating the entire commissioning process,” Arloth said. Romonta GmbH uses SimulationX to analyze the dynamic vibrational behavior of their bucket-wheel excavator and its cutting boom during operation. Working with SimulationX as a system simulation tool makes analyses and evaluations, understanding, and mastering the complexity of components and their interactions in the entire system much easier.

Grinding Coal for Steel Mills Two Loesche coal mills, type LM 26.3 D, are currently being built at Dniprodzerzhynsk Steel Works in the Ukraine. Paul Wurth S.A., a Loesche client of many years, opted again to select the company’s vertical mill technology. This time, it is being used for the injection of coal dust into the blast furnace of the Dniprodzerzhynsk’s Steel Works in the Ukraine. There are already two coal mills in the Ukraine, provided by Loesche GmbH. Both are for the PCI Protects Jenakievo and Zaporozh Steel Works. So far, Loesche has sold eight coal mills to clients in the Ukraine. In Russia, three PCI projects are under way for Lipezk, Nizhny Tagil and Novokuznezk, totaling eight Loesche coal mills. All are currently in their construction phase. This means the existing PCI plants in Russia are 100% equipped with Loesche mills—a total of 17 coal mills sold by Loesche for the use in steel plants. For the Dniprodzerzhynsk coal project, two Loesche mills are intended, grinding 70 metric tons per hour (mt/h) of brown coal to a fineness of 20% R DIN 0.09 mm. The mill motor for both vertical mills, type LM 26.3 D, will have a capacity of 780 kW. Loesche’s scope of supply for both coal mills LM 26.3 will also include two gearboxes and two hot gas generators (HGG), type LF 20. Each will be equipped with a multiple lance burner (MLB) and a start burner. Paul Wurth S.A. will be handle the Dniprodzerzhynsk coal project and anticipates delivery of the Loesche mills for July 2014.

Mobile Conveying Equipment Uzbekcoal has launched a comprehensive program to modernize and improve the output of Uzbekistan’s most important open-cast mine at Angren. According to the company, coal production, which in 2010 amounted to 3.2 million metric tons per year (mt/y), should increase to 6.4 million mt/y by 2015. The Magdeburg-based FAM, a manufacturer of mining and conveying systems and equipment, is largely involved in this process by supplying mobile equipment for overburden and coal handling and conveying. The total weight of the FAM equipment to be delivered for this project amounts to approximately 5,000 mt. FAM will provide three units designed for conveying overburden with a throughput capacity of 4,000 mt/h each. Furthermore, each system consists of a crawler-mounted crusher and a mobile conveyor bridge. The relevant spreader with tripper car is designed for 12,100 mt/h and capable of managing the material from three faces. The entire system is completed

The Loesche LM 26.3 D mill grinds coal to a very fine consistency.

by four 800-mt/h belt wagons with hopper and cable-reel cars for transporting the coal to the bench belt conveyor. The mobile crushing plants are designed for a throughput of 5,250 mt/h each. They consist of an undercarriage with two steerable twin crawlers. The machine’s frame is supported on the undercarriage in a statically determined manner. Furthermore, a feed hopper, an apron feeder, a heavy-duty double roller crusher and a discharge belt conveyor complete the system. Shovel excavators feed the systems and ensure conversion of the discontinuous flow of materials into a continuous flow. Moreover, they also crush the material to grain sizes facilitating conveying on belt conveyors. The crushers are designed for high compressive strengths (up to 200 MPa) and can process rock up to 1.1 m in diameter. The height-adjustable discharge belt conveyor of the mobile crushing plants transfers the material onto the mobile conveyor bridges. The latter are 90-m long and designed so that the material can be transferred onto the bench belt conveyor in a large range of angles and from three different crusher working levels, which can be positioned between -15 m and +15

Crawler-mounted crushing and conveying plant in the Angren open-cast mine, Uzbekistan.

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m relative to the level of the bench belt conveyor. This way a total working range of 45 m is available. The conveyor bridge, which can be hydraulically leveled, is supported at both ends on a twin crawler mounted undercarriage. At the discharge head of the conveyor bridge, the crawlers are arranged on both sides of the bench and the material conveyed is transferred to the bench conveyor between the crawlers. The electric power required for the conveyor bridge and the crusher is supplied via a cable drum, which is connected to this undercarriage. Neither a change of the working level nor turning around at the tail station of the bench belt conveyor require decoupling of the system, i.e., the mobile crushers and the pertinent 90-m conveyor bridge need not be separated electrically. The three bench belt conveyors transport the overburden to the spreader whose 60-m-long discharge boom allows dumping up to a height of 22 m.

Rolling Bearings for Heavy-duty Use Whether for disassembly, loading, or transport, for milling, grading, or refining, Schaeffler, a leader in rolling bearings, supplies the right bearings to all the leading manufacturers and operators in mining and raw material processing. Thanks to its Global Technology Network (GTN), the company has very rapid turnaround times even when developing individual customer solutions outside of its standard product line that are customized to the operators’ requirements and challenges. Along with optimum consulting and services, Schaeffler provides solutions for practically every application in the mining and raw material processing industries. Its components can be found on haul trucks, crushers, vibrating screens, tunnel boring machines, and bucketwheel excavators. In any of these cases, machine failure can quickly cost the operator vast sums of money. Through intensive research and development programs, INA and FAG rolling bearings ensure high functional reliability and performance even for the most extreme demands. The company’s ongoing exchange of experience with manufacturers and operators, universities, and research institutes for mining and raw material processing continues to make new, customer-specific developments and product improvements possible. High capacity and reliability with low life-cycle costs for the customer are the objective. For bucketwheel shafts, bearings need to absorb high impact loading as well as compensate for shaft deflections and alignment errors. FAG spherical roller bearings have an angular adjustment facility and a high load-carrying capacity. They, therefore, provide the best possible characteristics for this application. The gearboxes for the bucket wheel are mounted directly on the bucket-wheel shaft. Using welded-on flanges, it is only possible to mount split bearings. FAG split cylindrical roller bearings simplify and accelerate bearing replacement, especially in areas that are difficult to access. Many assembly and disassembly steps are eliminated, downtimes are thus reduced considerably resulting in correspondingly high cost savings. For one mining customer, Schaeffler also developed a customer-specific solution by using an FAG cylindrical roller bearing with a triple split inner ring. Split bearings are also useful for conveyor systems. FAG spherical roller bearings, which withstand very high loads, are a good choice for the pulleys. The use of split bearings for this application is also particularly interesting from an economic standpoint. The inner ring, outer ring, and the roller and cage assembly are divided into two halves and held together with screws. The number of work steps required for a bearing replacement is considerably lower, resulting in shorter downtimes that greatly reduce costs.

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For the non-driven pulleys, which in conveying systems sometimes have internal bearings, Schaeffler has developed special cylindrical roller bearings. The bearings have a particularly long operating life and have long relubrication intervals. The ball bearings Schaeffler offers for idlers in conveying systems are completely maintenance-free. Moreover, bearings from Schaeffler are characterized by their long operating life and require no maintenance since they are lubricated for life. The main bearings of jaw crushers harbor further potential savings. Here, FAG E1 spherical roller bearings in X-life quality are particularly suitable. These bearings were specially developed for the most extreme loads and are employed everywhere that angular adjustment is a must. They work reliably, even in the most demanding environmental conditions. X-life quality extends the bearing’s nominal operating life, potentially increasing it by up to 70% for the same load—or resulting in the same operating life for a much greater load. At the same time, the lubricant is subjected to a lower level of stress due to the reduced friction and bearing temperature. This results in high system efficiency and reduced operating costs for customers. Moreover, smaller designs are made possible by downsizing. Virtually no bearing in the industrial sector is taxed in as many ways as a vibrating screen bearing, according to Schaeffler. The bearing cages, in particular, are subjected to heavy loads due to radial acceleration. In

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An FAG split spherical roller bearing.

unfavorable cases, axial acceleration may also be superimposed. The rotating imbalance generates a circumferential shaft deflection and additional sliding movements in the bearings. This increases friction and thus the operating temperature of the bearings. Nonetheless, it is critical to achieve an operating life that is as long as possible. FAG E1 spherical roller bearings in X-life quality are used for support here as well; the bore of the bearings is coated with Durotect CK to prevent fretting corrosion. The displacement capacity between the bearing bore and the shaft, which is necessary because of thermal effects, is maintained over the course of a long operating life. Reconditioning rolling bearings and bearing units can save money. This service is one of Schaeffler’s core areas of expertise and is offered at several certified locations around the world, where rolling bearings with an outside diameter of up to 4,250 mm are reconditioned and modified. On request, this is even possible for larger bearings— the main bearings of tunnel boring machines, for example. Moreover, Schaeffler’s bearing reconditioning service is independent of the manufacturer. The biggest advantage: The costs arising from reconditioning are considerably lower than those for a new bearing, while the delivery times are mostly short. To explain the importance of its Global Technology Network, Schaeffler offered a recent case from a copper mining operation. A complex conveyor system at the mine was responsible for transporting crushed ore. The strip mining conveyor transported 150,000 mt/h of ore over a distance of 8 km. The mine was planning to increase the system’s throughput by 50%—without making any changes to overall structure, framework, foundation or footprint. The key challenge here was finding a bearing that would fit in the existing housings, withstand the new, extreme loads, and have an acceptable operating life, all at the same time. In addition, since the existing system was already subject to frequent tensioning/take-up pulley failures, improved bearings and housings had to be developed for those locations as well. After a thorough analysis, the Schaeffler Technology Center in Danbury, USA, calculated that upgrading the existing bearings to the new E1 X-life version was the best solution for what was required. The problem was that this version was not yet in production. It was discussed with the relevant production line in Germany and the company arranged for the production launch to be moved up by more than a year to meet the mine’s needs. At the same time, an expert from Schaeffler Canada solved the problem with the take-up pulleys. He developed a special housing for a larger shaft size and bearing without changing the critical dimensions. So no changes were needed to existing mounts. The new X-life bearings and the special housing allowed the system to increase its capacity by 50% without any large investments for rebuilding the existing system being necessary. The problems affecting the take-up pulleys, which led to frequent failures, were eliminated, and greater system availability was assured. Thanks to the local expertise in the Schaeffler Technology Center and networking with experts around the world, it was possible to quickly find the optimum solution for the customer.

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Your Contacts in the Mining Equipment Association Joachim Schmid

Klaus Stöckmann

Phone: + 49 69 6603-1261 Fax: + 49 69 6603-2261 Email: [email protected]

Economy and statistics, trade fairs, markets Asia and Australia Phone: + 49 69 6603-1270 Fax: + 49 69 6603-2270 Email: [email protected]

Helmut Schgeiner

Monika Bind

Technology, standardization and research, markets Europe, Africa, USA and Canada Phone: + 49 69 6603-1680 Fax: + 49 69 6603-2680 Email: [email protected]

CIS and Russia Phone: + 49 69 6603-1262 Fax: + 49 69 6603-2262 Email: [email protected]

Alessandro Colucci

Yvonne Golle

Latin America Phone: + 49 69 6603-1254 Fax: + 49 69 6603-2254 Email: [email protected]

Phone: + 49 69 6603-1577 Fax: + 49 69 6603-2577 [email protected]

Alexandra Landgraf

Rajesh Nath

Phone: + 49 69 6603-1577 Fax: + 49 69 6603-2577 Email: [email protected]

VDMA Representative Office India Phone: + 91 33 2321-9522/7391 Fax: + 91 33 2321-7073 Email: [email protected]

Stephanie Heydolph

Thomas Junqueira Ayres Ulbrich

Managing Director

Director

Director Markets

Assistance

Chief Representative

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Manager Markets

Assistance

Chief Representative

VDMA Representative Office China Phone: + 86 10 87730212-808 Fax: + 86 10 877302-09 Email: [email protected]

Chief Representative

Volkmar Clauß

Holger Wittich

VDMA Representative Office Russia Phone: + 7 499 41803-71 Fax: + 7 499 41803-72 Email: [email protected]

VDMA Representative Office Japan Phone: + 81 3 3363-6632 Fax: + 81 3 3363-7582 Email: [email protected]

Chief Representative

VDMA MINING SUPPLEMENT

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VDMA Representative Office Brazil Phone: + 55 11 430580-42/-43 Fax: +55 11 3078 4335 Email: [email protected]

Chief Representative

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ABB ABEL AEM ALIMAK HEK Andritz Ritz Apollo Atlas Copco MCT AUMUND AViTEQ BARTEC BAT Bauer Maschinen Becker Mining Systems Bell Equipment BEUMER BHS-Sonthofen Bochumer Eisenhütte BRÄUTIGAM Caterpillar Global Mining CFT CIV PRÄZISIONSTECHNIK Cyrus DAT Deilmann-Haniel Mining Systems DEUTZ DMT Döpke Dräger Safety DÜCHTING Durum •

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Sh a f t De sinki ep ng Ro well d ad w rill Ro ay d ing e o f s rivi qu Ext uppo ng/H ipmen rac rt/S ead t Ext tion haft ing rac (lon & Ven tion gwa roadw til (ve ll) ays Sto ation in, ro w in & ai om & r-c Ext g on pilla ra d c i tio r) Ext tion i nin n r a g o c Sp tion pen p eci in o its a De l eq pen (con w at uipm pits tinu Bla ering ent (truc ous) k f s ( o / u t s r i Co ng eq nderg open hove nve l) rou ui p Sh ying pmen nd & its a & o ft pen h t Win wind aula pit ch ing ge ) Tr es & equ unde a c kl ho ipm rg Pre ess u ists ent round p n a d Cru ratio ergro un sh n p Siz ers & lants d veh ing icle m s Sor equ ills ipm ti n en D ge e wa quip t t Bri ering ment q u e , pr De tting oport du ion & g s i De ting, ranul ng, m w at ixi a i o t wa Co ering ter tr n equ ng eq k ipm . e e p a l o Con ven ant tmen ent pla t ti n Fe uous nt eq e u d ip in co Sto g & nveyo ment w r c i & k t p Dri ile e hdraw comp vin qui on al Co g agg pmen equi ents nt pm t re r o ent Pow l equ gates ipm e r Co supp ent m ly m Pn unic eu ati m o Co atic n, n a m & vig p Acc resso hydra ation r u e s l s i ct Min sories ool s ,w e S Se afet ear p r vic y art s Co es n s u Sof lting /E tw a re ngin eer ing

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EEP Eickhoff Eirich EnviroChemie FAM FELUWA Pumpen FLSmidth Wadgassen FLSmidth Wiesbaden GEA Westfalia Separator GMH Gruppe Getriebebau Nord GHH GKN Stromag GOTHE GreCon GTA Habermann Hammelmann Hauhinco HAVER NIAGARA HAWE Hydraulik Hazemag & EPR H+E Logistik HADEF HEINRICH DE FRIES hema Herrenknecht Hese Hilti Howden HYDAC •

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Sh a f t De sinki ep ng R well d o ad w rill Ro ay d ing e o f s rivi qu Ext uppo ng/H ipmen rac rt/S ead t Ext tion haft ing rac (lon & Ven tion gwa roadw til (ve ll) ays Sto ation in, ro w in & ai om & r-c Ext g on pilla ra d c i tio r) Ext tion i nin rac n o g Sp tion pen p eci in o its a De l eq pen (con w at uipm pits tinu Bla ering ent (truc ous) k f s ( o / u t s r i Co ng eq nderg open hove nve l) rou ui p Sh ying pmen nd & its a & o ft pen h t Win wind aula pit ch ing ge ) Tra es & equ unde ckl ho ipm rg Pre ess u ists ent round p n a d Cru ratio ergro un sh n p Siz ers & lants d veh ing icle m s Sor equ ills ipm t i n en D ge e wa quip t t Bri ering ment q u e , pr De tting oport du ion & g s i De ting, ranul ng, m w a ixi t a i o t wa Co ering ter tr n equ ng eq k ipm . e e p a l o Con ven ant tmen ent pla t ti n Fe uou nt eq s e u d ip in co Sto g & nveyo ment w r c i & k t p Dri ile e hdraw comp vin qui on al Co g agg pmen equi ents nt pm t re r o ent Pow l equ gates ipm e r Co supp ent m ly m Pn unic eu at i m o Co ati n, n c a m & vig p Acc resso hydra ation r u e s l s i ct Min sories ool s , e w S Se afet ear p r vic y art s Co es n s u Sof lting /E tw a re ngin eer ing

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IAG MAGNUM ITI JÖST KAMAT Kennametal Kleemann Komatsu KÖPPERN Krummenauer KSB Liebherr Loesche Lurgi Air Liquide Global E&C Solutions MAHLE marco MATO MBE Coal & Minerals MTU J.D. Neuhaus Nilos oddesse Outotec Paus PFISTER WAAGEN PFREUNDT PLARAD PRAKLA Preinfalk Pumpentechnik Erkrath Putzmeister • •

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Sh a f t De sinki ep ng Ro well d a d w rill Ro ay d ing e of ri q v u s i Ext uppo ng/H ipmen r t a c rt/S ead Ext tion haft ing (lo ra & c n Ven tion gwa roadw til (ve ll) ays Sto ation in, ro w in & ai om & r-c Ext g ond pilla ra c i t ion r) Ex tion t ing r ac in o Sp tion pen p e i c i a n o its De l equ pen p (cont w i nu i a p t m its Bla ering ent (truc ous) k for s ( u t i op /sho C ng nd o nve equi ergro en p vel) u Sh ying pmen nd & its a & t o f t p h en Win wind aula pit ch ing ge ) Tra es & equ unde ipm rg c k l ho Pre ess u ists ent round p n a d Cru ratio ergro un sh n p Siz ers & lants d veh i icle ng m s Sor equ ills tin ipm De g eq ent w at uip Bri ering ment q u e , pr De tting oport du s & g ion i De ting, ranul ng, m wa ati ixi o t wa Co erin ter n eq ng eq t g r k e e p a uipm . l o Con ven ant tmen ent t t i n pla Fee uous nt eq u d ip i n co Sto g & nveyo ment w r c i & k t p Dri ile e hdraw comp vin qui on al C g a pm eq en o ntr ggre ent uipm ts o ent Pow l equ gates ipm er Co supp ent mm ly Pn unic eum ati o Co atic n, na mp & vig Ac ress hydr ati o c r e s aulic on s too Min sories ls eS ,w Ser afet ear p vic y art s Co es nsu Sof lting twa /En g r i e nee rin g

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Rensmann RWE Power SAMSON Sandvik Central Europe Sandvik Crushing Tech. SCHADE Schaeffler Technologies Schalker Eisenhütte Schopf Schulte Strathaus SIEMAG Tecberg Siemens STEINERT TAKRAF THIELE Thomas Magnete ThyssenKrupp Resource, Essen ThyssenKrupp Resource, Enningerloh ThyssenKrupp Resource, St. Ingbert TLT-Turbo TML Technik URACA Vattenfall Europe Mining Völkmann Voith Turbo WELLER WILO SE Wirtgen •

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GERMAN VENDOR MATRIX

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ABB Automation GmbH Geschäftsbereich Open Pit Mining Gaglower Str. 17 - 18 03048 Cottbus Web: www.abb.com/mining

ABEL GmbH & Co KG Abel-Twiete 1 21514 Büchen Web: www.abel.de

Becker Mining Systems AG Barbarastr. 3 66299 Friedrichsthal Web: www.becker-mining.com

Atlas Copco MCT GmbH Langemarckstr. 35 45141 Essen Web: www.atlascopco.de

AUMUND-Fördererbau GmbH Saalhoffer Str. 17 47495 Rheinberg Web: www.aumund.com

Bell Equipment (Deutschland) GmbH Willy-Brandt-Straße 4-6 36304 Alsfeld Web: www.bellequipment.de

BEUMER Maschinenfabrik GmbH & Co KG Oelder Str. 40 59269 Beckum Web: www.beumer.com

AEM -Anhaltische Elektromotorenwerk Dessau GmbH Daheimstr. 18 06842 Dessau-Rosslau Web: www.aemdessau.de

AViTEQ Vibrationstechnik GmbH Im Gotthelf 16 65795 Hattersheim Web: www.aviteq.de

Alimak Hek GmbH Frauenbrunner Str. 25 75031 Eppingen Web: www.alimakhek.de

BARTEC Sicherheits- und Schaltanlagen GmbH Holzener Str. 35 - 37 58708 Menden Web: www.bartec-mining.com

BHS-Sonthofen GmbH An der Eisenschmelze 47 87527 Sonthofen Web: www.bhs-sonthofen.de

BAT Bohr- und Anlagentechnik GmbH Borntalstr. 11 36460 Merkers Web: www.bat-maschinenbau.de

BOCHUMER EISENHÜTTE HEINTZMANN GMBH & Co KG Klosterstr. 46 44787 Bochum Web: www.be-heico.de

ANDRITZ Ritz GmbH Güglingstr. 50 73529 Schwäbisch Gmünd Web: www.andritz.com

Apollo Maschinenbau GmbH Grünauer Fenn 44 14712 Rathenow Web: www.apollo-maschinenbau.de Bauer Maschinen GmbH BAUER-Str. 1 86529 Schrobenhausen Web: www.bauer.de

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BRÄUTIGAM Gear & Mining Tech GmbH & Co KG Am Schürmannshütt 8 - 18 47441 Moers Web: www.braeutigam-group.com

VDMA MINING SUPPLEMENT

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2014

CATERPILLAR Global Mining Europe GmbH Industriestr. 1 44534 Lünen Web: www.mining.cat.com

CATERPILLAR Global Mining HMS GmbH Karl-Funke-Str. 36 44149 Dortmund Web: www.mining.cat.com

CFT GmbH Compact Filter Technic Beisenstr. 39 - 41 45964 Gladbeck Web: www.cft-gmbh.de

CIV Präzisionstechnik GmbH Tuchmacherweg 11 39288 Burg Web: www.civ-burg.de

Cyrus GmbH Schwingtechnik Am Stadion 40 45659 Recklinghausen Web: www.cyrus-germany.com

DAT Bergbautechnik GmbH Am Schornacker 61 46485 Wesel Web: www.dat-bergbau.de

2014

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Deilmann-Haniel Mining Systems GmbH Haustenbecke 1 44319 Dortmund Web: www.dhms.com

DEUTZ AG Ottostr. 1 51149 Köln Web: www.deutz.com

DMT GmbH & Co KG Am Technologiepark 1 45307 Essen Web: www.dmt.de

Maschinenfabrik Heinrich Döpke GmbH Stellmacherstr. 10 26506 Norden Web: www.doepke-gmbh.de

Dräger Safety AG & Co KGaA Revalstr. 1 23560 Lübeck Web: www.draeger.com

DÜCHTING PUMPEN Maschinenfabrik GmbH & Co KG Wilhelm-Düchting-Str. 22 58453 Witten Web: www.duechting.com

VDMA MINING SUPPLEMENT

DURUM Verschleißschutz GmbH Carl-Friedrich-Benz-Str. 7 47877 Willich Web: www.durmat.com

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EEP Elektro-Elektronik Pranjic Am Luftschacht 21 45886 Gelsenkirchen Web: www.eep.de

Eickhoff Bergbautechnik GmbH Hunscheidtstr. 176 44789 Bochum Web: www.eickhoff-international.com

Maschinenfabrik Gustav Eirich GmbH & Co KG Walldürner Str. 50 74736 Hardheim Web: www.eirich.com

EnviroChemie GmbH In den Leppsteinswiesen 9 64380 Rossdorf Web: www.envirochemie.com

FAM Förderanlagen Magdeburg und Baumaschinen GmbH Sudenburger Wuhne 47 39112 Magdeburg Web: www.fam.de

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FELUWA Pumpen GmbH Beulertweg 10 54570 Mülenbach Web: www.feluwa.com

FLSmidth Wadgassen GmbH Karl-Koch-Str. 1 66787 Wadgassen Web: www.flsmidth.com

FLSmidth Wiesbaden GmbH Am Klingenweg 4a 65396 Walluf Web: www.flsmidth.com

GEA Westfalia Separator Group Werner-Habig-Str. 1 59302 Oelde Web: www.westfalia-separator.com

Getriebebau Nord GmbH & Co KG Getriebebau-Nord-Str. 1 22941 Bargteheide Web: www.nord.com

GHH Fahrzeuge GmbH Emscherstr. 53 45891 Gelsenkirchen Web: www.ghh-fahrzeuge.de

VDMA 30

GMH Gruppe Neue Hüttenstraße 1 49124 Georgsmarienhütte Web: www.gmh-gruppe.de

El.-Ap. GOTHE & Co GmbH Kruppstr. 196 45472 Mülheim Web: www.gothe.de

GreCon Greten GmbH & Co KG Hannoversche Straße 58 31061 Alfeld Web: www.grecon.com

GTA Maschinensysteme GmbH Loikumer Rott 23 46499 Hamminkeln Web: www.gta.eu

H + E Logistik GmbH Josef-Baumann-Str. 18 44805 Bochum Web: www.helogistik.de

HADEF HEINRICH DE FRIES GmbH Hebezeugfabrik Gauss Str. 20 40235 Düsseldorf Web: www.hadef.de

Hammelmann Maschinenfabrik GmbH Zum Sundern 13 - 21 59302 Oelde Web: www.hammelmann.com

Hauhinco Maschinenfabrik GmbH & Co KG Beisenbruchstr. 10 45549 Sprockhövel Web: www.hauhinco.com

HAVER NIAGARA GmbH Robert-Bosch-Str. 6 48153 Münster Web: www.haverniagara.com

HAWE Hydraulik SE Streitfeldstr. 25 81673 München Web: www.hawe.de

Arthur Habermann GmbH & Co KG Goethestr. 12 58453 Witten Web: www.habermann-gmbh.de HAZEMAG Mining Brokweg 75 48249 Dülmen Web: www.mining.hazemag.de

VDMA MINING SUPPLEMENT

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2014

hema electronic GmbH Röntgenstraße 31 73431 Aalen Web: www.hema.de

IAG MAGNUM GmbH Bessemerstr. 1 49084 Osnabrück Web: www.iag-magnum.de

ITI GmbH Schweriner Str. 1 01067 Dresden Web: www.itisim.com Herrenknecht AG Schlehenweg 2 77963 Schwanau Web: www.herrenknecht.de JÖST GmbH + Co KG Gewerbestr. 28 - 32 48249 Dülmen Web: www.joest.com HESE Maschinenfabrik GmbH Magdeburger Str. 16a 45881 Gelsenkirchen Web: www.hese.de KAMAT PUMPEN GmbH & Co KG Salinger Feld 10 58454 Witten Web: www.kamat.de Hilti Deutschland AG Hiltistr. 2 86916 Kaufering Web: www.hilti.com Kennametal AMSG GmbH Max-Planck-Str. 13 61381 Friedrichsdorf Web: www.kennametal.com Howden Ventilatoren GmbH Stubentalstr. 44 89518 Heidenheim Web: www.howden.com

Kleemann GmbH Manfred-Wörner-Straße 160 73037 Göppingen Web: www.kleemann.info

Komatsu Mining Germany GmbH Buscherhofstr. 10 40599 Düsseldorf Web: www.komatsu-mining.de

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Maschinenfabrik KÖPPERN GmbH & Co KG Königsteiner Str. 2 45529 Hattingen Web: www.koeppern.com

Krummenauer GmbH & Co KG Wellesweilerstr. 95 66538 Neunkirchen Web: www.krummenauer.de

KSB Aktiengesellschaft Pumpen & Anwendungen Feststofftransport Johann-Klein-Str. 9 67227 Frankenthal Web: www.ksb.com

Liebherr-Mining Equipment SAS 49 rue Frédéric Hartmann 68025 Colmar, France Web: www.liebherr.com

LOESCHE GmbH Hansaallee 243 40549 Düsseldorf Web: www.loesche.com

HYDAC INTERNATIONAL GmbH Industriestraße 66280 Sulzbach/Saar Web: www.hydac.com

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VDMA MINING SUPPLEMENT

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LURGI GmbH AIR LIQUIDE GLOBAL E&C SOLUTIONS Lurgiallee 5 60439 Frankfurt Web: www.engineeringsolutions.airliquide.com

MAHLE Industriefiltration GmbH Schleifbachweg 45 74613 Öhringen Web: www.mahle-industry.com

J. D. NEUHAUS GmbH & Co KG Windenstr. 2 - 4 58455 Witten Web: www.jdngroup.com

PFREUNDT GmbH Robert-Bosch-Str. 5 46354 Südlohn Web: www.pfreundt.de

PLARAD Maschinenfabrik Wagner GmbH & Co KG Birrenbachshöhe 53804 Much Web: www.plarad.com Nilos GmbH & Co KG Reisholzstr. 15 40721 Hilden Web: www.nilos.com PRAKLA Bohrtechnik GmbH Moorbeerenweg 3 31228 Peine Web: www.prakla.de

marco Systemanalyse und Entwicklung GmbH Hans-Böckler-Str. 2 85221 Dachau Web: www.marco.de

MATO GmbH & Co KG Benzstr. 16 - 24 63165 Mühlheim Web: www.mato.de

MBE Coal & Minerals Technology GmbH Gottfried-Hagen-Str. 20 51105 Köln Web: www.mbe-cmt.com

oddesse Pumpen- und Motorenfabrik GmbH Am Pappelwald 12 39387 Oschersleben Web: www.oddesse.de WOLFGANG PREINFALK GMBH Im Oberen Werk 4 66386 St. Ingbert Web: www.preinfalk.de

Outotec (Filters) GmbH Eschweilerstr. 101 - 109 52477 Alsdorf Web: www.outotec.com

Hermann Paus Maschinenfabrik GmbH Siemensstr. 1 - 9 48488 Emsbüren Web: www.paus.de

PFISTER WAAGEN BILANCIAI GMBH Linker Kreuthweg 9 86444 Affing-Mühlhausen Web: www.pfisterwaagen.de

Pumpentechnik Erkrath GmbH + Co KG Max-Planck-Str. 28 40699 Erkrath Web: www.pumpentechnik-erkrath.de

Putzmeister Solid Pumps GmbH Max-Eyth.Str. 10 72631 Aichtal Web: www.pmsolid.com

MTU Friedrichshafen GmbH Maybachplatz 1 88045 Friedrichshafen Web: www.mtu-online.com

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VDMA MINING SUPPLEMENT

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2014

Fritz Rensmann GmbH & Co Maschinenfabrik Bünnerhelfstr. 33 44379 Dortmund Web: www.rensmann.com

RWE Power International RE GmbH Stüttgenweg 2 50935 Köln Web: www.rwepi.com or www.rwe-mec.com

SAMSON AG MESS- UND REGELTECHNIK Weismüllerstr. 3 60314 Frankfurt www.samson.de

Sandvik Mining & Construction Central Europe GmbH Hafenstr. 280 45356 Essen Web: www.sandvik.com

Schaeffler Technologies AG & Co KG Georg-Schäfer-Straße 30 97421 Schweinfurt Web: www.schaeffler.de/ rohstoffgewinnung_verarbeitung

Schalker Eisenhütte Maschinenfabrik GmbH Hunscheidtstr. 176 44789 Bochum Web: www.schalke.eu

TAKRAF GmbH Torgauer Str. 336 04347 Leipzig Web: www.takraf.com

F. E. Schulte StrathausGmbH & Co KG Fördertechnik - Dichtungssysteme Runtestr. 42 59457 Werl Web: www.schulte-strathaus.de

THIELE GmbH & Co KG Werkstr. 3 58640 Iserlohn Web: www.thiele.de

Siemens AG Schuhstr. 60 91052 Erlangen Web: www.siemens.com/mining

SCHADE Lagertechnik GmbH Dorstener Str. 360 44653 Herne Web: www.schade-lagertechnik.de

2014

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VDMA MINING SUPPLEMENT

VDMA

GKN Stromag AG Hansastr. 120 59425 Unna Web: www.stromag.com

Schopf Maschinenbau GmbH Parkstr. 19 - 21 73760 Ostfildern Web: www.schopf-mining.com

SIEMAG TECBERG GmbH Kalteiche-Ring 28-32 35708 Haiger Web: www.siemag-tecberg.com Sandvik Mining & Construction Crushing Technology GmbH Kölner Str. 94 51702 Bergneustadt Web: www.sandvik.com

STEINERT Elektromagnetbau GmbH Widdersdorfer Str. 329 - 331 50933 Köln Web: www.steinert.de

Thomas Magnete GmbH San Fernando 35 57562 Herdorf Web: www.thomas.magnete.com

ThyssenKrupp Resource Technologies GmbH Materials Handling Ernst-Heckel-Str. 1 66386 St Ingbert-Rohrbach Web: www.thyssenkrupp-resourcetechnologies.com

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ThyssenKrupp Resource Technologies GmbH Mineral Processing Schleebergstr. 12 59320 Ennigerloh Web: www.thyssenkrupp-resourcetechnologies.com

ThyssenKrupp Resource Technologies GmbH Mining ThyssenKrupp Allee 1 45143 Essen Web: www.thyssenkrupp-resourcetechnologies.com

TLT-Turbo GmbH Gleiwitzstr. 7 66482 Zweibrücken Web: www.tlt-turbo.com

TML Technik GmbH Daimlerstr. 14 - 16 40789 Monheim Web: www.tml-technik.com

Maschinenfabrik Völkmann GmbH Rohdesdiek 32-42 44357 Dortmund Web: www.voelkmann.de

URACA GmbH & Co KG Sirchinger Str. 15 72574 Bad Urach Web: www.uraca.de

WELLER Pumpen GmbH Westicker Str. 44 - 46 59174 Kamen Web: www.weller-pumpen.de

Vattenfall Europe Mining AG Mining Consulting Vom-Stein-Str. 39 03050 Cottbus Web: www.vattenfall.de

WILO SE Nortkirchenstr. 100 44263 Dortmund Web: www.wib.com

Voith Turbo GmbH & Co KG Voith-Str. 1 74564 Crailsheim Web: www.voith.com

Wirtgen GmbH Reinhard-Wirtgen-Str. 2 53578 Windhagen Web: www.wirtgen.de

ADVERTISING INDEX Beumer Mascheninfabrik GmbH & Co KG................................................................................................................VDMA 22 Erlau AG ..................................................................................................................................................................VDMA 17 Hazemag & EPR GmbH ......................................................................................................................................VDMA 15, 18 Kamat Pumpen GmbH & Co KG ................................................................................................................................VDMA 13 Liebherr ....................................................................................................................................................................VDMA 7 RWE Power International RE GmbH ..........................................................................................................................VDMA 5 Tognum AG (MTU) ......................................................................................................................................................VDMA 2 Wolfgang PrienFalk GmbH ......................................................................................................................................VDMA 21

VDMA 34

VDMA MINING SUPPLEMENT

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2014

Supplier news

New life for old Sandvik bolter miners BOLTER miners used in underground coal mining have a tough life in the harsh conditions in which they operate. After just four to five years of life underground, they can look almost worn out, however Sandvik’s MB series of bolter miners have the inherent durability and strength that allows them to be completely rebuilt to asnew condition. “The Sandvik MB series of bolter miners are the leading machines in underground coal mine longwall development applications, with more than 50 operating in mines A Sandvik MB bolter miner after rebuild. in NSW and Queensland,” said Sandvik’s project ing and improvements since introduction. “The main models we sell in Australia are our manager Overhauls - Mechanical Cutting, MB650 and MB670 bolter miners – these fit Underground Coal Troy Robertson. “An important element of the economics of with the seam heights for most longwall mines running bolter miners is their ability to be com- looking for bolter miners in their operations,” pletely rebuilt from the ground up a number of said Troy Robertson. “It’s a market segment that’s unique to times during their working lives. “A key part of Sandvik’s service and support Sandvik. As a result of our ongoing engineering offerings for our MB series machines is our design, performance, safety and ergonomics, no capability of carrying out these rebuilds to OEM other supplier has been able to deliver the (original equipment manufacturer) standards, required combination of production, safety and ease of operation. The rule of thumb is that after and with full factory warranty.” Manufactured by Sandvik in Austria, its orig- three rebuilds – with four to six years between inal ABM series dates back to the early 1990s rebuilds – the technology in our MB series has and the range has undergone continuous upgrad- developed to the extent that the price to upgrade

to the latest specifications ceases to become economical. “In addition, compliance requirements are ever-changing and bolter miners have to comply with all the latest safety standards before they can go back underground,” he added. Today, all MB series bolter miner rebuilds in Australia take place in Sandvik’s Heatherbrae facility, near Newcastle, NSW. “We have a dedicated MB series rebuild facility with the ability to take a tired bolter miner and restore it to as-new factory-warranted condition,” Troy Robertson said. The great bulk of the rebuild work is done by trained Sandvik technicians, including the initial mechanical strip-down, engineering, electrical systems, gearboxes, components, bolting systems, and upgrades, followed by re-assembly, function testing, commissioning, painting and detailing. Also included in the rebuild process are updated Link1 parts manuals, revised and updated documentation, operator and maintenance crew training, and plant safety files. “We have sufficient capacity to carry out six full machine rebuilds a year – and if we need to do more, we have the facilities, space and people on call internally to meet additional demands.”

Siemens gear units for BHEL in India SIEMENS Drive Technologies Division will supply large gear units and gear components for vertical mills to Bharat Heavy Electricals Ltd (BHEL) to cover their overall demand in the coming three years. BHEL is a leading manufacturer of mechanical and electrical components for power plant and energy technology based in New Delhi, India. Since India's demand for energy is growing rapidly, coal-fired power plants are constantly being built and expanded. The Flender gear units from Siemens are deployed in vertical mills with an output of 800 and 1000 kW, which are used for coal grinding in the power plants. Siemens says that due to their rugged design, these powerful and reliable drives are ideal for the

harsh ambient conditions in power plants and permit smooth operation. The value of the BHEL order is in the Euro double-digit million range. The Flender gear units consist of a combination of a bevel gear stage with a planetary stage. Siemens says that thanks to the special design it has developed for use in coal grinding, a high power density is achieved and at the same time the forces from the grinding operations are transferred to the foundation via the gear casing. The operating company thus benefits from smooth operation and very fine coal grinding, which is required for efficient combustion. “We see this order as a convincing vote of confidence from BHEL in the reliability of the Flender units and the commitment and cooperation of our

employees,” says Siemens’ Mechanical Drives Segment head Dr Bernhard Hoffmann. BHEL is India’s largest engineering and manufacturing company of its kind engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products, systems and services for the core sectors of the economy, like power, transmission, industry, transportation, renewable energy, oil & gas and defence. BHEL has its headquarters in New Delhi and employs around 49,390 people. It is involved in more than 150 power generation projects. As a leading plant constructor in India, BHEL has already successfully cooperated with Siemens in the past and purchased 60 gear units for vertical mills last fiscal year.

October 2014 l Coal Age Indonesia l 57

Product news

Caterpillar longwall systems for Turkey IN July Caterpillar delivered the first of two complete Cat longwall mining systems to the Soma Eynez East mine of Demir Export AS – Fernas Insaat AS Joint Venture in Turkey. Both longwall systems are designed for longwall top coal caving (LTCC) in a coal seam with an average thickness of 25 metres. Caterpillar is the leading supplier for Turkey’s coal industry with 4 out of 5 longwall underground mining systems in operation. The greenfield underground coal mining project is in the SomaManisa area and is planned for a 15-year mine life. The project A Caterpillar includes 36.5 million tonnes of coal production with the LTCC mining method. The first longwall mining system was due to start production at Eynez East mine in the third quarter and has annual production capacity of 2.7 million tonnes. The coal face has a length of 180 metres. The second longwall will be in operation in six months. “Caterpillar strengthens its position as the premier partner of the Turkish coal mining industry with the installation of the new longwall systems at Soma Eynez East,” says Caterpillar product line manager, longwall mining Martin Wetter. “We are pleased that our longwall equipment will be the workhorse recovering this very thick seam.” Each of the two identical sets of longwall mining equipment includes a Cat EL1000 Shearer, two Cat AFC PF4 Face Conveyors and a Cat BSLPF4 Beam Stage Loader including an SK111 Crusher. Caterpillar will also supply the complete electrical and hydraulic power supply systems as well as the cooling and spraying water supply system, and the complete automation system for

longwall with top coal caving shields. the longwall face. The roof supports for the longwall systems will be provided by Caterpillar (Zhengzhou) Ltd, a Chinese company acquired by Caterpillar in 2012. Each longwall system includes 95 Zhengzhou roof supports with a shield centre of 1.75 metres and an extended height of 3.20 metres, transition and gate end shields, as well as roadway shields for tail and maingate. The roof supports will be equipped with state-of-the-art Cat PMC-R roof support controls. The longwall systems supply agreement also includes extended service provided by Caterpillar. Two six-month contracts for supervision and support for installation, commissioning and operation are part of the package. Borusan Makina Kazakhstan, the Caterpillar dealership for Turkey, Kazakhstan, Azerbaijan, Georgia and Kyrgyzstan, will provide customer support. The LTCC mining method to be employed at the Eynez East mine is a special type of longwall mining applicable to seams thicker than 6 metres.

Conventional longwall equipment has not yet been designed to operate successfully in seams thicker than about 6 metres mining height. LTCC enables increased recovery for only an incremental additional cost. The lower section of the seam is cut by a conventional longwall setup except that each longwall roof support has a longer rear canopy extending past the base into the goaf (also known as gob). The extended rear canopy has a sliding rear canopy fitted into each one. An additional AFC is attached to the rear of the shields and runs directly below the canopy openings. As the face moves forward, the coal left above the section cut by the machine falls onto the extended canopies, providing the goaf is caving normally. The sliding rear canopies are sequentially opened, and the coal falls through onto the rear mounted AFC. The maingate stage loader is extended beyond the face conveyor to enable the rear mounted AFC to discharge coal directly onto it and carry coal to the maingate conveyor belt system. Caterpillar (Zhengzhou) designs, manufactures, sells and supports mining equipment used in underground coal longwall mining and has become one of China’s market leaders in roof support systems, which are the major component of the longwall mining system by size, weight and value. Caterpillar (Zhengzhou) offers a complete range of tailor-made roof supports under the Zhengzhou brand for operations ranging up to 7.3 metres. In addition to the conventional roof supports, Caterpillar (Zhengzhou) also offers different longwall top coal caving systems.

RAG brings expertise to China GERMAN-based RAG Mining Solutions is playing its part in helping to bring Chinese mining into the 21st Century. RAG experts have been spending considerable time in China to introduce leading technology as well as training staff and management of Chinese mining operations. At the end of May the chairman of the board of RAG Mining Solutions, Professor Martin Junker, paid a visit to the Chinese mining company Shandong Energy, accompanied by the managing director of RAG Mining Technology (Beijing) Ltd Roland Hecken. Amongst others, they also met with Shandong Energy general manager Weimin Li and his chief engineer Minghua Zhai. Discussions revolved around a possible cooperation in mining technology. The RAG delegation also took a tour of the Longgu and Tangkou mines in the company of Minghua Zhai. They inspected road-header drifts and discussed improvement options for their use 58 l Coal Age Indonesia l October 2014

and the use of roof-bolting. Another topic was the improvement of transport by way of overhead monorails and the transport of building materials. Training exercises conducted by RAG experts in China within the past 12 months have included health, safety and environment protection (HSE) seminars. Late last year RAG experts in this field conducted two seminars for Chinese experts and management for safety at work of Kailuan Coal Group on-site in China. The Chinese group of companies aims to update their knowledge in order to decrease accident risks in their company. The exchange of experiences is becoming more and more important in this context. The seminars lasted five days each and included various issues presented by the HSE experts such as fire and explosion protection, technical dust suppression, mine ventilation and accidental black spots in road-headings as well as in coal

winning and logistics. They also presented modern methods of teamwork and devices. RAG Mining Solutions Health, Safety and Environment Protection head Dieter Mantwill says, “We enjoy a very good reputation thanks to our long-time experience nationally and internationally. Thus we not only cooperate with Chinese but also with Russian and Vietnamese mining companies. “Activities in foreign countries are only successful when you consider the present law as well as the local culture and mindset of the people when knowledge and experiences from the German mining industry are communicated.” The attendance of Kailuan Coal director of safety at work Wenjie Chang at the seminar for managers can be interpreted as a particular acknowledgement. He appreciated both the content and the method of instruction and showed interest in attending further seminars.

Product news

Volvo king of the jungle in Borneo WITH an abundance of coal resources, international power providers are recognizing the potential that lies beneath the wilderness of the Borneo jungle. Korean Electric Power Industrial Development Co, Ltd (KEPID) has joined forces with native coal giant, Hasnur Group, to run a seamless international mining and distribution operation using the most fuel efficient machinery on the market. Banjarmasin, the capital of South Kalimantan in the Indonesian part of Borneo, is on a delta island. Known as the River City because of its numerous waterways, it is surrounded by coalrich jungle and the region has become a hub for mining operations that use the rivers to transport the coal across the Indonesian archipelago. While Indonesia’s mining industry has slumped in recent years, with many pits in Kalimantan drastically reducing or even ceasing operations, the Hasnur Group - established in 1966 by a native Kalimantan entrepreneur - has diversified its service offering and customer base to withstand the decline. The group’s corporate values of health, safety and the environment are reflected in its responsible mining practices, following the Indonesian government’s vision for conservation and sustainability. Mining has been an important part of Borneo’s economic development but it has had a negative impact on the environment in the past. The Hasnur Group uses strategic planning, education and training to responsibly manage operations and contribute to the sustainable development of the island’s economy and conservation of its natural habitats. The company started out in river transportation but the management’s knowledge of the local language and culture meant that it grew into shipyard building and maintenance before more recently moving into coal and iron ore mining. The company then teamed with foreign partners to export its produce worldwide, including South Korea-based electricity provider, KEPID, via its local subsidiary, PT KEPID Technology Indonesia.

World-class fuel efficiency Located at one of the region’s many river ports, 200km from Banjarmasin, PT KEPID Technology handles the coal that arrives from the mine site via truck. At the site five Volvo Construction Equipment (CE) L220G wheel loaders carry crushed coal from stockpiles to the conveyor where it is sent to waiting transporter ships. With the machines in operation 17 hours a day, fuel consumption is of utmost importance to site manager, Lee Kwang Hun, who notes that 40% of the coal handling cost per tonne is diesel. “Having used Volvo equipment at our Tanjung Jati operations in Central Java, we were confident that the fuel consumption would meet our needs,” he explains. “But in fact, it exceeded our expectations with our wheel loaders using around 20

Part of PT KEPID Technology’s fleet of Volvo L220G wheel loaders used to carry crushed coal. litres per hour. We are very happy with this as the fuel savings significantly impact our bottom line.” Experienced machine operator SA Juki, has operated many wheel loader brands throughout his career. He says, “Especially in a load and carry application, Volvo machines consume more than 40% less fuel than other brands, while in a dozing application, it uses less than 20 litres per hour. The fuel consumption is impressively low.”

Full loads around the clock PT KEPID Technology operations manager Daniel Krismantoro has been so impressed with the Volvo wheel loaders’ performance during their first 600 hours of operation since he took delivery in May that Hasnur Group is now considering switching its large fleet over to the Volvo brand. “One unique feature of Volvo loaders that’s very relevant to coal handling operations is the TP linkage,” he says. “By keeping the up and down movement completely parallel, there is no spillage of material during loading. This is a huge benefit over the usual Z-bar linkage.” Krismantoro also purchased a Volvo EC480DL hydraulic excavator and Volvo SD110 compactor to support operations on the site. The excavator is used to trim the coal pile while the compactor keeps the loading and unloading area flat and smooth. “The loaders and excavator are both powered by the Volvo D13 engine and feature other common parts,” he says. “The engine is very powerful, but what is most useful to us is that we can stock the same consumable parts for all our machines.” Transporting spare parts across the widely uninhabited island presents more challenges than the average delivery. While the Indonesian government is improving infrastructure in the region, the majority of the existing roads are privately built, owned and maintained by the coal mining

conglomerates themselves. Many access routes are not sealed or covered in potholes, and speed is restricted to 40km/h in many parts. When travelling long distances journeys can take up to five times longer than on sealed roads. PT Volvo Indonesia’s business manager Heri Krisdiyanto explains, “Our dealer network covering Kalimantan, Sulawesi and Maluku – PT Intraco Penta Prima Servis (IPPS) – continually invests in expanding its capabilities to reach remote locations such as this site, but with parts being delivered to Banjarmasin – up to three hours’ drive away – we advise customers to stock some parts on site. By using common parts across our range of construction equipment, we can train on-site maintenance support staff how to keep the machine in top condition, maximizing uptime.”

Looking to the future At the third annual Indonesia Mining 2014 Conference in Bali last February, experts from the industry and associated bodies gave an overview of the current and predicted outlook for the mining industry. While Indonesia continues through a period of political uncertainty until the new government has found its feet, experts anticipate that the coal industry will pick up in the second half of 2015. For PT KEPID Technology, it’s business as usual as coal handling operations at the river port continue. The company will work with its local dealer IPPS to plan for future service and maintenance of its Volvo fleet. “Anticipating any large investments we’ll need to make in the future is very important for our cash flow,” Lee Kwang Hun explains. “The service our dealer offers to help us plan for component exchanges or overhauling the machine is very useful – although a long way off yet. We don’t expect any major costs before 14,000 hours of operation.” October 2014 l Coal Age Indonesia l 59

Product news

Surface miners successful at Gevra INDIA is the third largest coal supplier in the world with the largest producer in India being Coal India. Its contractual partner Sainik Mining and Allied Services Limited operates a total of 21 Wirtgen surface miners with 10 2200 SM in operation at the 530sqkm Gevra Mine in the state of Chhattisgarh. Use of these surface miners has proved very productive for the company, backed up by the local Wirtgen Group subsidiary’s customer service. The subsidiary provides individually tailored service contracts which help guarantee security in planning and coal mining operation. The vertical coal seams in Gevra Mine require a selective mining method. Additionally, 90% of the cut coal ought to have a maximum particle size of 100mm. This is why since 1999 the mine operators have gradually switched mining activities from drilling and blasting to Wirtgen surface mining. Presently, 80% of the coal is being mined using this environmentally-friendly technique and another 20% via conventional methods. The mine operators are planning, however, to shift to 100% surface mining of coal within the next two years. In Gevra, surface mining has proven to be clean, safe and more environmental friendly as well. In the mine, windrowing turned out to be the optimal mining method and thanks to this technique, it is easier to check the material quality. Additionally, coal can be mined in the most economical way. With windrowing, the cut coal is placed directly behind the machine, between the crawlers, without the use of a loading conveyor. This allows material to be cut independently of the loading process, although the coal has to be

Thanks to windrowing, lower-quality coal can be detected and rejected more efficiently by the Wirtgen surface miner. loaded separately via front loader later on. As a The service contract especially tailored to the result, each 2200 SM, with a cutting width of 3.8 Gevra Mine guarantees that two experienced metres and a cutting depth of 300mm, can mine Wirtgen engineers are available there all the time roughly 15,000 tonnes of coal. during operation. The annual capacity of the coal mine is an They provide support for all necessary mainteenormous 80 million tonnes, 90% of which is nance activities relating to the surface mining being used as thermal coal for power generation fleet, including machine repairs, preventive mainin thermal power plants. tenance measures, inspection of certain machine Surface miners from Wirtgen are the ideal parts, training of machine operators, etc. The solution to mine the large deposit of more than 10 Wirtgen experts also make sure all spare parts billion tonnes as efficiently as possible. needed are kept in stock.

Central control point for radio fleets CRITICAL communications company Tait Communications has launched EnableFleet, an innovative solution that it says will revolutionize fleet management for mining, and oil and gas organizations across the world. EnableFleet gives communication managers the power to configure and manage their radio fleets from a central point of control across DMR and P25 networks. Tait product manager Dan Manton says advances in software have changed the way we live our lives - from how we communicate, to how we manage money, to how we view pictures. In the same way, EnableFleet will change the way mission-critical businesses manage their radio fleets. “In the past, radio managers kept track of their terminal fleet using spreadsheets and other manual systems that were difficult to maintain, lacked data integrity and were labour intensive,” says Dan Manton. “EnableFleet offers a single, secure location 60 l Coal Age Indonesia l October 2014

for storing information about your radio fleet, which can be accessed anytime, from anywhere with guaranteed up-to-date and accurate information in real time. “In addition to these great benefits, EnableFleet automatically detects and applies updates to your radio fleet. “In fact, anyone with the right Tait EnableProtect Advanced System Key can update their radio fleet, ensuring no unauthorized users can tamper with your network. EnableFleet also makes it remarkably simple to create and export insightful reports.” EnableFleet is part of the Tait Enable suite of products that Tait has developed to help organizations manage and monitor their networks and fleet more efficiently. Dan Manton adds: “Every once in a while you get to be part of something truly innovative. We’re excited to launch EnableFleet and we’re convinced it will make radio networks stronger, smarter and simpler.”

Tait Communications’ clients protect communities, power cities, move citizens, harness resources and save lives all over the world. Tait works with them to create and support the critical communication solutions they depend on to do their jobs. Digital wireless communication forms the central nervous system of everything Tait does. It says, “Around this resilient, robust core we design, develop, manufacture, test, deploy, support and manage innovative communication environments for organizations that have to put their total trust in the systems and people they work with. “We’ve worked hard to develop genuine insight into our clients’ worlds, and have pursued engineering, operational and services excellence for more than 40 years. This understanding, and our belief in championing openstandards technology, means we can give our clients the best possible choice and value to achieve the human outcomes they’re driven by.”

Events - Sumatra Miner

A showcase for mining in Sumatra WITH Sumatra striving to benefit from the potential of its vast coal and mineral resources but hindered by the global mining downturn, volatile coal prices, lack of capital investment, poor infrastructure, a trend to move away from low ranking coal and new technologies to upgrade this coal, the timing of the 2014 Sumatra Miner conference and exhibition is ideal. As the second largest producer of coal in Indonesia and facing the prospect of further growth and development from coal and mineral deposits, Sumatra is well placed to play a much bigger role in Indonesia’s economy and Sumatra Miner 2014 will examine ways to realize the region’s potential. The event will be held at Aryaduta Hotel in Palembang from October 22-24, 2014, and is being organized by Mining Media International, publishers of The ASIA Miner and Coal Age Indonesia. The event is sponsored by one of Sumatra’s most successful miners G-Resources, which has the operating Martabe Gold-Silver Project on the island. Sumatra Miner 2014 is being held in cooperation with the special task force for upstream oil and gas business activities in Indonesia - SKK Migas, Flexco, Beijing HRN International Commercial and Exhibition Co, the South Sumatran provincial government, the Association of Indonesian Mining Services (Aspindo) and the Centre for Geological Resources. The Sumatran people gave always been recognized as leaders and their ability to foreshadow the needs of their communities helps drive their economies. Sumatran leaders during the Dutch occupation of the archipelago spurred the country to not only develop and establish a national language but more significantly to Indonesia’s independence. It is with such gusto that they are endeavouring to establish excellence in mining in the region as can be evidenced by the success of GResources’ Martabe operations. The region abounds with potential for investment in mining, oil and gas, and the energy sector generally. Sumatra Miner 2014 will elucidate these opportunities while simultaneously revealing the potential of innovative technologies and services from domestic and international companies, including those of the Australian METS sector that could help establish South Sumatra as the centre of excellence for mining, oil and gas, and energy in Indonesia. Sumatra Miner will examine the mining industry in Sumatra, focusing primarily on coal but also including other resources such as gold and copper. It will also look at plans to provide more infrastructure in South Sumatra to benefit the

A conveyor at a PT Bukit Asam coal mine in South Sumatra. Bukit Asam is a Sumatran success story. industry and the region’s economy. Conference topics will include: • Industry challenge and opportunities; • Operational excellence; • Productivity improvements; • Health and safety; • Technology and information management; • Maintenance strategies; and • Environmental compliance. An exhibition will be held in conjunction with the conference. This will provide a showcase for key players in Sumatra’s coal, mining, energy, and oil & gas industries as well as for international companies wishing to reach the mining industry in Sumatra and Indonesia with the latest mining technology. Producers and explorers in Sumatra are invited to showcase their success by participating in the exhibition while equipment and service providers are also invited to exhibit in order to keep participants abreast of new mining equipment, services and technologies. Delegates will include coal mining companies, industrial coal consumers, coal preparation operators, equipment OEMs, contract operators,

power plant fuel managers, infrastructure contractors, transport and logistics operators, transshipment and export terminals, conveyor contractors and operators, EPC companies, dust control companies, specialist coal environmental contractors, and stockpile experts. Although Sumatra has also been impacted by the economic downturn which has hit the global mining industry hard, exacerbated by a number of policies introduced this year by the Indonesian Government, the island’s mining industry has a very bright future and the Sumatra Miner conference will demonstrate how and why this is the case. Sumatra Miner is a platform for information sharing and collaborative discussions for those who are involved in all aspects of the mining lifecycle. The event will acknowledge the crossfertilization of knowledge and practice as well as the knowledge/practice transfer between the mining, oil and gas, and energy sectors. The Sumatra Miner conference and exhibition will coincide with a Coal Club Indonesia event on the evening of October 22 with a guest speaker. October 2014 l Coal Age Indonesia l 61

Events

Expert speakers for Sumatra Miner A NUMBER of expert speakers will participate in the Sumatra Miner conference in Palembang from October 22-24, 2014. They include:

Eiichiro Makino K-Coal Co Ltd, PT K-Coal International Indonesia, K-Coal Canada and K-Coal Australia president, and K-Coal China chairman. He has been assigned to implement various projects since graduating from Hokkaido University in Japan. He helped implement the Brown Coal Liquefaction (BCL) pilot plant project in Victoria, Australia, and has been involved in coal utilization projects and development of alternative energy sources globally. He has been involved with low rank coal utilization projects such as BCL, an Upgraded Brown Coal (UBC) pilot plant project, big-scale lignite mine mouth IPP project and a new lignite gasification development project, primarily in Indonesia. He also has been developing a Carbon Capture Storage (CCS) project and a lignite upgrading project for effective, economical and environmentally friendly utilization of lignite. He is developing the lignite upgrading process in Asia in conjunction with Clean Coal Technology and is also developing a CO2 ground monitoring system for advancing CCS projects around the World.

Bambang Triharyono PT Pendopo Energi Batubara general manager and head of business development. In the future, Mine Mouth Power Plants (MMPP) will play an important role in fulfilling electricity needs, especially in Sumatra and Java. The long-term Contract of Electricity price from MMPP including transmission is cheaper than Conventional Power Plants (CPP) especially if MMPP use low rank coal. There are huge low rank coal resources in South Sumatra and utilization of this coal for MMPP has been very limited until now. Transfer of electricity is less complicated than transportation of coal to CPP. MMPP regulation is needed and the goal is to attract international IPP developers and provide certainty in term of policies, transparency in tender process, guideline of coal price, security of coal supply and permits. On April 7, 2014, MEMR Regulation No 10 Year 2014 was issued concerning the procedure and stipulation of coal prices for MMPP. We understand that any government regulation related to development of MMP must leverage the utilization of low rank coal and provide higher Government income. Moreover any MMPP reg-

ulation has to consider the view from international lenders, especially in relation to the bankability of MMPP projects. In view of these points, we feel there are issues that should be discussed to determine if this regulation is in line with the spirit of the grand scenario of why MMPP are needed.

radar technology for open pit monitoring. Extending radar capability and real time open integration of radar systems with other supporting technology will provide substantial safety, operational and business benefits to mine owners.

Ir H Permana

Martin Engineering Indonesia and PT Martin Supra Engineering general manager Belt conveyors see a number of problems, like the release of fugitive materials as dust and spillage, off-centre loading and belt mistracking. These are magnified by the maintenance, safety and housekeeping issues they create and compound. Perhaps 90% of the problems arise in the loading zone but new modular engineering concepts offer ways to upgrade conveyor loading zones, control fugitive material and belt tracking. The presentation will examine new or improved conveyor components that address common loading zone issues. It will discuss loading chutes that improve load placement, offering centralized loading that prevent mistracking and will look at improved transfer point enclosures that slow air movement and reduce the entrainment of particles into the air to prevent the escape of dust. It will review dust management systems, including dust suppression technologies and insertable air cleaners that control dust at its source in the loading zone, and will highlight other improved conveyor components that simplify maintenance requirements, to minimize downtime and labour costs, while improving safety. Other speakers include:

South Sumatra Province, Industry and Trade Department head. As head of the provincial government’s Industry and Trade Department, Ir Permana will discuss the coal industry in the region. The first part of his presentation will deal with the prospects of coal trading in South Sumatra and will include the region’s coal potential, possible investment opportunities and the downstream needs of coal producers. The second part will examine the problems facing the industry, including the transportation system for coal to be transferred outside the province, port facilities, coal mining licences and the restriction of coal transportation along the main transport route.

Garry Spencer IDS Australasia, Perth, Western Australia Garry’s presentation is ‘Open pit mine SAR monitoring: Current capability and a glimpse into the near future’. Over the past 10 years slope monitoring radar has evolved as a central tool for safety critical monitoring of pit wall movements in surface mining. Recent technical advances with Synthetic Aperture Radar (SAR) and photographic cameras have produced monitoring systems with very high spatial and temporal specifications. From the spatial aspect, technical advances in radar technology include operating at long distance (<4km), wide area coverage, high spatial resolution (0.5 x 8.6 metres at 2km distance), full geo-referencing with open pit terrain and high resolution photographic/video data. This capability enables broad area coverage for safety critical monitoring in open pit mines and when multiple SAR with camera units are established in pits, high resolution monitoring of entire open pit mines can be achieved. The video capability of the camera system also comes with programmable pan, tilt and zoom controls allowing the camera to be automatically positioned and focused on triggered alarm areas. Real time integration with other pit monitoring systems, such as survey prism systems, using open industry data formats and interfacing, also allow higher levels of confidence for critical alarming scenarios. Solid safety, operational and business benefits have already been achieved by using current

64 l Coal Age Indonesia l September 2013

Diky Tendi Trisna

Ir Humala Oloan PT MNC Energy and Resources’ director of operations.

Wilham George Louhenapessy Royal Haskoning DHV’s senior geotechnical engineer.

Tobias Maya PT Danmar Explorindo’s head Geographical Information Systems.

of

Tamaki Saito Tsukishima Kikai Co Ltd’s assistant to chief representative.

Ramli Ahmad PT Asia Pacific Mining Resources’ managing director.

Tim Duffy G-Resources Martabe Gold-Silver Project director of opercations.

Events

Coal calendar of events 121 Mining Investment Summit, October 15-16, Hong Kong. www.weare121.com Sumatra Miner, October 22-24, Palembang, Indonesia. www.sumatra-miner.com Coal Club Indonesia, October 22, Palembang, Indonesia. www.coalclubindonesia.com Coal Handling & Storage, October 22-24, St Louis, USA. www.mining-media.com/events Djakarta Mining Club, October 30, Jakarta, Indonesia. http://djakarta-miningclub.com Mining & Engineering (M&E) Indonesia, October 29-31, Jakarta. www.miningandengineeringindo.com IHS Asia Pacific Coal Outlook Conference, November 8-9, Bali, Indonesia. www.ihs.com Mining Myanmar, October 31-November 1, Yangon. www.miningmyanmar.com 3rd Coaltrans Emerging Asian Coal Markets, November 5-6, Ho Chi Minh City, Vietnam. www.coaltrans.com/region/asia.html Coal Club Indonesia, November 20, Indonesia. www.coalclubindonesia.com IMME 2014, December 3-6, Kolkata, India. www.immeindia.in

Ozmine2014 will be at M&E Indonesia THE Ozmine2014 conference, organized by Austrade and with the support of Austmine and the Melbourne Mining Club, will this year be run in conjunction with the M&E Indonesia and Ozmine exhibition managed by REEDMININGEVENTS. It will be held in Jakarta, Indonesia, from October 29-31. Ozmine is a key platform for Australian METS and mining companies to grow their business by learning more about opportunities and insights into the Indonesian market, and showcasing their products and services to a diverse range of Indonesian businesses. After eight years, in 2014 Ozmine has been revamped, with Austrade focusing on delivering a key value-add, the Ozmine conference. This series of seminars, which complements the concurrent exhibition, will bring together key Indonesian, Australian and ASEAN industry and government players to identify and analyse major trends, opportunities and challenges in the mining sector across this fast-growing region. The Ozmine exhibition will be strategically linked to the Mining & Engineering Indonesia (M&E) exhibition, with Ozmine featuring as the Australian Pavilion. This B2B conference attracts mining professionals across the whole mining supply-chain from Indonesia and the surrounding region. Austrade has entered into a strategic partnership with REEDMININGEVENTS, which runs M&E Indonesia, to co-locate Ozmine and M&E Indonesia. Austrade has worked with key industry players in Indonesia, such as the Indonesian Mining Association, and in Australia through Austmine and the Melbourne Mining Club to develop a high quality program for Australian business and

partners from across the region. The conference will comprise a series of seminars, giving Australian mining businesses the opportunity to hear from and interact with key Indonesian and ASEAN industry and government players, and to identify opportunities, analyse major trends and challenges in the mining sector. The goal of the seminar series is to assist Australian business to apply their expertise in productivity, efficiency and innovation in the Indonesian mining sector. Themes will include: • Insights into doing business with the Indonesian mining industry; • Getting a foothold in Indonesian value chains; • Developments in mining policy and regulation; • Updates on new mining projects and opportunities throughout ASEAN; • Shipping, processing and refining opportunities and innovation; and • Delivering the critical infrastructure that supports mining. REEDMININGEVENTS has established an M&E Indonesia Steering Committee made up of key industry stakeholders with the overall objective of shaping M&E Indonesia so that it is the most relevant and important mining event on the Indonesian calendar. The committee provides advice and guidance so M&E is aligned with industry trends, provides solutions to current industryt challenges, is the key regional industry meeting point and to ensure that the content is relevant. Committee members are Noke Kiroyan, David Duffy, Ben Lawson and Adrian Matthew Guyler. There will also be a dinner meeting of the Djakarta Mining Club held in conjunction.

Whittle Consulting Money Mining Seminar, February 10-11, Perth, Australia. www.whittleconsulting.com.au/events/

Advertising index

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Mines & Money Hong Kong, March 23-27, Hong Kong. www.minesandmoney.com/hongkong/ Whittle Consulting Money Mining Seminar, March 25-26, Johannesburg, South Africa. www.whittleconsulting.com.au/events/

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