Coal Age. Indonesia. Sumatra on the rise. Sumatra sedang bangkit. Adaro an Indonesian success story. German mining technology

Coal Age

®

Edition 5 September 2013 A Mining Media publication www.mining-media.com

Indonesia

Sumatra on the rise Sumatra sedang bangkit

Adaro an Indonesian success story Adaro – sebuah cerita sukses Indonesia

German mining technology Teknologi pertambangan Jerman

Sumatra Miner conference Konferensi penambang Indonesia

Indonesia FEATURES Mining success story PT Adaro Energy Tbk has become one of Indonesia’s most successful companies and one of the world’s leading coal industry players. It continues to develop infrastructure and improve its position in the coal industry, and has further integrated its coal supply chain. ...................3

Coal Age

®

Edition 5 September 2013 A Mining Media publication www.mining-media.com

German mining technology The 2013 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, and which sees Germany leading the world with its technology ............19

Indonesia

Sumatra on the rise Sumatra sedang bangkit

SUMATRA Development of Sumatra’s coal mining industry is being held back by lack of infrastructure, a situation exacerbated by the global coal downturn and several recent announcements affecting provision of infrastructure..............................................................................................11

Adaro an Indonesian success story Adaro – sebuah cerita sukses Indonesia

German mining technology

Drilling by Indus Coal at Block 9 of the Jambi Coal Projects in Eastern Sumatra has extended the strike of the coal seams by about 1600 metres to the northwest so that the total strike is now 4.5km in length. ......................................................................................................12 Despite the apparent strength of coal in Kalimantan, the long-term future of Indonesia’s coal mining industry is in Sumatra, according to Apple Mining president Ben Lawson. ................14

INDONESIA Completion of the acquisition of 80% of East Kalimantan thermal coal producer PT Borneo Emas Hitam (BEH) will see Killara Resources transition from junior mining explorer to an Indonesian coal producer.. .................................................................................................16 Altura Mining has completed a maiden coal reserve estimate at the Delta Coal operations in East Kalimantan. Delta has reserves of 12.5 million tonnes with scope to expand ..............17 Orpheus Energy is undertaking exploration drilling at its Block 4 project . ............................18

Teknologi pertambangan Jerman

Sumatra Miner conference Konferensi penambang Indonesia

Although Sumatra is believed to be the new rising star for coal mining in Indonesia, current production suggests the star has a long way to go to be as bright as Kalimantan with recent developments, global trends and lack of infrastucture causing it to drop rather than rise. However, the potential is certainly there and with government backing, private company determination and local support, Sumatra’s star can become a whole lot brighter (see page 10). This edition of Coal Age Indonesia focuses on the coal industry in Sumatra. Photo courtesy PT Bukit Asam

REST OF THE WORLD Botswana African Energy has completed acquisition of the 1.3 billion tonne Mmamanstwe project.....55 Australia Rio Tinto has started production at the Kestrel Mine Extension in central Queensland.. ....55 Colombia Ascot Resources has issued a maiden JORC resource at its Titiribi Coal Project . .........55 Kyrgyz Republic Celsius has started work for the 2013 season at Uzgen Basin Coking Coal Project .. ..........55

Potential Bukit Asam acquisitions - 13

Cokal identifies new seams - 15

DEPARTMENTS Advertisers’ index .............................................60 Events ...............................................................60 From the Editor ...................................................2 Indonesian briefs ..............................................18 Product news ................................................... 58 Supplier news ....................................................56

Caterpillar previews EL 1000 -58 September 2013 l Coal Age Indonesia l 1

From The Editor

Coal royalty proposal is ill-timed THE Indonesian Government’s proposal to increase coal mining royalties to 13.5% of net sales in 2014 from the current rate of 5-7% is aimed at equating the payments of every coal miner in the archipelago, the timing is questionable as is the likely impact on small mining companies. Globally the industry is struggling from a number of factors, including low prices, rising supply and lack of capital, and Indonesia’s producers are being hit hard. Many small companies have shut down while others are struggling to work under their contracts and even larger proJohn Miller, editor ducers are struggling to justify mine and infrastructure expansion plans. Currently, smaller or newer miners holding IUPs are obliged to pay royalties of 5-7%. The IUPs were issued by local administrations after introduction of the 2009 Mining Law. These companies pay royalties based on the calorific value of coal they produce. The rate for coal with calorific content less than 5100 kCal/kg, for example, is set at 3% of net sales; a rate of 5% is set for coal with a CV between 5100 and 6100 kCal/kg; while 7% is demanded for coal with a CV more than 6100 kCal/kg. Large firms and some multinationals holding contracts of work (CoW) and smaller miners working with legal mining licences (PKP2B) are exempt from the proposal as they already pay royalties set at 13.5% for the coal, low-grade and high-grade, they produce. Energy and Mineral Resources Ministry spokesman Paul Lubis says the change has been proposed in a bid to increase state revenue from the sector. “We feel the current revenue from royalty payments is not as big as the coal the country has produced.” The Indonesian Coal Mining Association (ICMA) and other representative bodies will oppose the proposal, claiming it will hurt miners, particularly the smaller ones. “We think it would be more reasonable if the government equated the royalty rate rule according to the quality of the coal both miners working under the PKP2B and IUP licences produce,” ICMA chairman Bob Kamandanu says.

Usul royalti batubara waktunya tidak tepat USUL pemerintah Indonesia untuk menaikkan royalti tambang batubara menjadi 13,5 % dari hasil penjualan netto (bersih) dari tarif yang sekarang 5-7% bertujuan menyamakan pembayaran oleh setiap penambang batubara di nusantara, namun pemilihan waktunya harus dipertanyakan seperti juga dampak yang mungkin ditimbulkannya terhadap perusahaan-perusahaan tambang kecil. Secara global industri batubara sedang bergelut untuk mengatasi sejumlah faktor, termasuk harga yang rendah, persediaan yang kian banyak, dan kurangnya modal, dan produsen batubara Indonesia benar-benar terpukul. Banyak perusahaan kecil tutup, sementara yang lainnya berusaha keras bekerja sesuai dengan kontrak mereka. Perusahaan batubara besar bahkan sedang berjuang untuk membenarkan rencana memperluas tambang batubara dan infrastrukturnya. Dewasa ini, para penambang kecil atau penambang baru yang memiliki izin IUP harus membayar royalti 5-7%. Izin IUP dikeluarkan oleh pemerintah daerah sesudah diberlakukannya Undang-undang Pertambangan tahun 2009. Perusahaan-perusahaan tersebut membayar royalti berdasarkan nilai calorific (panas batubara) yang dihasilkan. Misalnya, tarif royalti untuk batubara dengan nilai calorific di bawah 5100 kCal/kg ditetapkan 3% dari hasil penjualan netto. Tarif royalti 5% ditetapkan untuk batubara dengan CV antara 5100 dan 6100 kCal/kg, sedangkan tarif 7% untuk batubara dengan CV di atas 6100 kCal/kg. Perusahaan-perusahaan besar dan beberapa perusahaan multinasional yang memegang kontrak kerja (CoW) dan perusahaan-perusahaan tambang lebih kecil yang bekerja dengan izin pertambangan yang sah (PKP2B) dibebaskan dari royalti yang diusulkan karena mereka sudah membayar royalti 13,5% yang ditetapkan, baik untuk batubara mutu rendah maupun mutu tinggi yang dihasilkan. Jurubicara Kementerian Energi dan Sumber Alam, Paul Lubis, mengatakan, perubahan tarif itu diusulkan dalam upaya meningkatkan pemasukan negara dari sektor tersebut. “Kami merasa bahwa pemasukan dari pembayaran royalti saat ini tidak sebesar batubara yang dihasilkan”. Asosiasi Pertambangan Batubara Indonesia (ICMA) dan badan-badan perwakilan lainnya akan menentang usul itu dengan menyatakan, usul tersebut akan merugikan kaum penambang, khususnya perusahaan pertambangan kecil. “Kami berpendapat, mungkin akan lebih masuk akal jika pemerintah menyamakan tarif royalti menurut mutu batubara yang dihasilkan oleh perusahaan-perusahaan yang memiliki lisensi PKP2B dan IUP”, kata ketua ICMA, Bob Kamandanu. 2 l Coal Age Indonesia l September 2013

Coal Age Indonesia ®

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]

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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 2013 Mining Media International Pty Ltd

ISSN: 1832-7966

Mining success story

Adaro plays major role in Indonesian growth IN less than 10 years since establishment and less than five years since completing its IPO, PT Adaro Energy Tbk has become one of Indonesia’s most successful companies and one of the world’s leading coal industry players. It continues to develop infrastructure and improve its position in the coal industry, and has further integrated its coal supply chain by moving downstream into power as well as diversifying product offerings and increasing its reserve base through acquisition of deposits in Indonesia. Adaro Energy was established in 2004 under the name of PT Padang Karunia and has become the second largest thermal coal producer in Indonesia. Through its subsidiaries, the vertically integrated, pit-to-power company has a JORC-compliant coal resource and reserve of 4.6 billion tonnes and 1.1 billion tonnes, respectively. Its vision is to be a leading Indonesian mining and energy group while continuing to focus on creating maximum sustainable value from Indonesian coal. On July 16, 2008, Adaro conducted an IPO and listed on the Indonesia Stock Exchange. It issued 11.14 billion new shares, equal to 34.83% of its issued and fully paid capital. With the IPO price of Rp1100 per share (nominal share value of Rp100 per share), Adaro raised Rp12.25 trillion from the public in an IPO considered the largest in the history of the Indonesian capital market. Adaro Energy aims to achieve organic growth from the current reserve base, improving the efficiency of its coal supply chain, products and locations, and through deepening integration, while it achieves inorganic growth through acquisitions of other deposits. Major recent project developments include:

Loading haul trucks at the Adaro Coal Project in South Kalimantan. n Overburden Out of Pit Crushing and Conveying System (OPCC) - The project was 96% complete at the end of December 2012 and Adaro estimated the system would be commissioned during May 2013. n 2x30MW Mine-mouth Power Plant - The plant was 95% complete at the end of December 2012 and Adaro estimated commissioning of the first unit to start in January and the second unit by April 2013. n Capacity expansion at Kelanis River Terminal.

Kalimantan operations Adaro Energy’s primary focus is on the Adaro project in South Kalimantan through subsidiary PT Adaro Indonesia. The deposits are in three main areas - Tutupan, Wara and Paringin.

Tutupan stretches for 20km along a ridge in the northeast part of the Adaro area. No major faults are known to disrupt the coal. The Wara 1 coal deposit is 5km west of Tutupan Central and is separated from that deposit by the Dahai thrust. The deposit stretches in a northeast direction over 12km and dips to the southeast at 45 degrees. Wara 1 comprises three major seams which are characteristically low in ash (less than 3%) but with moisture content of around 40%. North Paringin deposit is southeast of Tutupan and around 1km north of the old Paringin pit. The deposit forms an asymmetrical anticline of 4km strike length with the eastern limb dipping at 30 degrees and the western limb at 60. It is also a multi-seam deposit consisting of more than 40 seams ranging in thickness from less than 5 metres

ADARO pegang peranan besar dalam pertumbuhan (industri) Indonesia DALAM waktu kurang dari 10 tahun sejak didirikan dan tidak sampai 5 tahun sejak merampungkan IPO-nya, PT Adaro Energy Tbk telah menjadi salah satu perusahaan Indonesia paling sukses dan salah satu pemain terkemuka dalam industri batubara dunia. Adaro terus mengembangkan infrastruktur dan meningkatkan posisinya dalam industri batubara. Selain itu Adaro juga lebih mengintegrasikan aneka suplai batubaranya dengan beralih ke hilir memasuki bidang tenaga listrik. Adaro juga menawarkan berbagai macam produk dan meningkatkan basis cadangannya dengan membeli sumber-sumber batubara di Indonesia. Adaro Energi didirikan tahun 2004 dengan nama PT Padang Karunia dan kini menjadi penghasil batubara thermal terbesar kedua di Indonesia. Lewat anak-anak perusahaan yang diawasinya, perusahaan batubara integrasi-vertikal yang bergerak di bidang tenaga listrik ini memiliki sumber batubara berdasarkan JORC sebanyak 4,6 miliar ton dan cadangan batubaranya sebanyak 1,1 miliar ton. Visi Adaro Energi adalah menjadi grup tambang dan energi

Indonesia terkemuka dan pada waktu yang sama memusatkan perhatian pada upaya menciptakan nilai batubara Indonesia yang maksimal dan berkelanjutan. Pada tanggal 16 Juli 2008 Adaro melaksanakan IPOnya dan terdaftar di Bursa Efek Indonesia. Adaro mengeluarkan 11,14 miliar saham baru, atau sama dengan 34,83% dari modalnya yang sudah dikeluarkan dan dibayar penuh. Dengan harga IPO Rp1100 untuk setiap saham (harga saham nominal Rp100 per saham), Adaro telah mengumpulkan Rp12,25 triliun dari publik, yang menurut IPO merupakan jumlah terbesar dalam sejarah pasar modal Indonesia. Adaro Energy bertujuan mencapai pertumbuhan organik dari basis cadangan yang ada sekarang, meningkatkan efisiensi berbagai pemasok batubaranya, produk-produknya dan lokasilokasinya. Tujuan itu juga akan dicapai lewat integrasi yang lebih diperdalam, sedangkan pertumbuhan inorganik akan direalisasi melalui pembelian sumber-sumber lain. Pembangunan proyek-proyek besar terbaru mencakup:

n Overburden Out of Pit Crushing and Conveying System (OPCC). Proyek ini 96% rampung pada akhir Desember 2012, dan menurut perkiraan Adaro, sistem itu akan siap-pakai bulan Mei 2013. n 2x30MW Mine-mouth Power Plant (Pembangkit Tenaga Listrik di Mulut Tambang). Proyek ini pada akhir Desember 2012 sudah 95 persen tuntas, dan menurut perkiraan Adaro, unit pertamanya akan mulai beroperasi bulan Januari dan unit kedua sekitar April 2013. n Perluasan kapasitas pada Terminal Sungai Kelanis.

Operasi-operasi Kalimantan Fokus utama Adaro Energy adalah proyek Adaro di Kalimantan Selatan melalui PT Adaro Indonesia yang merupakan anak perusahaannya. Cadangan batubaranya terdapat di tiga kawasan utama yakni Tutupan, Wara dan Paringin. Daerah Tutupan membentang sepanjang 20 kilometer menyusur gugusan bukit di bagian timur laut daerah Adaro. Diduga tidak akan ada dislokasi besar di kawasan itu yang bakal mengganggu September 2013 l Coal Age Indonesia l 3

Mining success story to greater than 20. The quality of North Paringin is similar to Tutupan with ash around 3% and CV gar of around 4800 kcal. The Paringin deposit extends south of the Balangan River. Since it started in production in 1991, Adaro has used open pit mining methods to produce coal with primary waste stripping and coal mining performed by hydraulic excavators and dump trucks. Under the Coal Contracts of Work (CCoW) the life of mine is due to expire in 2022 with an option of two extensions of 10 years.

South Sumatra developments Adaro Energy’s investments in PT Mustika Indah Permai (MIP), PT Bukit Enim Energi (BEE) and PT Servo Meda Sejahtera (SMS) are

part of its strategy in South Sumatra to replicate the proven success of its business model in South Kalimantan to create long-term, sustainable value from Indonesian coal. During the last quarter of 2012 MIP continued pre-stripping activities at the mine site with stockpile and water control facilities also built. At the end of 2012 more than 1 million bank cubic metres of material had been removed exposing up to 125,000 tonnes of coal. Land purchasing progressed and coal crushing started to build stockpile bases. The company continued to build orders for the sale of Ultima, the brand name of MIP’s low pollutant, low heat value coal, to end users in Indonesia, China, India, Taiwan, Thailand, the Philippines and Vietnam. MIP is

Side-tippers unload coal at an Adaro storage point in the South Kalimantan supply chain. panambangan batubara. Cadangan batubara Wara 1 terletak 5 kilometer sebelah barat Tutupan Tengah dan dipisahkan dari cadangan tersebut oleh celah Dahai. Cadangan ini membentang sepanjang 12 km ke arah timur laut dan menurun 45 derajat ke arah tenggara. Wara1 terdiri dari tiga pinggiran besar yang uniknya berkadar abu rendah (tidak sampai 3%), tapi kelembabannya sekitar 40%. Cadangan batubara Paringin Utara berada di sebelah tenggara Tutupan, dan sekitar 1 km di utara tambang Paringin lama. Cadangan ini bentuknya membujur, tapi tidak simetris sepanjang 4 km, dan kawasan timurnya menurun 30 derajat dan bagian tepi baratnya 60 derajat. Tambang ini juga merupakan cadangan multi-lapis dengan lebih dari 40 lapisan dangkal batubara mulai dari yang tebalnya di bawah 5 meter sampai lebih dari 20 meter. Mutu batubara Paringin Utara sama dengan mutu di cadangan Tutupan dengan kadar abu sekitar 3% dan Cvgar sekitar 4800 kcal. Cadangan Paringin membentang ke selatan Sungai Balangan. Sejak mulai produksi tahun 1991, Adaro menggunakan metoda- tambang-terbuka untuk menghasilkan batubaranya yakni dengan mesin penggali hidrolik dan truk-truk pengangkut yang besar. Berdasarkan Kontrak Kerja Batubara (CCoW) izin bagi tambang Paringin akan 4 l Coal Age Indonesia l April 2013

berakhir tahun 2022 dengan opsi dua perpanjangan selama 10 tahun.

Penegembangan di Sumatera Selatan Investasi Adaro Energy dalam PT Mustika Indah Permai (MIP), PT Bukit Enim Energi (BEE) dan PT Servo Meda Sejahtera (SMS) merupakan bagian dari strateginya di Sumatra Selatan untuk meniru sukses yang sudah terbukti dalam model bisnisnya di Kalimantan Selatan untuk menciptakan nilai jangka panjang yang berkelanjutan dari batubara Indonesia. Selama triwulan terakhir tahun 2012 MIP terus melakukan kegiatan penambangan di lokasi yang dangkal dengan fasilitas-fasilitas pengawasan perbekalan dan air juga dibangun. Pada akhir tahun 2012 lebih dari satu juta meter kubik material disingkirkan dan membuka 125 ribu ton batubara yang dapat ditambang. Pembelian tanah terus berlangsung dan hasil proses penghancuran batubara mulai menggunungnya persediaan baru. Perusahaan itu terus meningkatkan penjualan Ultima, yakni nama resmi batubara produksi MIP yang polutannya rendah, batubara bernilai panas rendah, kepada konsumennya di Indonesia, Cina, India, Taiwan, Thailand, Filipina dan Vietnam. 75% dari perusahaan MIP adalah milik Adaro melalui PT Alam Tri Abadi (ATA).

75%-owned by Adaro through PT Alam Tri Abadi (ATA). During quarter 4 of 2012, development alternatives for BEE were studied with the aim of producing a work program and budget for approval by shareholders. Exploration has included surface geological and aerial topographic mapping, sampling and 13,100 metres of exploration drilling. An additional exploration drilling program is being carried out in the BEE mining area this year to provide supplementary data for preparation of a JORC report on the area’s reserves and resources. Base line environment and social programs have started. From exploration results to date, BEE is considered compatible with Adaro’s other investments in electricity generation and is being promoted as a long-term, high volume fuel supply for a dedicated mine-mouth base-load power plant. BEE is 61.04%-owned by Adaro Energy through ATA, 20% by PT Pamapersada Nusantara, 13.92% by PT Triputra Utama Selaras and 5.04% by PT Bumi Alam Sejahtera. SMS completed all earthworks and surfacing of the road during the final quarter of 2012 while some permanent bridges are expected to be completed in 2013. On November 20 the haul road was officially commissioned by the South Sumatra Governor. Phase 1 of the Muara Lematang stockpiling and barge loading facility was also completed and 10 barges and 70,000 tonnes were loaded prior to the end of the year. The facility will be expanded to an annual capacity of 30 million tonnes over the next few years with future upgrades planned and timed in accordance with market demand. SMS is 35%-owned by Adaro Energy through ATA. Dalam triwulan 4 tahun 2012, alternatif pengembangan bagi BEE dipelajari untuk menghasilkan sebuah program dan anggaran kerja untuk mendapat persetujuan para pemegang saham. Eksplorasinya sudah meliputi pemetaan geologi dan topografi dari udara, pengambilan contoh dan penggalian eksplorasi seluas 13.100 meter. Program penggalian eksplorasi tambahan sedang dilakukan di daerah tambang BEE tahun ini untuk memberikan data-tambahan bagi persiapan laporan JORC mengenai cadangan dan sumber persediaan daerah tersebut. Program batasan lingkungan hidup dan sosial sudah dimulai. Dari hasil-hasil eksplorasi sejauh ini, BEE dianggap cocok dengan investasi Adaro lainnya dalam bidang-bidang penyediaan tenaga listrik. BEE kini sedang dipromosikan sebagai penyedia bahan bakar bernilai tinggi untuk jangka panjang bagi pusat pembangkit listrik di tambang batubara yang dangkal. 61.04% saham BEE adalah milik Adaro Energi melalui ATA, 20% milik PT Pamapersada Nusantara, 13,92% milik PT Triputra Utama Selaras, dan 5,04 persen dimiliki oleh PT Bumi Alam Sejahtera. SMS merampungkan semua tugas penggalian dan pengaspalan jalan selama triwulan terakhir tahun 2012, sedangkan beberapa jembatan permanen diharapkan akan diselesaikan tahun 2013.

Mining success story Other developments IndoMet Coal, a joint venture between BHP Billiton and Adaro Energy, is continuing the development of seven CCoWs in Kalimantan. IndoMet Coal continues to assess development options across all seven CCoWs and is constructing access roads and developing port facilities. In quarter 4 of 2012, PT Bhakti Energi Persada (BEP) continued to work towards getting the required government permits, acquiring land, securing social and community support, and completing engineering and geological studies. These programs are required to be finished before significant capital expenditures are made. The current development plan is to bring the BEP concessions to production in 2014. Adaro has full control of the management, operations and funding

of BEP from the date of signing on May 28, 2012. Electric Power Development Co Ltd (JPower), Itochu Corporation and PT Adaro Power established PT Bhimasena Power Indonesia (BPI) in July 2011. On October 6, 2011, BPI and state-owned electricity company PLN signed a 25-year power purchase agreement, which includes construction of a 2000MW coal-fired power plant in Central Java. BPI expected to achieve financial closure by the end of 2012 but due to not uncommon challenges related to land acquisitions, the Central Java Power Plant Project will be delayed. It is not expected to be a lengthy delay nor will it harm the project or sponsors. Adaro says the challenges are not insurmountable and it will deliver this key project as soon as possible, to bring significant benefit to all stakeholders and to help build the nation. Most parties

agree Indonesia cannot achieve its potential without increasing the country’s power generation capacity and Adaro intends to help Indonesia achieve its full potential.

Competitive advantages Adaro Energy and its subsidiaries have numerous competitive advantages: n Unlike most conglomerate business, Adaro is controlled by five families which collectively hold 63%. Adaro believes the natural checks and balances that exist in this ownership structure ensure all decisions are made in the best interest of the company and long-term value creation. n Low cost producer - The location and characteristics of the major deposit, as well as the operating strategy and execution create the capacity to produce coal at low cost level.

Open pit mining at Adaro Energy’s massive coal operations in South Kalimantan. Tanggal 20 November lalu bagian jalan tersebut diresmikan pemakaiannya oleh Gubernur Sumatra Selatan. Tahap pertama penyediaan batubara dan fasilitas pemuatannya ke dalam bargas di Muara Lematang juga sudah rampung dan 10 tongkang mengangkut 70.000 ton batubara sebelum akhir tahun. Fasilitas itu akan diperluas hingga mencapai kapasitas tahunan 30 juta ton dalam beberapa tahun mendatang. Rencana perluasan di masa depan itu dilakukan sesuai dengan permintaan pasar. Adaro Energy memiliki 35% dari saham SMS melalui ATA.

Pengembangan lainnya IndoMet Coal, sebuah joint venture (perusahaan patungan) antara BHP Billiton dan Adaro Energy, meneruskan pembangunan tujuh CCoW di Kalimantan. IndoMet Coal terus mempelajari opsi-opsi pembangunan di ketujuh CCoW tersebut dan sedang membuat jalan akses serta membangun fasilitas-fasilitas pelabuhan. Dalam triwulan 4 tahun 2012, PT Bhakti Energi Persada (BEP) terus berupaya mendapatkan izin yang diperlukan dari pemerintah, membeli tanah, memastikan diperolehnya dukun-

gan sosial dan masyarakat, merampungkan penelitian mesin-mesin dan geologi. Programprogram tersebut perlu diselesaikan sebelum disusunnya rencana anggaran modal yang signifikan. Rencana pembangunan yang sekarang adalah untuk memastikan bahwa konsesi-konsesi BEP itu sudah berproduksi dalam tahun 2014. Adaro mempunyai hak pengawasan penuh atas manajemen, operasi dan pendanaan BEP dari saat penandatanganan tanggal 28 Mei 2012. Electric Power Development Co. Ltd (JPower), Itochu Corporation dan PT Adaro Power mendirikan PT Bhimasena Power Indonesia (BPI) dalam bulan Juli 2011. Tanggal 6 Oktober 2011, BPI dan Perusahaan Listrik Negara PLN menandatangani persetujuan pembelian tenaga listrik 25 tahun, yang mencakup pembangunan sebuah pusat pembangkit listrik tenaga batubara berkekuatan 2000MW di Jawa Tengah. BPI berharap finansialnya akan beres menjelang akhir tahun 2012, namun karena ada permasalahan yang sudah lumrah dalam jual-beli tanah, maka Proyek Pusat Pembangkit Listrik di Jawa Tengah itu akan tertunda. Diharapkan penundaan itu tidak akan lama dan tidak akan merugikan proyek

tersebut atau sponsor-sponsornya. Adaro mengatakan, Permaslahan tersebut masih akan dapat diatasi dan pihaknya akan menyelesaikan proyek yang sangat penting ini secepat mungkin demi tercapainya keuntungan dan manfaat yang signifikan bagi segenap stakeholder dan untuk membantu membangun negara. Kebanyakan pihak sependapat bahwa Indonesia tidak dapat mencapai potensinya tanpa meningkatkan kapasitas tenaga listrik negara dan Adaro bermaksud membantu Indonesia mencapai potensi penuhnya.

Keuntungan kompetitif Adaro Energy dan perusahaan-perusahaan yang diawasinya memiliki banyak keuntungan kompetitif. n Berbeda dengan kebanyakan bisnis konglomerat, Adaro diawasi oleh lima keluarga yang secara kolektif memegang 63%. Adaro percaya proses checks and balances yang ada dalam struktur kepemilikan ini memastikan bahwa semua keputusan dibuat demi kepentingan terbaik perusahaan dan demi terciptanya nilai jangka panjang. September 2013 l Coal Age Indonesia l 5

Mining success story n Large operation - Adaro Energy and subsidiaries is the second largest coal producer in Indonesia, own and operate the largest coal mine in Indonesia, has the largest single location open pit mine in the southern hemisphere and the fourth largest in the world. n Unique coal - Adaro Energy’s environmentally friendly coal is trademarked around the world as Envirocoal. Growing concern for the environment, as well as understanding of Envirocoal’s other benefits, such as lower operating costs, will ensure demand for Envirocoal remains firm. n Highly skilled work force with many years’ experience - A large and varied work force and management, made up of people with decades of experience from Indonesia and around the world. Many consider Adaro responsible for establishing the international market for subbituminous environmental coal. n Diversified loyal blue chip customer base Adaro and its subsidiaries sell Envirocoal to a geographically diverse customer base of 41 companies in 17 different countries. Most have been customers for years and substantially all are power companies. n Not restricted by infrastructure – Adaro’s existing infrastructure gives the company the capacity to increase production rapidly with minimal capital expenditure and to quickly adjust production volume based on market demand and conditions. n A collection of integrated profit centres – Adaro Energy’s forward thinking plan enables each subsidiary, while fully integrated into the Adaro coal supply chain, to become an independent profit centre. Profit from subsidiaries assists the group’s overall income growth. Each sub-

Adaro Energy’s South Kalimantan coal operations include barging to a deep water transfer station. sidiary may become publicly listed. n Experienced subsidiaries - Adaro Energy’s strategic business units are experienced in the sectors of mining, trading, mining contractor service, and infrastructure and logistics. n High quality assets - As well as the 3.5 billion tonnes of coal reserves and resources, Adaro has a complete production fleet in the form of equipment and facilities for crushing, stockpiling, transportation, loading, production and other supporting roles.

Consistent growth There are several factors that have contributed

n Produser berbiaya rendah – Lokasi dan ciri khas dari cadangan utamanya, di samping strategi operasi dan pelaksanaannya menciptakan kemampuan untuk menghasilkan batubara dengan biaya yang rendah. n Operasi besar – Adaro Energy dan perusahaanperusahaan yang diawasinya adalah produsen batubara terbesar kedua di Indonesia, memiliki dan mengoperasikan tambang batubara terbesar di Indonesia, memiliki tambang terbuka paling besar di satu lokasi tunggal di belahan bumi bagian selatan dan yang terbesar keempat di dunia. n Batubara khas - Batubara produksi Adaro Energy yang ramah lingkungan dikenal khas di seluruh dunia sebagai Envirocoal. Keprihatinan yang kian meningkat tentang lingkungan hidup, di samping memahami manfaat-manfaat Envirocoal lainnya seperti biaya operasi yang rendah, akan memastikan bahwa permintaan tetap Envirocoal kuat. n Tenaga kerja sangat terlatih dengan pengalaman bertahun-tahun - Aneka macam tenaga kerja dan manajemen yang jumlahnya besar itu adalah orang-orang dengan pengalaman puluhan tahun dari Indonesia dan berbagai penjuru dunia. Banyak kalangan berpendapat bahwa Adaro 6 l Coal Age Indonesia l September 2013

merupakan perusahaan yang berhasil membangun pasaran internasional bagi batubara berkadar mineral rendah yang ramah lingkungan. n Basis pembeli utamanya kaum pemodal dari berbagai bidang - Adaro dan perusahaan-perusahaan yang diawasinya menjual Envirocoal ke pelbagai pembeli di 41 perusahaan dari 17 negara di berbagai penjuru dunia. Mereka kebanyakan pelanggan selama bertahun-tahun dan sebenarnya semuanya itu adalah perusahaan listrik. n Tidak dibatasi infrastruktur - Infrastruktur Adaro yang ada sekarang membuat perusahaan itu mampu dengan cepat meningkatkan produksi dengan biaya modal yang minimal dan dengan cepat dapat menyesuaikan volume produksi yang didasarkan pada permintaan dan kondisi pasar. n Sebuah koleksi perusahaan yang terintegrasi – Rencana pemikiran ke depan oleh Adaro Energy memungkinkan setiap perusahaan yang diawasinya itu, walaupun berintegrasi penuh dalam jaringan pemasok batubara Adaro, dapat saja menjadi perusahaan yang independen. Keuntungan dari anak-anak perusahaannya itu turut membantu seluruh pertumbuhan pemasukan grup Adaro Energy. Setiap perusahaan yang diawasi itu boleh saja terdaftar di Bursa Efek Jakarta.

to Adaro Energy’s consistent growth: n Demand for its coal is increasing every year. n Coal mining contractors perform well in terms of meeting annual targets. n The company has sufficient equipment and CAPEX to support production growth need. n Adaro has good mine planning. However, in the current difficult market conditions, Adaro has recognized the need to get back to basics and does this by continuing to focus on the core business and operational excellence, by reducing costs and improving efficiency. In addition, Adaro is carefully monitoring spending to preserve cash and maintain margins. n Anak-anak perusahaan yang berpengalaman – Unit- unit bisnis strategis Adaro Energy berpengalaman dalam \sektor pertambangan, perdagangan, jasa kontraktor pertambangan dan infrastruktur serta logistik. n Aset-aset bermutu tinggi – Selain memiliki cadangan dan sumber batubara sebanyak 3,5 milyar ton, Adaro mempunyai armada produksi lengkap dalam bentuk perlengkapan dan fasilitas untuk menghancurkan, menyimpan, mengangkut, memuat, memproduksi dan perananperanan bantuan lainnya.

Pertumbuhan yang konsisten Ada beberapa faktor yang membantu Adaro Energy terus tumbuh secara konsisten: n Permintaan akan batubaranya meningkat setiap tahun. n Performa yang baik para kontraktor tambang batubaranya karena selalu memenuhi target tahunan mereka. n Perusahaan ini memiliki perlengkapan dan CAPEX yang cukup untuk mendukung kebutuhan pertumbuhan produksi. n Adaro mempunyai perencanaan tambang yang bagus.

Mining success story Despite the recent economic downturn, the company remains on track to deliver its longterm strategies to grow and create maximum sustainable value from Indonesian coal by building a better and more efficient business. It aims to achieve a medium-term annual target of 80 million tonnes, at continuous improvement in the coal supply chain, and to move further downstream into power. Adaro Energy continues to believe in the long-term resiliency of its business model, the overall coal industry, and an emerging ASEAN economy.

Environmental initiatives Many people perceive that coal mining activities disturb the landscape and environment, but Adaro says this is not entirely true because by implementing good mining practices it can maintain and manage the environment without damaging it. In one initiative to maintain Co2, Adaro conducted energy efficiency in its operational activity to reduce solar fuel consumption. It is also developing alternative energy through a biodiesel-fuel pilot plant in collaboration with Komatsu and United Tractors. The B-20 program

aims to substitute 20% of fuel with jatropha oil which it plans to apply in 100 dump trucks when it can be mass produced. The program is expected to reduce annual emissions by 20,000 tonnes. The company’s environmental performance is strictly regulated and controlled by the use of an environmental management system aligned with ISO 14001 standards. Since the beginning of operations, Adaro Energy has been strongly committed to implement its mining principles to internationally recognized standards. In recent years it has received a Gold rating in the PROPER Award after four consecutive years of gaining a Green

Reclamation work at Paringin coal mine which is part of the Adaro project in Kalimantan.

Akan tetapi dalam kondisi pasar yang sulit saat ini, Adaro mengakui perlunya perusahaan kembali ke prinsip dasar dan hal ini dilakukan dengan terus memusatkan perhatian pada bisnis inti dan kehebatan operasi dengan cara mengurangi biaya dan meningkatkan efisiensi. Selain itu, Adaro dengan hati-hati memantau pengeluaran anggaran demi menghemat uang tunai dan mempertahankan keuntungan. Walaupun terjadi kemunduran ekonomi barubaru ini, Adaro Energy tetap berhasil mempertahankan strategi jangka panjangnya untuk tumbuh dan menciptakan nilai maksimal yang berkelanjutan bagi batubara Indonesia dengan membangun sebuah bisnis yang lebih baik dan lebih efisien. Adaro bertujuan mencapai target paruhwaktu tahunan sebesar 80 juta ton, dengan perbaikan yang berlanjut dalam proses pemasokan batubara, dan bergerak lebih ke hilir lagi ke bidang pemasokan tenaga listrik. Adaro tetap

yakin akan daya tahan jangka panjang model bisnisnya, seluruh industri batubara dan perekonomian ASEAN yang sedang tumbuh.

Inisiatif di bidang lingkungan Banyak orang terkesan bahwa kegiatan penambangan batubara merusak lingkungan, tapi Adaro Energy mengatakan kesan itu tidak sepenuhnya benar. Menurut Adaro, dengan melaksanakan praktik-praktik penambangan yang baik, tambang batubara dapat memelihara dan mengendalikan lingkungan tanpa merusaknya. Dalam satu inisiatif untuk menahan CO2, Adaro melaksanakan efisiensi energi dalam kegiatan operasinya untuk mengurangi konsumsi bahan bakar solar. Perusahaan ini juga mengembangkan energi alternatif melalui sebuah pusat percobaan dengan bahan bakar biodiesel lewat kerjasama dengan Komatsu dan United Tractors. Program B-20 itu bertujuan mengganti 20%

bahan bakarnya dengan minyak jatropha yang rencananya akan digunakan oleh 100 truk pengangkut berukuran besar bila sudah dapat diproduksi secara masal. Program tersebut diharapkan akan mengurangi emisi tahunan dengan 20.000 ton. Performa lingkungan Adaro Energy secara ketat diatur dan diawasi dengan penggunaan suatu sistem penanganan lingkungan yang disesuaikan dengan standar ISO 14001. Sejak mulai beroperasi, Adaro Energy bertekad kuat melaksanakan prinsip-prinsip pertambangannya sesuai dengan standar yang diakui dunia internasional. Dalam tahun- tahun terakhir, Adaro Energy telah menerima tanda penghargaan tertinggi (Gold Rating) dalam PROPER Award sesudah empat tahun berturut-turut mendapat Green Rating dari Kementerian Lingkungan Hidup. Kedua penghargaan itu menunjukkan bahwa Adaro Energy telah mematuhi semua syarat September 2013 l Coal Age Indonesia l 7

Mining success story rating from the Ministry of Environment. The awards have shown that Adaro has complied with all regulatory requirements and even gone beyond compliance by implementing environment initiatives and sustainable community development programs.

Safety is vital Adaro Energy has more than 22,000 employees and boasts many talented recruits from reputable universities, inside and outside Indonesia.

It hires more than 70% of its employees from the local community in South Kalimantan. Adaro is committed to maximizing workplace safety in all operational aspects. It continues to implement an integrated safety, environmental and production management system known as Adaro Safety, Environment and Production (A-SEP) and which is aligned to the ISO 14001 and OHSAS 18000 international standards. To improve employee awareness of safety, health and environmental issues, as well as to cre-

ate a safe working environment culture, Adaro has employed a group general manager of SHE to create policies which will be implemented by all levels within the company’s business units and operating subsidiaries. Some important components of the safety culture are: n Top management commitment to worker safety. n Consistently work on adapting international standards. n Punishment for breaking safety rules.

Adaro Energy has an integrated coal supply chain from pit to port.

peraturan dan bahkan lebih dari sekedar mematuhi dengan cara melaksanakan inisiatifinisiatif lingkungan dan program-program pembangunan komunitas yang berkelanjutan.

Jaminan keselamatan yang vital Adaro Energy memiliki lebih dari 22.000 orang karyawan, dan banyak di antara mereka itu direkrut karena penuh bakat dari berbagai universitas terkemuka di dalam dan luar negeri. Lebih dari 70% karyawannya berasal dari masyarakat setempat di Kalimantan Selatan. 8 l Coal Age Indonesia l September 2013

Adaro bertekad meningkatkan secara maksimal keselamatan karyawan di tempat kerja dalam seluruh aspek operasinya. Pihak perusahaan akan terus melaksanakan keselamatan yang terintegrasi, sistem manajemen lingkungan dan produksi yang dikenal dengan nama Keselamatan, Lingkungan dan Produksi Adaro (A-SEP) yang selaras dengan standar internasional ISO 14001 dan OHSAS 18000. Untuk meningkatkan kesadaran karyawan akan soal keselamatan, kesehatan dan lingkungan (SHE), serta menciptakan budaya lingkungan kerja yang aman, Adaro telah mengangkat seorang general manager dengan

tugas khusus. Ia menjadi general manager grup SHE dengan tugas: menciptakan kebijakan yang akan dilaksanakan oleh semua tingkat dalam lingkungan unit-unit bisnis Adaro Energi dan operasi anak-anak perusahaannya. Beberapa komponen penting tentang budaya keselamatan kerja itu adalah sebagai berikut: n Komitmen pimpinan perusahaan terhadap keselamatan karyawan. n Secara konsisten bekerja untuk menerapkan standar-standar internasional. n Hukuman bagi barangsiapa yang melanggar peraturan keselamatan kerja.

Coal Club Indonesia

Sumatra

Sumatra long-term future for Indonesian coal low energy coal and the island’s proxALTHOUGH Sumatra is often imity to these countries provides the believed to be the new rising star for added advantage of lower transportacoal mining in Indonesia current protion costs. Then there is also the duction suggests the star has a long increase in domestic demand which way to go to be as bright as Kalimcan also be met by coal from Sumatra antan with recent developments and as well as new technology which is global trends causing it to drop rather improving the status of low rank coal. than rise. However, the potential is PT Apple Coal, a subsidiary of certainly there and with government Apple Commodities, is looking to backing, private company determinarealize the untapped potential of tion and local support, Sumatra’s star Sumatra. Its president of mining Ben can become a whole lot brighter and Lawson strongly believes that rise much further. Sumatra will shape the coal industry’s Despite massive resources, estimatfuture. “Low-calorie Sumatran coal is ed at 52.53 billion tonnes, current prothe next big wave for Indonesia’s duction trends show that Sumatran mining industry. The demand for fosproduction only accounts for 3.7% of sil fuels is already substantial and will Indonesia’s total production. Despite the island holding vast reserves of Despite some recent setbacks there is still a bright future for continue to grow. “Investors need to understand that low-rank coal, only 23% of Sumatran Sumatra’s coal industry. Despite these short-term negatives there are Kalimantan’s ‘low-hanging fruit’ is gone. The production in May was classified as low rank, vast majority of areas containing high-calorific which possibly indicates that low rank coal pro- many medium and long-term positives. Indonesia’s coal boom has been one of the pri- Kalimantan coal have been staked out or mined duction is barely economic, if at all. This situation does not appear to be improving mary reasons the country has seen strong recent out. The long-term future of Indonesia’s coal as Sumatran coal production is still hindered by economic growth. Much growth has been con- industry is Sumatra. Most new power-plants are infrastructure constraints and a gloomy short- centrated in Kalimantan but many observers being ‘built-to-spec’ for low-rank coal.” He believes producing Sumatran coal for the term global coal outlook. Then there is the believe this is the tip of the iceberg for the counIndonesian Government’s plan to increase IUP try’s coal industry with Sumatra’s large reserves domestic market could be more profitable than royalties and the coal export tax, and China’s only recently tapped into and new large reserves exportation. “Indonesia’s growing industrial sector has increasing power requirements, creating proposed restrictions on low rank coal imports, also identified in eastern Indonesia. The increasing energy demands of India and an attractive opportunity for Sumatra.” which are likely to result in slower growth for the China have altered the economics of Sumatra’s island’s coal industry.

Sumatra masa depan jangka panjang bagi industri batubara Indonesia WALAUPUN Sumatra sering diduga sebagai bintang baru yang sedang naik untuk pertambangan batubara di Indonesia, namun produksi sekarang memberikan kesan bahwa jalan yang harus dilaluinya masih jauh untuk menjadi bintang secerah Kalimantan dengan perkembangan dan gejala global belakangan ini mengakibatkan bintang Sumatra jatuh bukannya naik. Tapi potensinya jelas tetap ada dan dengan dukungan pemerintah, tekad perusahaan swasta dan dukungan lokal, bintang Sumatra dapat menjadi lebih cerah dan naik jauh lebih tinggi. Walaupun memiliki sumber batubara yang sangat berlimpah, ditaksir sebanyak 52,53 miliar ton, tapi gejala produksi yang ada sekarang menunjukkan bahwa produksi batubara Sumatra hanya sekitar 3,7 % dari jumlah produksi Indonesia. Walaupun bumi Sumatra memiliki cadangan batubara bermutu rendah yang sangat besar, hanya 23% dari produksi batubara bulan Mei lalu yang dinyatakan bermutu rendah yang mungkin mengindikasikan bahwa produksi batubara bermutu rendah itu mungkin samasekali tidak ekonomis. Situasi itu tampaknya tidak bertambah baik karena produksi batubara Sumatra masih dirintangi oleh kendala-kendala infrastruktur dan gambaran suram bagi prospek jangka pendek industri

batubara global. Selain itu ada rencana pemerintah Indonesia untuk menaikkan tarif royalti izin IUP dan pajak ekspor batubara, serta rencana Cina untuk membatasi impor batubara bermutu rendah, yang mungkin akan mengakibatkan pertumbuhan industri batubara Sumatra menjadi lebih lambat. Walaupun ada hal-hal negatif jangka pendek seperti itu, tapi banyak segi-segi jangka sedang dan jangka panjang. Berkembangnya industri batubara Indonesia merupakan salah satu alasan bagi kuatnya pertumbuhan ekonominya belakangan ini. Pertumbuhan itu kebanyakan berpusat di Kalimantan, tapi banyak peninjau yang berpendapat bahwa ini baru sebagian kecil saja, baru ibarat puncak sebuah gunung es, bagi industri batubara Indonesia, sedangkan cadangan besarnya di Sumatra baru-baru ini saja diketahui ada, dan cadangan batubara dalam jumlah besar juga baru diketahui di Indonesia bagian timur. Permintaan akan energi yang kian meningkat dari India dan Cina telah mengubah arti ekonomi batubara energi rendah dari Sumatra. Kemudian lokasinya yang dekat dengan kedua negara tadi memberikan manfaat tambahan karena ongkos transportasinya lebih murah. Selain itu, permintaan di dalam negeri juga meningkat yang dapat dipenuhi oleh batubara dari Sumatra di

10 l Coal Age Indonesia l September 2013

samping teknologi baru yang memperbaiki status batubara bermutu rendah. PT Apple Coal, sebuah anak perusahaan Apple Commodities, berusaha mewujudkan potensi batubara Sumatra yang belum tergali. Presiden direkturnya, Ben Lawson, sangat percaya bahwa Sumatra akan menjadi kunci industri pertambangan batubara di masa depan. “Batubara berkadar panas rendah dari Sumatra akan sangat populer dan menguntungkan bagi industri pertambangan Indonesia. Permintaan akan bahan bakar fosil sudah sangat besar dan akan terus tumbuh. Investor perlu memahami bahwa “buah yang mudah dipetik di Kalimantan” sudah habis. Sebagian terbesar daerah yang mengandung batubara Kalimantan yang berkadar panas tinggi sudah ditambang atau ada pemiliknya. Masa depan jangka panjang industri batubara Indonesia adalah Sumatra. Kebanyakan pembangkit tenaga listrik baru dibangun khusus untuk batubara bermutu rendah”. Ia percaya bahwa memproduksi batubara Sumatra untuk pasar dalam negeri mungkin lebih menguntungkan daripada ekspor batubara. “Sektor industri Indonesia yang kian berkembang telah meningkatkan kebutuhannya akan tenaga listrik dan ini menciptakan peluang yang menarik buat Sumatra.

Sumatra

Infrastructure difficulties hinder growth DEVELOPMENT of Sumatra’s coal mining industry is being held back by lack of infrastructure, a situation exacerbated by the global coal downturn and several recent announcements affecting provision of infrastructure. The most significant has been the decision by India’s Adani Group to pull out of the US$1.7 billion, 250km Muara Enim-Tanjung Api Api rail project. Three years ago Adani signed an MoU with Indonesia’s state-owned coal producer PT Bukit Asam (PTBA) for the project, which would have been the first major coal railway built by the private sector in Indonesia. Once completed, the railway would have been able to transport 35 million tonnes of coal annually, allowing PTBA to significantly ramp-up its operations in South Sumatra and supporting an offtake agreement with Adani for at least 30 years. While it has been stated in media reports and announcements from PTBA that Adani pulled out of the project due to unclear and unstable government policy as well as rising costs, the vast changes that have taken place in the Indonesian coal market since the MoU was signed have contributed to the decision. Lower coal prices and various other policy announcements, such as an increase to IUP royalty rates and China’s potential low rank coal import restrictions, have lowered the feasibility of development of South Sumatra’s reserves which were to be transported by the proposed railway. Of three Sumatran rail projects originally planned to be in various construction stages by July 2013, only one is proceeding as planned. Of a potential 83 million tonnes of annual coal movement via rail, only 23 million tonnes is under construction. It appears unlikely that large infrastructure projects in Sumatra will be constructed to support the future of the coal industry without significant government support. Apart from rail, further investment is needed in road transport and in port access close to operating and proposed coal mines, particularly in the major producing region of South Sumatra. Another decision that will impact short-term growth came when the Head of Mining in South Sumatra announced that from the beginning of 2013, no new mining licences will be issued, in an attempt to preserve the island’s natural resources into the future. South Sumatra holds about 45% of Indonesia’s coal reserves. The policy applies to all open pit mining licences, including coal. The cessation of new mining licences will not affect current IUPs moving from exploration to production stage. A land dispute in South Sumatra is also proving a deterrent to potential investors and the Head of Regional Autonomy in Indonesia’s House of Representatives has asked the Minister of Home Affairs to resolve the boundary uncertainty between the Musi Banyuasin and Musi Rawas regencies.

Infrastructure constraints in Sumatra are impacting on growth of the coal industry. Photo PT Bukit Asam

Kesulitan infrastruktur merintangi pertumbuhan PEMBANGUNAN industri batubara di Sumatra kini terkendala oleh kurangnya infrastruktur, situasi yang diperburuk oleh melesunya industri batubara global dan beberapa pengumuman belakangan ini yang mempengaruhi pengadaan infrastruktur. Yang paling signifikan adalah keputusan Grup Adani dari India untuk keluar dari proyek pembangunan jalan kereta api Muara Enim-Tanjung Api Api sepanjang 250 km yang akan menelan biaya US$ 1,7 miliar. Tiga tahun yang lalu Adani menandatangani sebuah MoU dengan perusahaan penghasil batubara milik negara di Indonesia, PT Bukit Asam (PTBA), untuk proyek tersebut, yang sedianya akan merupakan jalan kereta api besar khusus untuk batubara yang pertama dibangun oleh sektor swasta di Indonesia. Bila sudah rampung jalur kereta api itu sedianya akan dapat mengangkut 35 juta ton batubara tiap tahun dan memungkinkan PTBA untuk sangat meningkatkan operasinya di Sumatra Selatan dan mendukung sebuah persetujuan susulan dengan Adani untuk jangka waktu paling sedikit 30 tahun. Walaupun sudah dinyatakan dalam laporanlaporan media dan pengumuman PTBA bahwa Adani keluar dari proyek itu akibat kebijakan pemerintah yang tidak jelas dan tidak mantap di samping juga biaya yang kian meningkat, namun perubahan luas yang terjadi di pasaran batubara Indonesia sejak ditandatanganinya MoU ikut mendorong diambilnya keputusan oleh Grup Adani. Harga batubara yang merosot dan berbagai pengumuman kebijakan lainnya, seperti naiknya tarif royalti IUP, dan kemungkinan Cina akan membatasi impor batubara tahap rendah telah mempertipis peluang bagi dikembangkannya cadangan-cadangan batubara yang sedianya akan diangkut lewat jalur kereta yang diusulkan itu.

Dari tiga proyek jalur kereta api Sumatra yang semula direncanakan akan berada dalam berbagai tahap pembangunan pada bulan Juli 2013, hanya satu proyek yang tetap dilaksanakan sesuai dengan rencana. Dari potensi 83 juta ton batubara setahun yang akan diangkut lewat jalur kereta api, hanya 23 juta ton yang sedang dibangun. Tampaknya tipis kemungkinan bahwa proyek infrastruktur yang besar di Sumatra akan dibangun untuk mendukung industri batubara di masa depan tanpa bantuan signifikan dari pemerintah. Selain jalan kereta api, investasi lebih lanjut diperlukan untuk transportasi jalan raya dan akses di pelabuhan dekat tambang-tambang batubara yang beroperasi dan yang sedang diusulkan, khususnya di Sumatra Selatan, yang merupakan kawasan penghasil batubara penting. Keputusan lain yang akan mempengaruhi pertumbuhan jangka pendek timbul ketika Kepala Dinas Pertambangan Sumatra Selatan mengumumkan bahwa mulai awal tahun 2013 tidak akan dikeluarkan lisensi baru dalam upaya memelihara sumber alam pulau Sumatra untuk masa depan. Sumatra Selatan memiliki sekitar 45% cadangan batubara Indonesia. Kebijakan itu berlaku untuk semua izin bagi tambang terbuka, termasuk batubara. Penghentian lisensi tambang baru itu tidak akan mempengaruhi peralihan izin produksi IUP yang sekarang dari tahap eksplorasi ke produksi. Suatu sengketa tanah di Sumatra Selatan juga ikut mencegah masuknya para calon investor, dan Ketua Komisi Pemerintahan Dalam Negeri dan Otonomi Daerah DPR-RI telah meminta Menteri Dalam Negeri agar segera menyelesaikan ketidak pastian tapal batas antara kabupaten Banyuasin dan kabupaten Musi Rawas.

September 2013 l Coal Age Indonesia l 11

Sumatra

Exploration extends Block 9 at Jambi power producers. DRILLING by Indus Coal at Block 9 of The area is accessible year-round and can the Jambi Coal Projects in Eastern Sumatra be reached by a commercial flight from has extended the strike of the coal seams by Jakarta to Jambi. Mining is typically a lowabout 1600 metres to the northwest so that cost, open cut, truck and excavator type the total strike is now 4.5km in length. A operation and coal is barged to the open sea further six HQ core holes have been comfrom a river port, where it is transhipped for pleted on Block 9 and all have intersected delivery to export power markets. Coal Seam A, as did the previous 14 HQ Indus executive director Vinay Hariani holes. says, “Coal Seam A has an average thickCoal Seam A has now been confirmed ness of 9.8 metres and shows excellent confrom 20 holes over a strike distance of tinuity down dip and along strike. From a about 4.5km from surface to a vertical geological perspective these 20 holes have depth of 120 metres and from 400 metres substantially de-risked Block 9 and added to 600 metres down dip from outcrop. Coal enormous value to this block. Seam B has now been confirmed from 18 “Our focus has moved to mining engiholes over a strike distance of 4km and has neering and completion of a feasibility an average intersected thickness of 1.6 study for the opening of a mine on Block 9 metres. Both seams show excellent contiwhich will annually produce 2 million nuity down dip and along strike as well as tonnes of thermal coal. Indus has appointed consistent thicknesses. GMS to assist in completion of the study. Below Coal Seam B an additional five The estimated CAPEX for such a mine in seams have been discovered by the Sumatra is only US$5 million and traditiondrilling. This substantially increases the ally in the Jambi region, development volume of coal on Block 9. To date samoccurs in less than 6 months.” ples from five holes have been returned ASX-listed Indus is focused on monetizfrom Geoservices Laboratory in Padang and assay results confirm a calorific value A Jacro 200 drill rig on location at Block 9 of the Jambi Coal ing the Jambi and MukoMuko coal projects Projects in Eastern Sumatra. over the next year and continuing to build for Coal Seam A of between 4800 and 5400 kcal/kg (adb). Six rigs continue drilling the 14,394 hectares in the Central Tebo district of scale through further acquisitions with local coal Tebo Regency in Jambi province. partner PT Param Energy. MukoMuko covers 9000 metre HQ coring program. The area has a recognized export thermal grade 2337 hectares and is in Bengkulu province of The Jambi projects consist of three coal-bearing concessions, Blocks 7, 8 and 9, totalling about coal product sought after by Indian and Chinese Western Sumatra.

Eksplorasi memperluas Blok 9 di Jambi PENGGALIAN oleh Indus Coal di Blok 9 Proyek Batubara Jambi di Sumatra telah memperluas lapisan luar batubara dengan kira-kira 1600 meter ke arah barat laut, sehingga panjang lapisan luar itu kini mencapai 4,5km. Enam lagi lubang di lapisan batubara HQ telah diselesaikan di Blok 9 dan semuanya berpapasan dengan lapisan batubara A, seperti halnya dengan 14 lubang HQ sebelumnya. Lapisan luar A kini dikukuhkan dari 20 lubang pada jarak 4,5km dari permukaan dengan kedalaman vertikal 120 meter dan dari jarak 400 dan 600 meter ke arah dalam dari lapisan luarnya. Lapisan-luar batubara B sekarang sudah dikonfirmasi dari 18 lubang pada jarak 4km dan ketebalan lapisannya rata-rata 1,6 meter. Kedua lapisan itu menunjukkan kontinuitas istimewa sampai jauh ke dalam dengan ketebalan yang konsisten. Di bawah lapisan luar batubara B telah ditemukan lima lagi lapisan luar sesudah dilakukan pengeboran. Temuan itu telah sangat meningkatkan volume batubara di Blok 9. Sebegitu jauh sampel dari lima lubang telah dikembalikan dari Laboratorium Geoservices di Padang dan hasil-

nya mengkonfirmasi bahwa nilai kalorifik atau penghasil panas untuk lapisan-luar batubara A adalah antara 4800 dan 5400 kcal/kg (adb). Enam anjungan terus menggali program dasar HQ yang dalamnya 9000 meter. Proyek Jambi terdiri atas tiga konsesi yang mengandung batubara yakni Blok 7, 8 dan 9 dengan luas total 14.394 hektar di daerah Tebo Tengah, provinsi Jambi. Di daerah Tebo terdapat produk batubara bermutu thermal yang dicari para produsen tenaga listrik dari India dan Cina. Akses menuju daerah itu terbuka sepanjang tahun. Jambi dapat dicapai dengan pesawat komersial dari Jakarta. Pertambangan di Jambi biasanya tidak banyak menelan biaya, tambangnya terbuka, operasinya menggunakan truk dan alat penggali. Batubaranya dibawa oleh kapal tongkang dari pelabuhan sungai ke laut terbuka dan dari sana muatan tersebut dipindahkan ke kapal besar untuk diangkut ke pasar tenaga listrik di luar negeri. Direktur Eksekutif Indus, Vinay Hariani, mengatakan, “Lapisan luar batubara A mempunyai


ketebalan 9,8 meter dan menunjukkan kontinuitas yang istimewa di dalam dan di sepanjang jalurnya. Dari sudut geologi, ke-20 lubang itu praktis telah menghilangkan risiko bagi Blok 9 dan sangat meningkatkan nilai blok tersebut. “Fokus kami telah beralih ke mesin pertambangan dan merampungkan studi kelayakan untuk membuka tambang di Blok 9 yang setiap tahun akan menghasilkan 2 juta ton batubara thermal. Indus telah menunjuk GMS untuk membantu menyelesaikan studi kelayakannya. Perkiraan CAPEX bagi tambang serupa itu di Sumatra hanya US$5 juta dan di kawasan Jambi pembangunan biasanya terjadi dalam waktu tidak sampai 6 bulan.” Indus yang terdaftar di Bursa ASX memusatkan perhatian pada upaya membuat proyek batubara Jambi dan Muko-Muko sebagai sumber pencari uang tahun depan. Indus juga akan terus memperluas diri dengan membeli lebih banyak saham dari mitranya, PT Param Energy, sebuah perusahaan tambang batubara lokal. Muko-Muko mencakup kawasan seluas 2337 hektar dan terletak di provinsi Bengkulu, Sumatra bagian selatan.

Sumatra

Bukit Asam eyes off further sites STATE-OWNED PT Bukit Asam is seeking to acquire stakes in other coal mining sites as part of its expansion plans. The company, which has mining permits covering 90,832 hectares in Sumatra and Kalimantan and total coal resources of 7.29 billion tonnes with mineable reserves of 1.99 billion tonnes, is conducting due diligence on several mining areas for potential acquisition. Bukit Asam’s largest site is Tanjung Enim, which occupies 66,414 hectares in South Sumatra and has the largest resources with 6.36 billion tonnes, and mineable reserves of 1.59 billion tonnes. The company is the major coal operator in Sumatra and its installed annual production capacity is 20 million tonnes. It sold 15.3 million tonnes last year and aims to increase its sales volume by 35% to 20.68 million tonnes this year. As of May it had sold 7.6 million tonnes or 33.5% from its original 2013 sales target. A spokesman said the sales were slightly below target because most of the newly imported railroad locomotives had not been fully utilized. The proposed sales increase for 2013 was in line with a transport commitment from state-owned rail company PT Kereta Api Indonesia to shift 15.6 million tonnes of coal this year, a 31% increase from 2012. Further expansion plans for Bukit Asam in Sumatra have been impacted by a decision of Adani Group to pull out of a $1.7 billion railway joint project in South Sumatra. Bukit Asam’s CEO Milawarma says the Adani decision was prompted by Indonesia’s tough restrictions on licensing. Despite the decision, Milawarma says Bukit Asam is still in ongoing discussions with Indonesia’s Rajawali Group to start another $2 billion South Sumatra coal railway project, which has also been delayed for years due to licensing and valuation issues. He says the projects are in theory straight-forward and should be easy to get going but there are lots of sectors involved, there are mining regime changes and investors are scared off. The projects also face other risks, including weak prices and concerns China will limit imports of low-calorie coal. Milawarma says it would shift shipments to India if China didn’t take it. Bukit Asam has secured long-term contracts to help it achieve the 2013 sales target. It has signed a 10-year contract to deliver 51.8 million tonnes to PT Indonesia Power to supply a coal-fired power plant in Banten. Late last

A conveyor at a Bukit Asam coal mine in South Sumatra. year it signed a 30-year contract to supply 68.6 million tonnes for fertilized producer Pupuk Indonesia. Also as part of expansion plans, it will increase annual capacity of Tarahan port from 13 million to 25 million tonnes by 2014. It is also expected to complete two 8MW coal-fired power plants near Tarahan port this year and has joined a consortium to develop 2 110MW power plants in Banjarsari.

Bukit Asam mengincar Lahan Tambang lebih jauh PT BUKIT Asam Badan usaha milik negara sedang berusaha membeli saham di tambang batubara lainnya sebagai bagian dari rencana perluasannya. Perusahaan itu memiliki izin menambang seluas 90.832 hektar di Sumatra dan Kalimantan dengan jumlah cadangan batubara 7,29 miliar ton dengan cadangan yang dapat ditambang sebanyak 1,99 miliar ton. PT Bukit Asam kini sedang melakukan pengamatan uji tuntas beberapa daerah pertambangan untuk melihat kemungkinan adanya potensi untuk membelinya. Tambang terbesar milik PT Bukit Asam ada di Tanjung Enim, yang mencakup daerah seluas 66.414 hektar di Sumatra Selatan dengan sumber batubara terbesar yakni 6,36 miliar ton, dan cadangan yang dapat ditambang sebanyak 1,59 miliar ton. Perusahaan itu merupakan operator batubara utama di Sumatra dan kapasitas produksi tahunannya 20 juta ton. PT Bukit Asam tahun lalu menjual15,3 juta ton dan bermaksud meningkatkan volume penjualannya dengan 35% menjadi 20,68 juta ton tahun ini. Sejak bulan Mei PT Bukit Asam telah menjual 7,6 juta ton atau 33,5% dari target penjualan aslinya untuk tahun 2013. Seorang jurubicara mengatakan, jumlah penjualan tersebut agak sedikit di bawah target karena kebanyakan lokomotif kereta api yang baru diimpor belum digunakan sepenuhnya.Peningkatan penjualan yang direncanakan untuk tahun 2013 itu sesuai dengan komitmen transportasi perusahaan milik negara, PT Kereta Api Indonesia, untuk memindahkan 15,6 juta ton batubara tahun ini, kenaikan sebesar 31 persen dari tahun 2012. Rencana perluasan Bukit Asam di Sumatra menderita akibat dampak keputusan Adani Group dari India untuk mundur dari proyek bersama bernilai 1,7 miliar dollar untuk membangun jalan kereta api di Sumatra Selatan. Direktur Eksekutif Bukit Asam, Milawarma, mengatakan keputusan Adani

itu adalah akibat diterapkannya pembatasan keras oleh Indonesia terhadap lisensi. Walaupun ada keputusan tersebut, Milawarma mengatakan, Bukit Asam masih terus berembuk dengan Rajawali Group dari Indonesia untuk memulai proyek jalur kereta api batubara lainnya senilai $2 miliar di Sumatra Selatan, yang juga tertunda bertahun-tahun akibat masalah lisensi dan taksiran nilai. Ia mengatakan, dalam teori, proyek-proyek tersebut tidak kompleks dan seharusnya mudah dilaksanakan, tapi banyak sekali sektor yang ikut terlibat, seperti diubahnya peraturan pertambangan yang membuat para investor ketakutan. Proyek-proyek itu juga menghadapi risiko lain, seperti lemahnya harga batubara dan kekhawatiran Cina akan membatasi impor batubara kalori rendah. Kata Milawarma, Bukit Asam berencana memindahkan pengiriman batubaranya ke India jika Cina tidak mau membelinya. Bukit Asam telah memastikan terjaminnya kontrak-kontrak jangka panjang untuk membantunya mencapai target penjualan tahun 2013. Perusahaan itu telah menandatangani kontrak 10 tahun untuk memenuhi 51,8 juta ton batubara kepada PT Indonesia Power untuk menyediakan pembangkit listrik tenaga batubara di Suralaya, Banten. Akhir tahun lalu Bukit Asam menandatangani kontrak 30 tahun untuk menyediakan 68,6 juta ton batubara bagi pabrik pupuk milik negara, Pupuk Indonesia. Juga dalam rencana perluasannya, perusahaan itu akan meningkatkan kapasitas tahunan pelabuhan Tarakan dari 13 juta ton menjadi 25 juta ton menjelang tahun 2014. Bukit Asam juga diharapkan akan merampungkan pembangunan dua pusat pembangkit listrik tenaga batubara berkekuatan 8MW dekat pelabuhan Tarakan tahun ini dan ikut dalam konsortium untuk membangun dua pusat pembangkit listrik berkekuatan 110MW di Banjarsari. September 2013 l Coal Age Indonesia l 13

Sumatra

Apple Coal positive about Sumatra DESPITE the apparent strength of the coal industry in Kalimantan, the long-term future of Indonesia’s coal mining industry is in Sumatra, according to Apple Mining Group president Ben Lawson. He says the vast majority of areas in Kalimantan containing high-calorific coal have been mined out or staked out, which presents many opportunities for growth in Sumatra. PT Apple Coal Indonesia is responsible for the Apple Group’s coal operations in Indonesia, and has operations in Sumatra and Kalimantan. The company believes producing Sumatran coal for the Indonesian domestic market could be poten-

tially more profitable than exports and Ben Lawson supports this by stating low-calorie Sumatran coal is the next big wave for Indonesia’s mining industry. The company owns mines in South Sumatra and has acquired two thermal coal concessions in Kalimantan which have total reserves of more than 30 million tonnes. As well as specializing in coal exploration and mine development, the company also acts as a trading arm of the parent company, Apple Commodities, for the Indonesian region. The company has entered in to coal trade with the help

Apple Coal is fired up about serving Indonesia’s growing domestic market.

of exclusive tie ups with four coal mines in Indonesia for a total monthly commitment of 200,000 tonnes. Apple Coal president commissioner Nischal Jain has been pleasantly surprised by the shortterm gains made by the company in addition to what he sees as its long-term potential. “Apple Commodities (Hong Kong) is also involved in agricultural products and textiles, as well as focusing on natural resources. We plan to expand our portfolio in Indonesia and are looking into bauxite and manganese markets, but right now it is just iron ore and coal for us.” He says “We have been trading a lot of coal over the past three years and will continue to do so. Over the next four years the company’s aim is to become a 10 million tonne/annum operation.” In possession of several mines with an area totalling more than 58,000 hectares, Nischal Jain is cautiously optimistic that they will become a publicly traded company sooner rather than later. Ben Lawson has been involved in the Indonesian coal business for more than a decade. He first came to Indonesia in 1996 as a headhunter for infrastructure projects in South East Asia. In 1999 the company he was employed with closed its Asian offices due to the Asian financial crisis, but Ben Lawson decided to stay on and in 1999 he co-founded PT Motus Gemilang for bulk commodities trading. In December 2009, this company formed a strategic partnership with the Apple Group of Companies, a multi-faceted Indian conglomerate with offices and operations throughout Asia.

Apple Coal positif tentang Sumatra WALAUPUN kekuatan industri batubara terbesar ada di Kalimantan, namun masa depan jangka panjang industri tambang batubara Indonesia berada di Sumatra, begitu menurut presiden Apple Mining Group, Ben Lawson. Ia mengatakan, sebagian besar daerah di Kalimantan yang mengandung batubara berkalori tinggi sudah ditambang. Karena itu, katanya, banyak peluang bagi pertumbuhan di Sumatra. PT Apple Coal Indonesia mengelola operasi pertambangan batubara di Indonesia, dan beroperasi di Sumatra dan Kalimantan. Perusahaan tersebut berpendapat bahwa produksi batubara di Sumatra untuk pasar domestik Indonesia mungkin potensinya lebih menguntungkan ketimbang ekspor. Ben Lawson mendukung pendapatnya itu dengan mengatakan bahwa batubara Sumatra yang berkalori rendah akan sangat populer dan menguntungkan bagi industri batubara Indonesia. Perusahaan itu memiliki sejumlah tambang di Sumatra Selatan dan baru mendapatkan dua konsesi batubara thermal di Kalimantan dengan jumlah cadangan sebanyak lebih dari 30 juta ton.

Selain mengkhususkan diri dalam eksplorasi dan pengembangan tambang batubara, Apple Coal juga memiliki sebagai sayap-perdagangan bagi induk perusahaannya, Apple Commodities, untuk kawasan Indonesia. Perusahaan itu telah memasuki bidang perdagangan batubara lewat bantuan berupa hubungan khusus dengan empat perusahaan tambang batubara di Indonesia dengan komitmen jumlah bulanan sebanyak 200.000 ton. Presiden Komisaris Apple Coal, Nischal Jain, mendapat kabar menggembirakan dengan keuntungan jangka pendek yang dicapai perusahaannya di samping apa yang dipandangnya sebagai potensi jangka panjangnya. “Apple Commodities (Hong Kong) juga terlibat dalam produk-produk pertanian dan tekstil, di samping memusatkan perhatian pada sumber daya alam. Kami berusaha memperluas bidang kegiatan kami di Indonesia dan mulai melihat pada pasar tambang bauksit dan mangan, tapi saat ini hanya bijih besi dan batubara.” Ia mengatakan: “Kami telah banyak menjual batubara dalam tiga tahun terakhir ini dan akan


terus melakukannya. Dalam masa empat tahun mendatang tujuan perusahaan kami adalah menjadi perusahaan dengan operasi 10 juta ton setiap tahun”. Dengan memiliki beberapa pertambangan di daerah seluas lebih dari 58.000 hektar, Nischal Jain menyatakan rasa optimis bernada hati-hati bahwa semua itu akan go public dalam waktu secepatnya. Ben Lawson telah giat dalam bisnis batubara di Indonesia selama lebih dari 10 tahun. Ia mula-mula datang ke Indonesia tahun 1996 untuk mencari proyek infrastruktur di Asia Tenggara. Dalam tahun 1999 perusahaan yang mempekerjakannya menutup operasinya di Asia akibat krisis moneter Asia, tapi Ben Lawson memutuskan terus tinggal. Tahun 1999 ia ikut mendirikan PT Motus Gemilang yang bergerak dalam bidang perdagangan komoditi. Bulan Desember 2009, perusahaan tersebut menjalin kemitraan strategis (strategic partnership) dengan perusahaan Apple Group, sebuah Perusahaan konglomerat aneka-jenis dari India dengan kantor dan operasi di seluruh Asia.

Indonesia

Cokal identifies new seams at BBM COKAL has identified additional seams, the KLM seams, at its Bumi Barito Mineral (BBM) project in Central Kalimantan and confirmed that they contain high-quality premium coking coal. The new seams, which outcrop to the east of the high quality J seam, are uppermost in the package of 13 seams mapped to date. The KLM seams form a significant portion of the JORC-compliant exploration target of 200350 million tonnes announced by Cokal in June 2012. Eighteen bore holes have been completed in the KLM area and core samples for four of these holes have been analyzed. “The results confirm that seams in the far eastern part of BBM continue to produce a premium coking coal and are a welcome addition to the existing premium metallurgical coal at the project,” says Cokal executive director Pat Hanna. “All core samples which have intersected the seam have demonstrated excellent coking potential. “Although initial analytical results of the raw coal samples indicate an ash range between 12.6 and 16.5%, washed coal results indicate high yields ranging from 80 to 90%, and ash results from 4 to 5%, achieved using a relatively high separation density of 1.6. The in-situ ash is generally related to the presence of thin stone bands. We are testing large diameter cores to determine the possibility of easily separating stone bands from the coal using a simple in-pit screening process. “We are progressing our definitive feasibility study which will allow BBM to be ‘bankable’ and then taken into production in the first half of 2014. The BBM project will be developed on the basis of a 2 million tonnes/annum direct ship operation. Plans are well progressed now that the EIS is approved and a mining IUP granted for a project up to 6 million tonnes/annum. These are critical elements which must be completed and approved in applying for the necessary mining approvals for the project,” Pat Hanna says. Cokal has eight drill rigs active on BBM with seven focused on converting the additional exploration target into JORC resources. Cokal is targeting an upgraded resource for release in the third quarter of 2013. Meanwhile, Cokal has formed a joint venture with Meratus Advance Maritime (MDM), part of the Meratus Group, to own and manage shallow river barges and tugs constructed specifically for the BBM project. The agreement culminates two years’ of surveys into river-based shallow draft barging systems, confirming effectiveness for the river. While such barging is used worldwide, the system has yet to see Indonesian use. The company will raise more than Aus$9.6 million in a private placement to Singapore-based investment company Blumont Group. The placement will be issued in five tranches in line with Cokal’s planned drilling and detailed engineering plans, and will be used to fund that work and for general corporate purposes.

Core from Cokal’s BBM project, which has a JORC-compliant indicated and inferred resource of 77 million tonnes.

Cokal temukan lapisan baru di BBM COKAL telah membuktikan adanya temuan lapisan batubara yang baru yakni lapisan KLM di proyek Bumi Barito Mineral (BBM) di Kalimantan Tengah dan menegaskan bahwa lapisan baru itu ternyata mengandung batubara coking premium yang bermutu tinggi. Lapisanlapisan baru itu, yang muncul di arah timur lapisan J yang bermutu tinggi, berada di posisi paling atas dalam sekelompok 13 lapisan batubara yang sudah tercatat sejauh ini. Lapisan KLM itu merupakan bagian signifikan dari target eksplorasi yang disepakati JORC sebanyak 200-350 juta ton yang diumumkan Cokal dalam bulan Juni 2012. Delapanbelas lubang bor sudah selesai dibangun di zona KLM dan sampel batubara dari empat di antara lubanglubang itu sudah selesai dianalisa. “Hasilnya menegaskan bahwa lapisan-lapisan di ujung timur proyek BBM itu terus menghasilkan batubara coking bermutu premium dan merupakan tambahan menggembirakan bagi produksi batubara metalurgi premium yang sekarang di proyek tersebut”, kata Direktur Utama Cokal, Pat Hanna. “Seluruh sampel dari berbagai lapisan batubara itu menunjukkan adanya potensi batubara coking yang sangat baik. Walaupun hasil penelitian pendahuluan atas sampel batubara mentah mengindikasikan adanya kadar abu antara 12,6% dan 16,5%, namun hasil dari batubara yang dicuci menunjukkan hasil yang tinggi antara 80% sampai 90%, dan hasil abunya naik dari 4% menjadi 5%. Ini tercapai dengan menggunakan kepadatan pemisahan yang relatif tinggi (high separation density) yaitu 1,6. Di tempat aslinya abu itu umumnya dikaitkan dengan adanya kumpulankumpulan batu tipis. Kami kini sedang menganalisa yang garis tengahnya besar untuk menentukan kemungkinan dipisahkannya secara mudah kumpulan batu-batu tipis itu dari batubara lewat proses in-pit screening yang sederhana. Kami akan mengajukan studi kelayakan yang pasti yang akan membuat BBM menjadi perusahaan yang

berhasil dan kemudian berproduksi pada paruh pertama tahun 2014. Proyek BBM akan dikembangkan dengan tujuan utama: beroperasi untuk mengapalkan secara langsung 2 juta ton batubara setiap tahun. Semua rencana kini berjalan dengan mulus. EIS sudah disetujui dan IUP pertambangan sudah dikeluarkan untuk proyek dengan kapasitas sampai 6 juta ton per tahun. Untuk mendapatkan izin pertambangan yang diperlukan bagi proyek BBM, hal-hal tadi merupakan unsur-unsur sangat penting yang harus dirampungkan dan disetujui”, kata direktur eksekutif Cokal, Pat Hanna. Cokal mempunyai delapan anjungan penggalian yang aktif dengan operasi BBM. Tujuh di antaranya khusus bertugas mewujudkan target eksplorasi baru tersebut menjadi produksi JORC. Yang menjadi target Cokal adalah: sumber yang lebih sempurna sudah akan siap pada triwulan ketiga tahun 2013 ini. Sementara itu, Cokal telah membentuk sebuah perusahaan patungan (joint venture) dengan Meratus Advance Maritime (MDM), bagian dari Grup Meratus, untuk memiliki dan mengelola kapal-kapal tongkang dan kapal penarik untuk sungai dangkal yang akan digunakan khusus untuk proyek BBM. Persetujuan itu merupakan kulminasi dari survey selama dua tahun tentang sistem penggunaan kapal tongkang di sungai berair dangkal, yang menegaskan keefektifannya untuk pengangkutan di sungai. Walaupun pengangkutan kapal tongkang di sungai sudah digunakan di seluruh dunia, namun sistem itu belum digunakan di Indonesia. Cokal akan memperoleh lebih dari 9,6 juta dollar Australia lewat persetujuan investasi dengan Blumont Group, investor swasta yang berkedudukan di Singapura. Investasi itu akan dilakukan dalam lima tahapan sesuai dengan rencana Cokal tentang penggalian dan rencana terinci tentang penyediaan alat-alat mesin. Dana dari investasi tersebut akan digunakan untuk membiayai proyek itu dan keperluankeperluan lainnya.


Indonesia

Acquisition will transform Killara to producer COMPLETION of the acquisition of 80% of East Kalimantan thermal coal producer PT Borneo Emas Hitam (BEH) will see Killara Resources transition from junior mining explorer to an Indonesian coal producer. The transaction provides ASX-listed Killara with a coal producing mine and a greenfield coal opportunity. Together with strategic alliance partner and major shareholder, the Zulkarnaen family, Killara will pay $2.2 million for its share of BEH. In addition, Killara has obtained an option to acquire a 60% interest in PT Pagun Taka, which has a prospective 2337ha Central Kalimantan concession listed as ‘clean and clear’ by the Department of Energy and Mineral Resources. The agreement sees operational control for BEH move to Killara, which will also nominate personnel to join the BEH Board, thus gaining majority representation. Killara will also pay US$3 per tonne above a mineable reserve threshold of 733,333 tonnes, ensuring that the cost of acquisition remains at US$3 per tonne. Killara has completed the first phase of technical due diligence and field reconnaissance at BEH. Exploration data provided by the vendor, along with Killara’s initial work, forms the basis for the ongoing due diligence and exploration. Company officials say current production permitting, land compensation, infrastructure, forestry classification and geological information should allow mining to begin in 4 to 6 months. The production permit is listed as ‘clean and clear’ band covers a 1002hectare area in Tenggarong district, East Kalimantan. The mining licence expires in January 2014 with an automatic right for renewal with BEH. A drilling program is being developed which focuses on two short-term production targets that have been subject to land compensation. This program is expected to take two months to complete and will allow for detailed mine planning. Mining was carried out until early 2013 with some coal stockpiled at a nearby facility. Infrastructure, including roads, office and a workshop, remains onsite and may be quickly reactivated.

Geologists from Killara Resources at the BEH property. A major benefit for BEM is supporting infrastructure, which includes existing roads providing access to several barge loading facilities all less than 5km from production targets. These load onto the Mahakam River which at the loading point is 450 metres wide and has year-round use. Transhipment facilities lie 150km down river. Coal quality tests have shown encouraging results. There were samples from 32 of the 46 mapped outcropped submitted for analysis at the PT Geoservices Balikpapan laboratory with results confirming a direct shipping thermal coal product with high CV, low ash and varying but generally high sulphur levels. CV of the outcrops ranged from 5459 kcal/kg to 7546 kcal/kg with an average of 6948. In light of these transactions Killara will not proceed with Bengkulu project in South Sumatra.

Akuisisi 'menyulap' Killara menjadi produsen (batubara) TUNTASNYA pembelian 80% PT Borneo Emas Hitam (BEH), produsen batubara thermal di Kalimantan Timur, akan mengubah status Killara Resources dari penjelajah junior pertambangan (junior mining explorer) menjadi produsen batubara di Indonesia. Dengan transaksi itu, maka Killara yang terdaftar di bursa ASX berhak memiliki tambang penghasil batubara dan berpeluang memproduksi batubara ramah lingkungan. Bersama mitra aliansi strategisnya, keluarga Zulkarnaen, yang juga merupakan pemilik saham utama, Killara akan membayar $2,2 juta untuk sahamnya di BEH. Selain itu Killara mendapat opsi membeli 60% saham di PT Pagun Taka yang bakal mendapat konsesi atas 2337 hektar lahan di Kalimantan Tengah yang oleh Kementerian Energi dan Sumber Alam Indonesia sudah dinyatakan berstatus “Clean and Clear”. Dengan adanya persetujuan tersebut, hak pengawasan operasional atas BEH kini beralih ke tangan Killara yang juga akan mencalonkan personelnya untuk duduk di Dewan Direksi BEH, dan dengan demikian Killara memiliki hak suara mayoritas. Killara juga akan membayar US$3 per ton di atas jumlah 733.333 ton yakni batas cadangan batubara yang dapat ditambangnya, dan ini bakal menjamin bahwa harga pembelian akan tetap US$3 per ton.

Killara telah merampungkan tahap pertama dari teknis kepatuhan membayar izin sewa dan penelitian di lapangan dalam lingkungan BEH. Data eksplorasi yang diberikan oleh pihak penjual, serta karya awal Killara, menjadi landasan bagi berlanjutnya kepatuhan membayar izin sewa dan eksplorasi. Menurut kalangan pejabat perusahaan, dengan produksi yang sekarang, kompensasi tanah, infrastruktur, klasifikasi kehutanan dan informasi geologi penambangan mungkin akan bisa dimulai dalam waktu 4 sampai 6 bulan. Izin produksi (IUP) sudah dinyatakan “Clean and Clear” oleh pemerintah dan mencakup daerah seluas 1002 hektar di kabupaten Tenggarong, provinsi Kalimantan Timur. Lisensi penambangan berakhir bulan Januari 2014 dengan hak memperbarunya secara otomatis dengan BEH. Program Pengeboran sedang dilakukan yang menitik beratkan pada dua target produksi jangka pendek yang telah menjadi pangkal persoalan kompensasi tanah. Program ini diharapkan tuntas dalam waktu dua bulan dan akan memungkinkan dibuatnya rencana penambangan secara terinci. Penambangan dilakukan di lokasi BEH sampai awal tahun 2013 dengan sejumlah batubara ditampung di sebuah fasilitas di dekatnya. Infrastruktur, termasuk jalan, kantor dan sebuah fasilitas kerja


tetap di lokasi dan mungkin akan segera diaktifkan lagi. Satu manfaat besar dari konsesi BEH ini adalah faktor infrastruktur pendukung yang mencakup adanya jalan-jalan yang memberikan akses menuju beberapa fasilitas pemuatan batubara ke kapal tongkang yang semuanya berada tidak sampai 5km dari target produksi. Muatan ini diangkut ke Sungai Mahakam yang pada lokasi-pemuatan lebarnya 450 meter dan dapat digunakan sepanjang tahun. Fasilitas-fasilitas pemindahan muatan ke kapal besar berada 150km ke arah hilir di Delta Samarinda. Tes Kualitas batubara yang dilakukan menunjukkan hasil yang menggembirakan. Ada sampelsampel dari 32 dari ke 46 lapisan luar batubara yang tercantum dalam peta yang disampaikan untuk dianalisa di laboratorium PT Geoservices Balikpapan. Hasilnya menegaskan adanya suatu produk batubara thermal yang langsung bisa dikapalkan dengan CV yang tinggi, abu yang rendah dan bermacam tingkat kadar Sulphur namun umumnya berkadar tinggi. CV pada lapisan luar tadi berkisar antara 5459 kcal/kg sampai 7546 kcal/kg dengan kadar rata-rata 6948. Sesudah mengadakan transaksi- transaksi tersebut Killara tidak akan meneruskan proyeknya di Bengkulu, Sumatra Selatan.

Indonesia

Maiden reserve estimate at Delta operation ALTURA Mining has completed a maiden coal reserve estimate at the Delta Coal operations in East Kalimantan. Delta, which is 33.3% owned by Altura, has reserves of 12.5 million tonnes with significant scope to expand through further drilling of resource areas and exploration of lesser explored sections of the tenement. Delta Coal currently produces and sells a medium energy thermal coal at the annual rate of 1.5 million tonnes and plans to lift production to 2 million tonnes in 2014. The independent coal reserve estimate was completed by Australian-based mining group Xenith Consulting, which estimated 10.4 million tonnes in the proven classification and a further 2.1 million tonnes in the probable classification. The maiden reserve estimates are based on a revised JORC-compliant resource estimate of 61.4 million tonnes after applying realistic mining, metallurgical, economic, marketing, legal, environmental, social and government factors to the resources. The mining factors such as recovery and dilution have been defined from the open cut mining method whereby coal is mined selectively. No metallurgical factors are applicable as the ROM coal is crushed and sold without processing. The mine has two defined resource areas Gunung Lampu in the southeast of the tenement

and the Noni area in the northwest. Both are serviced by a network of roads to the centrally located processing plant. Coal is crushed at the processing facility, from where another contractor is employed to haul coal to the stockpiling and barge

loading facility about 5km away on a river in the Mahakam delta. This facility has stockpiling capacity of 75,000 tonnes. Barges transport coal from the loading facility to the offshore loading point for transhipment into coal ships for delivery to market. Coal is sold unwashed, meaning there is no metallurgical treatment required to achieve a saleable product. The coal is sold as a medium energy thermal product to both the export and domestic markets with all ROM coal considered saleable product. The resources review was completed to allow the inclusion of additional mining areas to be brought into the mine plan and further resources due to increased mining depths in the current pits. The revision resulted in an overall increase from 57.4 to 61.4 million tonnes. The expected production for 2013 is 1.5 million tonnes at a strip ratio of 10.8 bcm/rom tonnes. Production is split evenly between the Gunung Lampu and Noni mining areas. The planned annual production rate from 2014 is 2 million tonnes with the same average deposit strip ratio. Altura is a multi-faceted miner with significant coal, iron ore and lithium projects in Indonesia and Australia, a diverse minerals exploration portfolio, and a profitable mining services arm that provides drilling, geophysical and project development services.

Perkiraan cadangan yang pertama pada operasi Delta ALTURA Mining telah merampungkan perkiraan cadangan batubaranya untuk tahap pertama dalam operasi Delta Coal (Batubara Delta) di Kalimantan Timur. Delta Coal, yang 33,3% milik Altura, mengandung cadangan batubara sebanyak 12,5 juta ton dengan peluang yang signifikan untuk memperluas operasi pengeboran lebih lanjut di daerah-daerah sumber batubara dan eksplorasi atas lahan yang belum tergarap. Delta Coal saat ini memproduksi dan menjual batubara energy thermal bermutu sedang sebanyak 1,5 juta ton dan berencana meningkatkan produksi dan penjualannya menjadi 2 juta ton dalam tahun 2014. Perkiraan independen tentang cadangan batubara itu dirampungkan oleh grup tambang Xenith Consulting yang berkedudukan di Australia. Menurut Xenith Consulting, 10,4 juta ton cadangan batubara Delta Coal sudah terbukti, sedangkan 2,1 juta ton lagi tergolong dalam klasifikasi “mungkin sekali akan terbukti”. Perkiraan cadangan tahap pertama itu didasarkan pada sebuah perkiraan JORC yang direvisi tentang sumber tersebut yakni sebanyak 61,4 juta ton sesudah memperhitungkan faktorfaktor operasi penambangan, metalurgi, ekonomi,

pemasaran, segi-segi hukum, lingkungan, sosial dan pemerintah. Faktor-faktor pertambangan seperti pengertian tentang recovery dan dilution telah diambil dari metoda tambang terbuka di mana batubara ditambang secara selektif. Faktorfaktor metalurgi tidak diterapkan karena batubara ROM dihancurkan dan dijual tanpa diproses. Tambang Delta mempunyai dua sumber batubara yang sudah pasti yakni Gunung Lampu di bagian tenggara dan Noni di kawasan timur laut. Kedua sumber itu dihubungkan dengan satu jaringan jalan menuju processing plant (pusat fasilitas pengolahan) yang berlokasi di daerah bagian tengah. Batubara dihancurkan di fasilitas tersebut di mana sebuah kontraktor lain telah ditugasi untuk mengangkut batubara ke pusat penampungan dan pemuatannya ke dalam kapal tongkang yang letaknya sekitar 5km di sebuah sungai di delta Mahakam. Fasilitas itu dapat menampung 75,000 ton batubara. Kapal-kapal tongkang mengangkut batubara dari fasilitas penampungan ke pusat pemuatan lepas pantai untuk dimuatkan ke dalam kapal-kapal batubara dan siap dipasarkan. Batubara dijual tanpa dicuci, artinya batubara itu dapat dijual sebagai produk siap-jual tanpa melalui

proses metalurgi. Batubara tersebut dijual sebagai produk thermal energi bermutu sedang ke pasaran dalam dan luar negeri karena semua jenis batubara ROM dianggap sebagai produk yang siap jual. Revisi tinjauan diselesaikan untuk memungkinkan penambahan lahan tambang baru ke dalam rencana pengembangan tambang dan sumber-sumber lainnya akibat semakin dalamnya tambang-tambang batubara yang sekarang. Revisi ini mengakibatkan ditingkatkannya seluruh jumlah sumber batubara dari 57,4 juta ton menjadi 61,4 juta ton. Produksi batubara ROM tahun 2013 diharapkan mencapai 1,5 juta ton dengan strip ratio 10,8 bcm/rom. Produksi dibagi rata antara daerah tambang Gunung Lampu dan Noni. Tingkat produksi tahunan dari tahun 2014 direncanakan sekitar 2 juta ton dengan strip ratio sumber batubara yang rata-rata sama. Altura adalah sebuah perusahaan tambang aneka jenis (multi-facet) dengan proyekproyek batubara, bijih besi dan lithium yang signifikan di Indonesia dan Australia, berbagai jenis proyek eksplorasi mineral dan perusahaan jasa yang menguntungkan dalam bidang pengeboran, geofisika dan pengembangan proyek.


Indonesia coal briefs Orpheus drilling at B4 Orpheus Energy is undertaking an exploration drilling program at its Block 4 (B4) project in East Kalimantan. The program will comprise 10-13 drill holes to a nominal depth of 100 metres and is expected to take about a month to complete. The aim is to achieve an initial JORC-compliant resource at the 3126 hectare B4 concession, one of two contiguous concessions owned by ASX-listed Orpheus. The other concession, Block 3, is to the north of B4. The exploration target for B4 and B3 is 5-10 million tonnes. B4 is about 125km northwest of the closest barge-loading facility and is directly accessible by log hauling road. Initial work in 2007 identified multiple high-calorific seams that provided a target for further exploration. Work in July 2011 confirmed multiple seams with sample assays including 8095, 8055 and 7270 kcal/kg (adb). A high quality sample taken in 2007 featured low ash of 1.9% adb, low total moisture (6.5% ar), and energy content of 7253 kcal/kg.

Bayan Resources tightens belt PT Bayan Resources is tightening its belt to cope with tough times in the global coal industry. President director Eddie Wai Fong Chin says the company is imposing a cost-efficiency program due to declining revenues and says it is continuing to reduce stripping ratios to reduce mining costs. This year the company has reduced its average stripping ratio to 11.912.5:1 from the previous 14.7:1, which has meant a saving of US$3 per tonne. The company is also renegotiating contracts with its contractors in an effort to reduce costs. Bayan also plans to lower its production volume this year by between 8 and 14.1% to about 14 million to 15 million tonnes. It is focusing on development of the Tabang project in East Kalimantan to meet future growth plans.

Realm seeks offtake partners Following completion of a feasibility study, Realm Resources is focused on securing strategic offtake partners and financing for the Katingan Ria project, and advancing permitting. The study supports development of a 2.5 million to 3 million tonnes/annum open cut mine. Katingan Ria, in Central Kalimantan, is an open-cut operation that will supply low ash and sulphur coal ideally suited for Indian and Chinese power generation. On the permitting front, the company has taken key steps towards upgrading the In-Principle Forestry (IPP) Operations permit to a Final Forestry Operations permit by the end of the year.

Pan Asia appointment Pan Asia Corporation has appointed Tim Gazzard as a non-executive director. He is also senior vice president with Noble International in Singapore and is head of Noble’s Indonesia Energy Coal Business. The appointment follows Noble taking a 5.34% equity stake in Pan Asia and being appointed as strategic advisors for its TCM Thermal Coal Project in South Kalimantan. TCM is a high calorific value (6200 gar) underground thermal coal proj-

ect. Pan Asia has completed a positive base case feasibility study on the southern half of the project and has significantly upgraded the JORC resource to 129 million tonnes. The company is planning the upgrade of the study to include the increased resource which should provide a mine-life in excess of 30 years. Pan Asia is seeking to secure all pre-production approvals by the end of 2013 so that mine development can start.

Terra acquires terminal stake Terra Resources Trading Singapore has acquired 30% of PT Palaran Sinergi Mas (PSM), a fully licensed multi-product loading river terminal on the Sanga Sanga River, Palaran, East Kalimantan. PT PSM is operating as a thermal coal loading facility, with two loading points and one more under development. PT PSM is strategically located on the Sanga-Sanga River, 6-8 hours from the transhipment point, and is the only terminal in the area with a formal port licence, which means it is not limited to loading thermal coal but can also facilitate any types of commodities and cargo. Current monthly capacity is 100,000 tonnes but Terra is planning to expand this to 250,000 tonnes to meet increased demand in the Palaran area.

Geo Energy acquires fifth concession Geo Energy Group has signed a conditional sales and purchase agreement to acquire a fifth mine concession. The new concession area spans an area of 4600 hectares and is estimated to contain higher calorific value coal of 7200 kcal/kg and semi-coking coal. Since its listing on the Singapore Exchange in October last year, Geo Energy Group has wasted no time in expanding its coal production. It has signed agreements to obtain five potential new mining areas in Indonesia, all of them near its current mine in East Kalimantan.

IndoMet to start production IndoMet Coal, a joint venture between BHP Billiton (75%) and PT Adaro Energy (25%), is expected to start production in the third quarter of 2013. The IndoMet project covers seven contracts of work in East and Central Kalimantan. Coal reserves are estimated at 774 million tonnes.

Palace prepares for mining Palace Resources is completing the terms of an MoU with PT Solusi Coalindo with respect to a potential coal production agreement at the KCM project. The subject of the MoU is Solusi Coalindo’s coal exploration project which comprises about 200 hectares, which in turn is part of a larger 4000 hectare Coal Contract of Works. The vendors have negotiated an offtake agreement with an independent third party which will necessitate commencement of a re-stripping process with a view to commence mining of coal on KCM during July. As part of the agreement, KCM was to deliver 8000 tonnes by the end of July.

Parker Hannifin


Around the world

African Energy acquires Botswana project African Energy has completed the acquisition of the 1.3 billion tonne Mmamanstwe Coal Project in Botswana from Aviva Corporation. In early July Aviva became the registered holder of 100% of the prospective licences after obtaining regulatory assent from the Botswana Government. With completion of the deal, African Energy has secured the rights to a total of 3.8 billion tonnes of coal in Botswana. It also aims to raise a further Aus$3.5 million from Sentient Executive GP, IV, via the issue of a further 29.16 million shares. It had earlier raised Aus$5 million through a placement with Sentient. The Mmamantswe project is in southeast Botswana. A 2009 scoping study concluded that a 10 million tonnes/annum open-pit mining operation could annually produce 2.4 million tonnes of washed export coal and 2.1 million tonnes of middlings suitable for power station fuel.

Celsius starts 2013 Uzgen exploration Celsius Coal has started work for the 2013 exploration season at its Uzgen Basin Coking Coal Project in the central region of the Kyrgyz Republic. Equipment has been mobilized to the Kargasha/Kokkia project areas to support an extensive multi-rig diamond drilling program. The company plans to drill between 4000 and 5000 metres of diamond core in the target areas. Following the success of the 2012 exploration season, which resulted in a maiden JORC inferred resource of 255 million tonnes, the aim of the 2013 program is to increase the total resource inventory; target exploration in areas with limited historical drilling which are most prospective for the highest ranking coals; move some inferred resources into the indicated category; and collect data for mining studies. In addition, bulk samples will be collected and tested, and results distributed to prospective customers and off-takers.

Approval for Crown Mountain drilling The British Colombia Ministry of Energy and Mines has issued exploration approval to ASX-listed Jameson Resources for additional drilling at its Crown Mountain Coking Coal Project. The company has a 90% interest in Crown Mountain and a 100% interest in the Peace River coal projects, both in British Columbia. Approval will enable the company to undertake large diameter diamond core drilling for the collection of large samples. The prime objective of this summer’s exploration program is to carry out washability test work on the core samples to determine plant yield as well as to develop a definitive understanding of the coking characteristics of the clean coal product.’ The approval also includes a number of RC drill holes designed to provide Jameson with the option to upgrade a portion of the Southern Extension inferred resource and to delineate a possible modest expansion of resources in the North and South blocks.

Maiden resource at Colombian project Ascot Resources has issued a maiden JORC resource at its Titiribi Coal Project in Colombia with vitrinite levels up to 80% and Free Swelling Indices values up to 8.5. The maiden resource is 8.1 million tonnes classified as 5.2 million tonnes measured, 700,000 tonnes indicated and 2.2 million tonnes inferred. There appears substantial scope to grow this resource size in surrounding areas from preliminary surface geophysical work on surrounding areas. ASX-listed Ascot holds a 90% interest in the project and the resource results highlight potential to produce a premium quality coking coal product, perhaps as early as late 2014, with low impurities.

Rio starts Kestrel Extension production Rio Tinto has started production at the Kestrel Mine Extension, a US$2 billion dollar project near Emerald in central Queensland. The extension will add 20 years to the life of the Rio managed Kestrel mine, the company’s only underground coal operation. The extension project involved construction of a new longwall, infrastructure such as a 7.9km overland con-

veyor and upgrades to the existing Coal Handling and Preparation Plant. This will allow a new series of underground panels to be mined to the south of the existing operation. Kestrel mine general manager operations John Coughlan says, “Over the coming year and a half we’ll see a gradual transition of production as our existing operation, Kestrel North, winds down and the new Kestrel South operation ramps up. Kestrel South is expected reach full capacity by the end of 2014 and produce an annual average of 5.7 million tonnes over the next 20 years.”

Initial resource for Amaam North An initial JORC-compliant resource has been announced by Tigers Realm Coal for the Amaam North project in Chukotka province of far eastern Russia. The 26.8 million tonne resource comprises 7.2 million measured tonnes, 4.6 million indicated tonnes and 15 million inferred tonnes. This initial resource represents a small part of the Amaam North licence where thick, near-surface, shallow dipping coking coal was delineated in a 40-hole drilling program completed in April 2013. A pre-feasibility study for this project is expected to be completed in the third quarter while a definitive feasibility study is due for completion in the fourth quarter. At the Amaam project 6967 metres of drilling has been completed in Area 3 to upgrade resource confidence in the initial production area and to provide data for converting the remainder of Area 3 to a mining licence. A bulk sample auger drilling program will be completed during the third quarter. Tigers Realm is earning up to 80% in the Amaam project, which consists of the Amaam and Amaam North tenements.

First drawdown of EIG facility for Coalspur Coalspur Mines has achieved financial close and first drawdown of US$37 million in regards to the senior debt facility secured from EIG Global Energy Partners for development of the Vista Coal Project in Alberta, Canada. The company is working towards finalizing regulatory approval for Vista which will allow for the commencement of construction for the project in September 2013. Upon securing regulatory approval, Coalspur expects to make further drawdowns of the EIG senior debt facility. Coalspur’s president and CEO Gill Winckler says, “We are very pleased with the EIG facility and the confidence it demonstrates in Vista. Securing a facility that covers up to 75% of development capital for Vista is a major achievement and a key milestone for Coalspur. The facility allows us to now embark upon development of Vista with production on track for the first half of 2015.”

Drilling confirms Rangal Coal Measures Exploration drilling by Liberty Resources has confirmed better than expected results within the Rangal Coal Measures at the company’s Bowen Basin coal tenement in Queensland. Preliminary scout drilling has confirmed average coal intercepts of between 5 and 6 metres of Leichhardt (L13) at 44 metres and 10 metres of Vermont plies between 58 and 70 metres, the upper being 4 metres at 58 metres. The coal has been cored and is being submitted for assay to Bureau Veritas laboratory for coking and PCI attributes. These results have confirmed the Rangal Coal measures are present and specifically, that the intercepts are consistent with the target seams of Leichhardt and Upper Vermont coal seams. Following on site mapping of the geology by Liberty’s consultant geologist, it was determined that a significant portion of the tenement included the prized Rangal Coal measures being mined adjacent to the block at BHP’s Daunia mine. The Leichhardt seam (L13) and Vermont Upper seams are ranked as coking and PCI coals by BHP. Drilling is continuing to expand on the results with the aim of producing a 2012 JORC-compliant measured resource statement. The shallowness of the coal is significant as it is likely to be easily reached via open pit methods with a low waste to ore ratio, and therefore likely to be economic. September 2013 l Coal Age Indonesia l 55

Supplier News

Benefits of Whittle Enterprise Optimization MONEY has a time value and, like everyone, mining companies want it now. Bottlenecks prevent mine operators from getting the money now and Whittle Consulting’s Enterprise Optimization software helps solve these issues, thereby accelerating cash flow and increasing NPV by 5-35%. Whittle Consulting’s CEO Gerald Whittle says the planning process for many mining companies involves the use of fixed decisions, which should be dynamic. He says many decisions are made too early, before the options are analysed, and silo based objectives are set, which are often misguided. “Enterprise Optimization (EO) overcomes the analytical challenge.” He says the advantages can be seen when considering 10 mechanisms involved in mining – pit design, pit phasing, mine scheduling, cut-off grade, stockpiling, blending, processing (washing), product, logistics and capital. With current general practice pit design is based on stripping ratio only while with EO it is based on value, considering CV and sulphur content as well as the cost of mining, using activity-based costing. Advanced techniques used are Whittle Software for block models and Minex software for stratigraphic models. Current practice sees pit phasing largely avoided due to in-pit dumping, continuous mining methods, the need to minimize costs and avoid dewatering. With EO pit phasing is applied wherever possible and takes into account low early stripping ratio, a highly profitable first cut and the fact that 30% of material must go ex-pit anyway. Current practice sees mine scheduling consider a constant coal production rate, by location; a constant stripping ratio; steady state mining with full equipment utilization; and mimic dragline. EO sees this based on value, considering variable stripping ratios, different production rates

Whittle Consulting’s Enterprise Optimization looks at the entire mining chain from pit to port and market. by individual mines and it can lead to idle equipment from time to time, which is optimal. In considering cut-off grade, general practice sees all coal shipped while with EO the flow of value is optimized through the bottleneck in the system (often the port); low CV and high sulphur coal is discarded; cut-off can reduce resource utilization and increase stripping ratio; and value is increased substantially. Stockpiling is not considered in current general practice while with EO short-term stockpiling, even in small amounts, can enhance blending substantially. Using EO optimized blending provides simultaneous control of schedule, cutoff, stockpiling and processing by multiple mines or faces for multiple products while in general current practice simple rules are followed in blending. With processing (washing) general practice sees steady state coal washing rules adopted while with EO coal wash curves involve great flexibility in recovery v throughput v product quality; and optimal wash policy must change as mine production varies and to match with an optimized product strategy.

General practice sees mine operators ship the product they have while with EO product strategies are used including the fact that calorific value, ash and sulphur can vary coal prices by a factor of four or more; and can determine whether the mine, plant, port or market is the bottleneck in the system. Lowest cost is the key determining factor in current practice when it comes to logistics. With EO flexibility and higher cost alternatives are considered and can enhance value creation if applied in the right circumstances. When considering capital general practice sees minimal outlay and maximum utilization of all parts of the system. EO sees full utilization of the primary bottleneck, which is the most expensive capital component and is usually the port. It is false economy to try to be capital efficient on non-bottleneck areas, such as mining. Overall, with current general practice what appears to be a viable plan may or may not succeed. EO delivers 5-25% NPV uplift, thus maintaining viability. It provides significantly more cash in the early years, and is dynamic and responsive to the market.

Carlson software built to meet industry needs CARLSON Geology, Carlson Underground Mining and Carlson Surface Mining modules from Carlson Mining are easy-to-learn, affordable, and feature fast-paced technological development driven by clients’ needs. This explains why Carlson Software is the largest provider of software for mines in the United States and is expanding to serve companies in Russia, India, South America, Europe, Australia and more. Whether the application is permitting, geologic mapping, underground mining, surface mining, reserves studies, reclamation or machine control, Carlson provides uniquely powerful automation combined with its trademark ease-of-use. Over 25 years of development, Carlson has moved from focusing on mapping and permitting tools, to introducing the concept of lisp programming inside AutoCAD to enter the ‘take-up’ notes of the underground surveyors. This progression

has led to a comprehensive set of mine mapping tools, including projections, symbol placement and mine quantity calculations. Carlson Mining 2014 will offer dozens of improvements to the feature-rich software, including: n Parent/Child Strata Splits - Improved reporting in Surface Mine Reserves to automatically report quantities as parent strata for areas without children strata. n Surface Mine Reserves - Improved speed to run more than three times faster with an option added to process with low precision on grid cell subdivision for running another two times faster for quick, rough calculations. n Underground Solids - New set of commands for underground cavities to model, draw, label and get quantities. Other recent enhancements include expanding 3-D abilities within bench pit design, added meth-


ods to assign block sequence by rules with added real-time display of selected quantities and qualities in scheduling selection; augmentation of the haul truck cycle analysis routines, enhanced visual feedback in the underground timing sequencing, and increased ability to produce customized, more professional reports. In addition, Carlson machine control software, Carlson Grade, TruckPro, and Fleet Manager Office, allows mine management to increase productivity, accurately track materials, and enhance safety on the site. For reclamation needs, Carlson’s unique Natural Regrade program enables mining operations to not only meet, but also exceed environmental standards. Natural Regrade with GeoFluv creates a landscape that harmonizes with natural forces and does not require expensive long-term maintenance and repair.

Supplier News

KOPEX: Making the impossible possible LAST November the Pniówek hard coal mine saw the end of mining its C1 longwall, the first one in the Polish mining industry that had been equipped with an automated longwall system intended for mining thin and medium-thickness coal seams and ensuring much higher productivity than achieved so far in longwalls with similar parameters. The success was owed not only to the technology encompassing a series of innovative solutions but also to properly qualified people who operated it on a daily basis. The automated longwall system was due to be turned on again in the spring of 2013 at the new C-2 longwall that is also classified as category 4 of methane hazard and methane and coal outburst hazard. When the C-1 longwall opened in April 2012, no employee suspected that some of the work might be done by an automated system or, even more so, that the mining work might end ahead of schedule. The C-1 longwall was mined in the 404/1 coal bed, about 1.45 metres thick, at a depth of 1000 metres. The system ensured higher output than previously under comparable conditions, ie with methane emission of about 60 cubic metres/minute. “I’ll repeat the words of my department employees after they ended the works that they would not like to go back to the previous solutions they used to apply, primarily owing to the automatic travel of the shield, advancing of the conveyor, partly automated operation of the longwall shearer and predominantly the fact that they did not have to work directly in the area where the shields were adjusted,” says Sławomir Polak, head of the department selected by mine management to operate the system. In the automatic operation, the shields perform the travelling and advancing cycle independently along the move of the longwall shearer. The system allows the shields to move and the conveyor to advance either from the bottom road (in automatic mode) or directly from the longwall, but nevertheless at a distance even four times higher than previously. Improvements offered by the system allowed for a reduction in the number of employees in the longwall. “For employees, the automated system means comfort of work as well. Some of the responsibility is assumed by the system that records every event in the longwall and gives them a proper notification in emergency situations. Then, the employee feels comfort that beside him there is someone to control it,” says Slawomir Polak. Power and mechanical operation dispatchers monitored the system on the surface, watching the real time progress of the work in the longwall and in an emergency situation could respond quickly. “If there was a failure, a message popped up to show which component required repairing, thus we got more time that could translate directly into output,” says the mine’s power and mechanical operation dispatcher. Technical facilities include a KSW-460NE1 longwall shearer, TAGOR11/26 powered roof support with electrohydraulic control system made by TIEFENBACH, Rybnik-850 armoured face conveyor, GROT-850 beam stage loader and a SKORPION-1800P coal crusher. The longwall system has electrical equipment along with IPC integrated control, visualization, parameter adjustment and monitoring station supplied by Kopex Electric Systems and a loud speaking, locking and signalling system SSG-2 by ATUT.

The automated longwall system used at the Pniówek mine.


Product News

Caterpillar is developing the EL 1000 shearer, which will accommodate seam heights from 1.6 to 3.2 metres.

Caterpillar previews EL 1000 shearer CATERPILLAR Global Mining’s advanced technologies are enabling miners to increase production as well as enhance safety. Centre stage at the recent Longwall USA show was a preview of the newest Cat shearer model, the EL 1000, designed specifically for low and medium height seams. Currently in development, the EL 1000 will add depth to the already expansive Caterpillar range and will offer a precisely designed system with the power, production potential, controllability and safety features required to address future demands and varying geological conditions in this segment. Preliminary specifications for the EL 1000 shearer indicate that the new model will accommodate seam heights from 1.6 to 3.2 metres, will deliver an estimated cutting power of

1000kW (1600 horsepower) and will provide haulage power in the order of 2 x 100kW (2 x 134 horsepower). Reflecting the basic design of proven Cat longwall shearers, the EL 1000 will feature massive, one-piece-mainframe construction, exchangeable modular components, advanced automation, and Ethernet communication. As with all Cat Global Mining products, the worldwide network of Cat dealers will add significant value to the EL 1000, ensuring the highest quality product support - replacement parts, competent timely service and industry expertise. Cat dealers understand longwall operators’ needs for reliable, continuously high production, and they have the capabilities to help accomplish that goal.

Meantime, safety remains the focus of Cat MineStar System applications and the new Detect Personnel system reinforces that focus. Integrated with the Cat PMC-R electrohydraulic roof-support control system, which is built to reliably identify the presence of personnel in longwall faces through RFID (Radio Frequency Identification), the Detect Personnel system is designed to avoid contact between personnel and moving equipment by monitoring safety zones and access authorization. Caterpillar represents the largest single source for complete longwall mining systems and components, including roof supports, plow systems, shearers, face conveyors and CST drive systems, as well as a full range of supporting equipment, such as roof-support carriers, continuous miners, and belt conveyor systems.

Simulators for underground coal mining IMMERSIVE Technologies has furthered its commitment to the mining industry with the development of simulators (Conversion Kit®) for underground coal mining. Simulators include continuous miners, shuttle cars, roof bolters, longwalls and miner bolters, and feature a previously unseen degree of simulation realism and Immersive Technologies’ new RealMove™ natural movement system. Bolstered with a demonstrated capability to deliver quantified improvements in cost savings, productivity and safety, Immersive Technologies offers a degree of training effectiveness not previously available to underground coal mining operations. “Until now, there has been no training solution on the market which fully addresses the unique training requirements for underground coal equipment operators. These new products highlight our ongoing approach to invest in driving customer safety and profitability though our technology and extensive mining experience,” says Immersive Technologies’ Underground Coal Business Unit manager Richard Beesley. “The ability to train operators to react correctly during potentially life threatening situa-

tions is invaluable in underground mining. Many dangerous situations rarely take place so training operators to understand proper protocol in a safe environment is essential for underground operations.” The simulators provide an authentic and comprehensive recreation of an underground coal mining work environment and support the following models with plans to continually develop new machines: q JOY 14CM15 Continuous Miner with wireless TX2 or TX3 remote q JOY 10SC32 Shuttle Car q Fletcher CHDDR Roof Bolter q Caterpillar EL3000 Longwall q JOY 12CM30 Miner Bolter The simulators have extended Immersive Technologies’ Complete and Scalable Solution for operator workforce development into the underground coal mining industry. The new machines operate on the CM360 Advanced Equipment Simulator. This platform was built upon the proven design and configuration of the Immersive Technologies’ UG360 Advanced Equipment Simulator, which utilizes the full 360 degree visual experience recognizing the distinct operating conditions of the underground mining environment. It features an


entirely removable motion platform to permit both seated and remote operated simulation from within the one platform. Richard Beesley, an experienced roof bolter operator says, “The expanded product line is the result of intense research and development drawing from original equipment manufacturers, industry best practices, subject matter experts and safety requirements specific to the underground coal mining industry.” The innovation continues with the development of the world’s first RealMove™ natural movement system. Through this technology the operator can naturally walk around the 3D virtual environment to avoid hazards or to perform a full walk around of the machine. This is a key feature for remote machine operators where awareness of one's surroundings can be the difference between life and death. Immersive Technologies is the world’s largest, proven and tested supplier of surface and underground Advanced Equipment Simulators to the global mining industry. The company has achieved this unique position by focusing on its mission to make every mining and earthmoving equipment operator in the world safer and their employer more profitable through its simulation technologies.

Product News

New P&H 2650CX hybrid shovel from Joy

LEFT: The new P&H 2650CX diesel-electric rope shovel delivers a 65-ton payload.

JOY Global has announced a first-of-its-kind generation of loading equipment with a new hybrid shovel. The P&H 2650CX is a diesel-electric rope shovel with an articulating hydraulic clamshell attachment designed to deliver a 65-ton payload. The machine will four-pass load 240-ton trucks and be capable of loading up to ultra-class 400 ton trucks. Engineered to blend the high productivity of electric mining shovels with the mobility and flexibility of hydraulic excavators, the P&H 2650CX is designed to deliver a 15% ‘Total Cost of Ownership’ reduction when compared to large hydraulic excavators. This is achieved by way of a combination of reduced fuel consumption and improved availability as well as decreased maintenance and repair costs. “Fuel consumption will be reduced by as much as 25% through using proven power regeneration from our electric motor and drive systems technology from our P&H Letourneau-Series Wheel Loaders,” says Joy Global Surface Mining’s VP product marketing and engineering John Koetz. “The drive system used will be approximately 50% more efficient than comparable diesel hydraulic systems.” In addition to reduced fuel consumption, the P&H 2650CX will decrease the hydraulic routings, on-board fluid and pumps. This substantially improves system level reliability, efficiency and maintainability, which can result in increased machine availability over traditional diesel-hydraulic excavators. The first machine is slated to be placed in mine in the fourth quarter of 2013. Joy Global is a worldwide leader in high-productivity mining solutions. Through its market-leading P&H and Joy brands, Joy Global manufactures, markets and services original equipment and related aftermarket parts for the surface and underground mining industries. Joy Global’s products and related services are used extensively for the mining of coal, copper, iron ore, oil sands, gold and other mineral resources. September 2013 l Coal Age Indonesia l 59

Events

Coal calendar of events Mining Indonesia 2013 September 4-7, Jakarta, Indonesia. www.pamerindo.com Discover Mongolia September 5-7, Ulaanbaatar, Mongolia. www.discovermongoliaforum.com XV International Congress for Mine Surveying September 16-20, Aachen, Germany. www.ism-germany-2013.de Coal Club Indonesia September 17. www.coalclubindonesia.com Mining Mongolia 2013 September 19-21, Ulaanbaatar, Mongolia. www.miningandconstruction mongolia.com China International Steel & Raw Materials Conference 2013 September 24-26, Qingdao, China. www.ironoreconference.com XVII International Coal Preparation Congress October 1-6, Istanbul, Turkey. www.icpc2013.com/en/ 2013 Coal Handling & Storage October 22-24, St Louis, Missouri, USA. www.coalhandlingshow.com

Inaugural Sumatra Miner conference WITH Sumatra striving to benefit from the potential of the island’s vast coal resources, but hindered by a global coal downturn, lack of capital investment, poor infrastructure and a trend to move away from low ranking coal, the timing of the Sumatra Miner inaugural coal mining and technology conference and exhibition is perfect. The event will be held in Palembang from November 19-21, 2013, and is being organized by Mining Media International, publishers of Coal Age Indonesia and The ASIA Miner. Producers and explorers in Sumatra are invited to showcase their success by participating in the inaugural event while equipment and service providers are also invited to attend the event or

the pre and post conference workshops in order to keep participants abreast of the latest technologies available. 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. n For information visit www.sumatra-miner.com or email [email protected] or [email protected].

Two mining clubs launched TWO new mining clubs for Indonesia - Coal Club Indonesia and Djakarta Mining Club - were launched at a gala dinner in Jakarta in April with more than 130 people in attendance. The clubs have been organized by Mining Media International, publishers of The ASIA Miner and Coal Age Indonesia, and are being coordinated by the Mining Media team in Indonesia with support from the Australian office. The launch featured addresses from representatives of principal foundation member Caterpillar along with gold sponsors Reed Exhibitions and Weir Minerals. Coal Club Indonesia will meet regularly at various coal strongholds, including Kalimantan and Sumatra. It represents a natural development for Indonesia’s thriving coal industry and has been developed to enable B2B and B2G connections to be made, thus creating opportunities for local/domestic and international businesses in a rapidly growing industry.

China Coal & Mining Expo October 22-25, Beijing, China. www.chinaminingcoal.com Djakarta Mining Club November 11, Jakarta, Indonesia. www.djakarta-miningclub.com Sumatra Miner: Inaugural Coal Mining & Technology of South Sumatra November 19-21, Palembang, South Sumatra. www.Sumatra-miner.com Coal Club Indonesia December 4. www.coalclubindonesia.com 60 l Coal Age Indonesia l September 2013

The next Coal Club Indonesia networking event will be on September 17 with another scheduled for December 4. 2014 events are scheduled for February 18, April 21, June 12, August 18, October 20 and December 3. Djakarta Mining Club will meet regularly in Jakarta and serves to foster bilateral business relationships while promoting sustainable mineral production through educational outreach, promotion of exploration and planned dialogue between mining stakeholders. The next Djakarta Mining Club event is scheduled for September 2 with another event on November 11. Both clubs have been well received since the launch with interesting speakers and strong attendance. Further information about memberships and sponsorships is available by emailing Dimas at [email protected] in Indonesia or Lanita at [email protected] in Australia or visit www.djakarta-miningclub.com or www.coalclubindonesia.com.

Advertising index All Rig Lifting Indonesia.........................................................................................18 Australian International School ............................................................................57 Beumer Group..............................................................................................VDMA 5 Carlson Software ..................................................................................................59 Coal Club Indonesia ...............................................................................................9 Erlau AG.......................................................................................................VDMA 9 Hazemag Group GmbH .......................................................................VDMA 15, 19 Hermann Paus .............................................................................................VDMA 7 Kamat Pumpen GmbH & Co KG ...............................................................VDMA 20 Liebherr ....................................................................................................VDMA IFC Maschinenfabrik Gustav Eirich GmbH & Co KG..........................................VDMA 3 Parker Hannifin .....................................................................................................18 Pronto Software ...................................................................................................IFC Putzmeister ................................................................................................VDMA 12 RWE Power International...........................................................................VDMA 18 SMEC International ..............................................................................................BC Sumatra Miner .....................................................................................................IBC Voith Turbo...........................................................................................VDMA 17, 23

SUMATRA MINER

Coal Age. Indonesia. Sumatra on the rise. Sumatra sedang bangkit. Adaro an Indonesian success story. German mining technology

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