CAI 2014 1 2006-Fourth quarter YOL - The ASIA Miner · PT Bukit Asam is upgrading the capacity of...

Coal AgeIndonesia

®

Edition 6 May 2014

A Mining Media publication www.mining-media.com

Path tosuccess

Cokal production within a yearProduksi Cokal selama satu tahun

Pameran Pertambangan Internasional 2014

Ulasan Sumatra Miner 2014Sumatra Miner preview

International Mining Expo 2014

Perjalanan Menuju kesuksesan

FEATURESRoad to successCokal Limited is well advanced on the road to production at Bumi Barito Mineral Coking CoalProject in Central Kalimantan. The company expects production to begin in early 2015 at aninitial annual rate of 375,000 tonnes... .......................................................................................3

Sumatra Miner previewPreparations are progressing well for the inaugural Sumatra Miner conference and exhibi-tion wat the Aryaduta Hotel in Palembang, South Sumatra, from October 22-24 ...............25

IMEX 2014The inaugural IMEX conference and expo will be in Las Vegas from September 23-25 ....31

INDONESIACoal production in Indonesia this year is set to grow beyond the 421 million tonnes producedlast year, despite the Government downsizing its production target. The Indonesian CoalMining Association expects production to reach as much as 450 million tonnes... ..............10

Cost reduction programs combined with the solid performance of its power business is help-ing cushion Banpu from the impact of unfavourable coal prices. ........................................13

PT Bukit Asam is upgrading the capacity of Tarahan Port in South Sumatra through construc-tion of new jetty that can accommodate a cape size vessel.................................................14

Killara Resources has entered into an agreement with contractor Berkah Ciwi Lestari Kaltimfor development of and production from its Borneo Emas Hitam coal project.......................16

Jatenergy has signed a cooperation agreement with Realm Resources to jointly maximize thevalue of adjoining coal resources in Central Kalimantan. .....................................................20

Churchill Mining advises that the International Centre for Settlement of Investment Disputeshas rejected the Republic of Indonesia’s challenges to the Tribunal’s jurisdiction. . ..............21

REST OF THE WORLDKyrgyz RepublicInferred resources at Celsius Coal’s Uzgen Basin project have increased by round 16% ..29

PakistanA No Objection Certificate has been issued for Block VI of the Thar Coalfield...................29

CanadaJameson Resources continues to advance the Crown Mountain Coking Coal Project . ...30

MongoliaViking Ashanti fast-track production at Auminco’s Berkh Uul project ....................................30

Adaro to lift production 7% - 12 Orpheus cash flow positive - 17 New feeder at Delta project - 19

DEPARTMENTSAdvertisers’ index .............................................46Events ...............................................................46From the Editor ...................................................2Indonesian briefs ..............................................23Product news ................................................... 42Supplier news ....................................................37

Coal AgeIndonesia

®

Edition 6 May 2014

A Mining Media publication www.mining-media.com

Path toPath tosuccesssuccess

Cokal production within a yearProduksi Cokal selama satu tahunProduksi Cokal selama satu tahun

Pameran Pertambangan Internasional 2014Pameran Pertambangan Internasional 2014

Ulasan Sumatra Miner 2014Ulasan Sumatra Miner 2014Sumatra Miner preview

International Mining Expo 2014

Perjalanan Menuju kesuksesan Perjalanan Menuju kesuksesan

Although falling coal prices have put pressure onproducers around the world, including inIndonesia, the local industry is still growing, withCokal Ltd one company that is moving along thepath to production. Pictured is Cokal chairmanand CEO Peter Lynch at an outcrop of cokingcoal at the BBM project in Central Kalimantan.Production is expected to start at BBM in early2015. (see page 3).

Photo courtesy Cokal Ltd

Indonesia

May 2014 l Coal Age Indonesia l 1

2 l Coal Age Indonesia l May 2014

Timely decision to postpone royaltiesAT a time when low prices are putting a severe strain on the thermalcoal industry, Indonesia’s Government is to be applauded for postpon-ing plans to increase royalties. It appears the government has listenedto small and medium miners concerned about the extra burden the pro-posal would create. A group of miners met Energy Ministry officials inlate March to state their opposition to the plan to raise coal royalty pay-ments across the board to 13.5% from the current 3-7%. Among con-cerns raised were low current prices, a declining imported coal marketin China and intense competition to sell coal in India.

Subsequently a spokesman for the ministry’s Directorate for Mineralsand Coal said the plan had been postponed because of low prices, stating it was not agood time to implement an increase. It is not certain how long the postponement will standbut for the sake of the industry, it must be as long as prices remain depressed.

Major Indonesian companies currently pay 13.5% coal royalty while small and mid-sizedproducers pay 3-7%. The proposal is to impose a uniform 13.5% for all small and mid-sized producers holding IUP coal mining licences. It would not affect coal contract of work(CCOW) holders. The price slump means most Indonesian producers, including majors,face tough decisions likely to result in closure of unprofitable mines. Asia ResourceMinerals (ARMS), Indonesia’s fifth biggest exporter of thermal coal, is one such miner. Itis considering closing its largest pit, Lati, where almost half its 2013 production wassourced but is not alone as Glencore Xstrata, Rio Tinto and BHP Billiton have either halt-ed coal operations or shelved expansion plans.

Prices in late March last week dropped to $73 a tonne, the lowest since November 2009,amid a supply glut that’s projected by UBS AG to be the equivalent of 4% of annualseaborne trade this year. ARMS’ chief executive officer Nick von Schirnding says it iscrunch time for the business and for the coal industry as a whole. “We are just break-even,but if this level of thermal coal price continues for the rest of the year, and bear in mind wehaven’t been above $80 this year, we may have to take further action.”

Indonesia can ill afford to see widespread mine closures and the government must dowhat it can to support the industry in these difficult times.

Waktu yang tepat untuk menangguhkan royaltyDITENGAH-tengah harga rendah yang sedang mengakibatkan ketegangan dalam industribatubara termal, penghargaan pada pemerintah Indonesia yang menangguhkan rencana-rencana kenaikan royaltinya. Nampaknya pemerintah ada mempertimbangkan keluhankeprihatinan tambang-tambang kecil dan menengah atas tambahan beban yang harusmereka pikul karena rencana-rencana tersebut.

Sebuah kumpulan penambang menemui pejabat-pejabat Kementerian Tenaga/Enersi diakhir Maret mengajukan oposisi mereka terhadap rencana kenaikan royalti batubara dari3.7% ke 13.5%. Antara keprihatinan yang diajukan termasuk harga rendah pada masa ini,pasaran batubara impor di Cina dan perdagangan barubara yang sangat kompetitif di India.

Menyusul kejadian tersebut jurubicara Direktorat Logam dan Batubara dari Kementerianitu berkata rencana terkait ditangguhkan oleh karena harga yang rendah, dan dengandemikian sekarang bukanlah waktu yang tepat untuk melaksanakan kenaikan. Tidak dike-tahui sampai kapan penangguhan ini berlaku, namun untuk kebaikan industri, seharusnyaia berlaku selama harga tetap rendah dan industri tetap meghadapi kesulitan berusaha.

Pada waktu ini perusahaan-perusahaan besar Indonesia membayar 13.5% royalti sedang -kan kecil dan menengah membayar 3.7%. Rencananya adalah mengenakan 13.5% royaltipada produsen-produsen kecil dan menengah yang memegang izin IUP batubara. Ini tidakberdampak pada pemegang kontrak kerja batubara (CCOW). Jatuhnya harga berarti paraprodusen termasuk yang besar, menghadapi keputusan-keputusan berat yang akan berakhirdengan penutupan tambang-tambang yang tidak menguntungkan. Pengekspor batubaraIndonesia kelima terbesar, Asia Resources Minerals adalah salah satunya. Ia sedang mem-pertimbangkan penutupan Lati, tambang terbesarnya dimana hampir setengah dari produk-si 2013-nya dihasilkan. Tetapi Glencore, Xstrata, Rio Tinto dan BHP Biliton juga telahmenghentikan oprasi batubara atau mengundurkan rencana-rencana ekspansi mereka.

Harga pada akhir Maret jatuh sampai $73 per ton, terendah sejak November 2009, diten-gah-tengah ketiadaan suplai yang diperkirakan oleh UBS AG sama dengan 4% pasaranmelalui laut tahun ini. Dirut ARMS Nick von Schirnding mengatakan ini adalah waktu terbu-ruk untuk bisnis dan industri batubara secara keseluruhan. “Sekarang kami seimbang, tapikalau harga batubara berterusan seperti ini, dan belum pernah mencapai $80 tahun ini, kamiterpaksa mengambil tindakan selanjutnya.”

Indonesia tidak bisa mengalami penutupan pertambangan secara besar-besaran danpemerintah harus membantu industri pada masa-masa sulit sekarang ini.

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Coal Age Indonesia® is published two times per year byMining Media International. Every endeavour is made toensure that the contents are correct at time of publication.The Publisher and Editors do not endorse the opinionsexpressed in the magazine. Editorial advice is non-specificand readers are advised to seek professional advice for spe-cific issues. Images and written material submitted for publi-cation are sent at the owners risk and while every care istaken, Coal Age Indonesia® does not accept liability for lossor damage. Coal Age Indonesia® reserves the right to mod-ify editorial and advertisement content. The contents maynot be reproduced in whole or in part without the written per-mission of the publisher.Copyright 2013 Mining Media International Pty LtdISSN: 1832-7966

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Coal Age IndonesiaFrom The Editor

®

John Miller, editor

Road to success

Cokal production within a year By John Miller, editor Coal Age Indonesia

COKAL Limited is well advanced on the

road to production at Bumi Barito Mineral

Coking Coal Project in Central Kalimantan.

The company expects production to begin in

early 2015 at an initial annual rate of 375,000

tonnes while ramping up after about six

months to the full designated capacity of 2

million tonnes per annum.

The only hurdle to overcome in April

before beginning the nine month construction

phase was securing the production forestry

permit for which Cokal expected final

approval within weeks.

A definitive feasibility study (DFS) has

confirmed that BBM mine, associated facili-

ties and transport systems can be developed

as a low capital cost operation with moderate

to mid-range operating costs. BBM is north-

west of Puruk Cahu, the capital of Murung

Raya Regency.

The study approached the development as

a 2 million tonne open cut mining operation

and identified that BBM’s relatively low ash,

low sulphur, low phosphorus coking coal

would command a high value as blending

feed in the premium coking coal market. The for-

mal risk analysis identified no issues which could

not be managed by reasonable controls that would

prevent effective construction and operations.

The total estimated development capital

required to deliver the production rate, including

developing a coal handling preparation plant,

haulage road and all necessary transport and site

infrastructure is US$75 million, assuming that

mining, barging and hauling equipment will be

provided by the respective contractors.

A recently released, JORC 2012 compliant esti-

mate for the eastern portion of BBM shows a 261

million tonne resource, comprising 10.5 million

measured tonnes, 13.5 million indicated tonnes

and 237 million inferred tonnes. Further infill

drilling is likely to define additional resources and

increase measured and indicated resources.

Cokal’s chairman and CEO Peter Lynch told

Coal Age Indonesia, “I am absolutely pleased with

the DFS and its outcomes. We did a pre-feasibili-

ty study (PFS) in October 2012 and then went into

the detailed definitive study, enabling us to get

within plus or minus 10% of operating and capital

costs. We also refined the capital project schedule

in a bid to make the capital more efficient. The

Produksi Cokal dalam waktu setahunCOKAL Limited telah cukup jauh dalam perjal -

anannya ke tahap produksi di Proyek Batrubara

Min eral Bumi Barito di Kalimantan Tengah.

Peru sahaan mengharapkan produksi bermula

awal 2015 dengan jumlah tahunan permulaan

375.000 ton yang akan ditingkatkan dalam

waktu 6 bulan ke kapasitas penuhnya sebanyak 2

juta ton per tahun.

Satu-satunya rintangan yang harus diseberangi

pada bulan Maret sebelum memulai fase kon-

struksi selama 9 bulan kedepan ialah mendap-

atkan izin produksi kehutanan yang diharapkan

Cokal didapat pada bulan April. Studi penga-

matan definitif (definitive feasibility study –

DFS) telah mengkonfirmasi bahwa tambang

BBM, sarana terkait dan sistim pengangkutan

dapat dibina sebagai operasi modal rendah ke

rata-rata rendah biaya operasi. BBM terletak di

barat laut Puruk Cahu, ibukota Kabupaten

Murung Raya.

Pengamatan menggunakan pendekatan pem-

binaan ini sebagai tambang terbuka 2 juta ton

dan mencatat kadar abu yang rendah, sulfur ren-

dah, phosphor rendah batubara BBM ini akan

menarik nilai yang tinggi sebagai pengisi campu-

ran di pasaran batubara arang. Analisa risiko

resmi tidak memperlihatkan hal-hal yang tidak

dapat dikelola dengan pengendalian yang baik

yang mengganggu konstruksi dan operasi.

Modal pembangunan diperkirakan US$75 juta

diperlukan untuk mencapai jumlah produksi, ter-

masuk membangun sarana persiapan pengelo-

laan batubara, pengangkutan jalan dan semua

infrastruktur, dengan asumsi penambangan, pen-

gangkutan air dan pengangkutan darat disedi-

akan oleh para kontraktor.

Perkiraan batubara yang memenuhi JORC

2012 yang baru saja diterbitkan untuk bagian

timur BBM menunukkkan 261 juta ton cadan-

gan, terdiri dari 10,5 juta telah diukur, 13,5 juta

ton terindikasi an 237 juta ton diharapkan.

Pemboran dalam tambahan kemungkinan akan

mendefinisicadangan tambahan dan menambah

cadangan batubara diukur dan terindikasi.

Ketua Komisaris dan Dirut Cokal Peter Lynch

memberitahukan Coal Age Indonesia, “Saya san-

gat puas dengan DFS dan hasil-hasilnya. Kami

laksanakan studi pra pengamatan (pre-feasibility

study – PFS) di bulan Oktober 2012 dan kami

teruskan dengan studi definitif erperinci, yang

memungkinkan kami memperkirakan biaya

modal dan operasi dengan akurasi ± 10%. Kami

juga memperhalus jadwal proyek bagi menge-

fisiensikan modal.

“DFS memperlihatkan biaya muka yang lebih

rendah, jadi kami telah memutuskan untuk men-

gundurkan pengeluaran biaya modal sedikit

untuk mendapatkan masukkan tunai (cashflow)

lebih cepat dan membiayai pengembangan

dalam 12-18 bulan setelah produksi bermula.

“DFS memperkuat pemikiran kami akan

biaya-biaya operasi dan modal, didukung teruta-

ma oleh brang-barang besar, melalui tawaran

betul dari kontraktor dan penyedia-penyedia

suplai.”

Langkah-langkah akhir

Peter Lynch berkata bahwa segala izin-izin

telah didapat kecuali langkah terakhir, yaitu izin


Cokal’s chief geologist Yoga Suryanegara (left) and other team members examine core fromthe BBM drilling program.

DFS shows an even lower upfront capital cost so

we have decided to delay a little of the capital

spend so we can get into cashflow sooner and then

fund enhancements in the following 12-18 months

after production begins. The DFS reinforced our

view on operating and capital costs, backed up,

particularly with larger items, by actual quotations

from contractors and suppliers.”

Final steps

Peter Lynch says all permitting has been sec -

ured except the final step, the production forestry

permit. “We commenced the application for this in

February 2013 and it is now with the Minister.

There were some minor issues, including chang-

ing coordinates on the survey plan. In Indonesia

there are regency, provincial and national govern-

ment levels, and there can be a lot of ‘too-ing and

fro-ing’ between departments.

“Once we have the permit we have essentially

jumped all major hurdles, having already secured

the production mining licence. After receiving the

final permit we have to peg the outline of the per-

mit using square concrete posts.”

In regards to financing Peter Lynch says Cokal

has been in discussions with a number of parties

for a long time. “After receiving the PFS we start-

ed a ‘closed expressions of interest’ process

involving companies we knew and trusted – steel

mills, trading houses, finance sources – many of

who had approached us directly. We didn’t just

open the gates and ask ‘is anyone interested’ – we

targeted those familiar with the project. Now we

have the DFS these contacts are re-

checking their numbers using the

definitive information to come up with

final funding positions. Attainment of

the production forestry permit is like a

condition precedent they need to see

satisfied before committing.

“We have now chosen to accept a

US$150 million debt funding proposal

from Platinum Partners which pro-

vides an initial US$80 million to

US$100 million to cover the initial

capital cost of the BBM project to a

design capacity of 2 million tonnes.

Further drawdowns are accessible as

project delivery performance is

demonstrated”.

“If construction starts in April, we

can essentially put the first coal down

the river in the first quarter of 2015.

The schedule may be slipping a little

but we are not giving up on it yet. We

have a buffer in the schedule but it

depends when we receive the forestry

permit.

“The production profile for the first

six months sees us budgeting to pro-

duce 375,000 tonnes of product coal,

produksi kehutanan. “Kami memulai permoho-

nan untuk ini di bulan Februari 2013 dan

sekarang ada ditangan Menteri. Ada beberapa isu

kecil, termasuk mengganti koordinat di rencana

survey. Di Indonesia ada tahap-tahap pemerinta-

han kabupaten, propinsi dan pusat dan kemungk-

inan ada ulang-alik antar departemen.

“Begitu kami dapatkan izin ini, berarti kami

tel ah melompati semua rintangan-rintangan

besar, ka r ena telah mendapatkan izin produksi

pertambangan. Setelah menerima izin terkahir

ini, kami harus menandakan batas-batas tercan-

tum dalam izin menggunakan tiang-tiang batu

segi empat beton.”

Mengenai pembiayaan Peter Lynch men-

gatakan bahwa Cokal telah membincangkan

dengan beberapa partai selama ini. “Setelah

menerima PFS kami memulai sebuah proses

‘pernyataan keinginan tertutup’ menyangkut

perusahaan-perusahaan yang kami ketahui dan

percayakan – pabrik baja, perusahaan-perushaan

perdagangan, sumber-sumber keuangan – yang

kebanyakannya telah menghubungi kami lang-

sung. Kami tidak membuka pintu begitu saja dan

menanyakan ‘apakah ada yang tertarik’ – kami

tujukan kepada mereka yang mengetahui proyek

ini. Sekarang kami mempunyai DFS hubungan-

hubungan kami ini sedang memeriksa kembali

angka-angka mereka menggunakan informasi

pasti untuk dapat memperkirakan kedudukan

pembiayaan terakhir. Mendapatkan izin produk-

si kehutanan adalah sama dengan pra-kondisi

yang akan memuaskan mereka sebelum komit.

“Kami sekarang telah memilih untuk meneri-

ma rencana pembiayaan hutang sebesar US$150

jutadari Platinum Partners yang menyediakan

mula-mula US$80 juta s/d US$100 juta untuk

menutupi biaya modal permulaanproyek BBM

untuk mendesain kapasitas 2 juta ton.

Pengeluaran selanjutnya didapat tergantung pada

kenyataan hasil yang diserahkan. “

“Seandainya konstruksi bermula bulan April,

kami akan dapat mengirim batubara pertama kali

diatas sungai dalam kwartal 2015. Jadwal kemu-

ngkinan mengundur sedikit, namun kami belum

lagi menyerah dalam hal ini. Kami mempunyai

sedikit kemudahan walaupun ianya bergantung

pada kapan kami menerima izin kehutanan.

Didalam profil produksi untuk enam bulan perta-

ma kami menganggarkan jumlah produksi

sebanyak 375.000 ton batubara, menggunakan

peningkatan produksi yang lembut. Setelah itu

kami mengharapkan beroperasi pada taraf kapa-

sitas per tahun penuh.”

Setelah BBM

Cokal telah mengundurkan diri dari proyek-

proyek Indonesia yang lain untuk berfokus pada

BBM. Begitu ia dibiayai dan memproduksi, pri-

oritas selanjutnya adalah proyek TBAR didekat-

nya. “Kami sedang memohon izin eksplorasi

kehutanan yang memungkinkan kami menggu-

nakan alat-alat pembor dengan kapasitas tinggi

bagi membuktikan sumber,” kata Peter Lynch.

“Ia adalah prioritas selanjutnya oleh karena

kalau kami temui sumber-sumber yang mem-

punyai mutu dan jumlah yang mencukupi, kami

dapat meningkatkan produksi tahunan BBM atau

menambah umur tambang yang akan mem-

berikan hasil yang lebih banyak untuk pengem-

balian biaya infrastruktur.

“Sebagian besar modal BBM akan ditanam


Road to success

The BBM permit area adjoins the Barito River in Central Kalimantan.

allowing for a soft ramp-up. “After that we expect to be operat-

ing at full annual capacity.”

Beyond BBM

Cokal has backed off at its other Indonesian projects to focus

on BBM. Once it is funded and in production, the next priority

will be the adjoining Tambang Benua Alam Raya (TBAR) proj-

ect. “We are obtaining the exploration forestry permit which will

enable us to use high capacity drill rigs to prove up a resource,”

Peter Lynch says. “It is the next priority because if we find

resources of sufficient quality and quantity, we will be able to

increase annual production at BBM or extend mine life with

potential to give us greater return on the BBM infrastructure

investment. Most BBM capital will be invested in the haul road,

barge loading jetty, the joint venture company we are forming for

a specialized barging system and the intermediate stockpile. The

more coal we can put through that capital, the better off we are.”

Beyond that, he says, it is about focusing on a largely undevel-

oped coking coal basin. “The North Barito Basin has about 10 bil-

lion tonnes ofresources compared to Queensland’s Bowen Basin

with 35 billion. It is highly sought after coal that is complementa-

ry to some of the new coking coals from Australia and

Mozambique. New coal from the developing Rangles formation

of Central Que e n sland has lower vitrinite and higher phosphorus

levels than coal previously mined in the Bowen Basin, while coal

from Mozambique has high ash and a bit of phosphorus. North

Barito Basin coal has very high vitrinite, almost no phosphorus

and low sulphur, making it ideal for blending.

“The basin only has two operating mines – Borneo Lumbung at

an annual capacity of 3.5 million tonnes and MGM at 1.5 million

tonnes but expanding to 2.5 million – and is like the Bowen Basin

was in the late 1960s and early 1970s. We have been doing a lot of

work to determine what the most promising parts of available proj-

ects are and how they complement what we are doing. Our focus

is on the western side of the basin where we have four projects,

including AAK and AAM. Our aim is to build a solid base where

we have potential to grow in the next 10 years to get to 10 million

tonnes of annual production.”

Working together

Peter Lynch says it is a tough environment to bring a project on

to the market with sentiment for coking coal at all-time lows and

volatile prices, while the political cycle in Indonesia is unpre-

dictable owing to a presidential election later this year.

Road to success

dalam jalan pengangkutan berat, jeti bongkar

muat tongkang, perusahaan joint venture yang

sedang kami dirikan untuk sistim pengangkutan

air special dan tumpukan pengantara. Lebih

banyak batubara kami keluarkan dari modal

maka lebih baik lah keadaan kami.”

Diluar itu, katanya, adalah memfokuskan diri

pada daerah batubara arang yang belum diban-

gun. “Daerah Barito Utara mempunyai lebih

kurang 10 milyar ton cadangan ketimbang daer-

ah Bowen di Queensland dengan 35 milyar. Ia

juga batubara yang sangat diingini sebagai kom-

plimenter batubara arang dari Australia dan

Mozambique. Batubara baru dari formasi

Rangles yang sedang dibangun di Queensland

Tengah berciri vitrinit

lebih rendah dan kadar phosphor yang lebih ting-

gi dari batubara dari daerah Bowen, sedangkan

batubara Mozambique mengandung kadar abu

yang tinggi dan phosphor yang rendah. Batubara

daerah Barito Utara mengandung vitrinit yang

tinggi, hampir tidak berphosphor dan sulphur

rendah, membuatnya ideal untuk pencampuran.

“Daerah ini hanya mempunyai dua tambang

yang beroperasi – Borneo Lumbung dengan kap-

asitas tahunan sebesar 3.5 juta ton dan MGM 1.5

juta ton namun diperbesar ke 2.5 juta ton – ham-

pir sama dengan keadaan daerah Bowen pada

akhir 1960han dan awal 1970.

“Kami telah melaksanakan banyak aktivitas

untuk mengetahui bagian-bagian dari proyek-

proyek yang ada dan bagaimana mengkompli-

menter apa yang kami sedang kerjakan. Fokus

kami adalah dibagian barat dimana kami mem-

punyai empat proyek, termasuk AAK dan AAM.

Tujuan kami adalah membina dasar yang kuat

dimana ada potensi untuk tumbuh dalam 10

tahun kedepan dalam rangka mencapai 10 juta

ton produksi tahunan.”

Kerja bersama

Peter Lynch mengatakan ini adalah lingkun-

gan yang sulit untuk membawa peoyrek ke

pasaran dengan minat untuk batubara arang pada

taraf yang paling rendah dan harga-harga tak

menentu, sedangkan dalam siklus politik di

Indonesia juga tak dapat diprediksi oleh karena

pemilihan presiden baru dimasa mendatang

tahun ini.

“Rezim kini telah dikritik karena tidak banyak

berbuat apa-apa tapi telah menangani korupsi

dan telah mengkonsolidasi situasi dengan semua

orang bekerja bersama-sama dan majukedepan,

walupun perlahan-lahan,

“Saya percaya ini telah menjadi persiapan

untuk pertumbuhan yang signifikan setelah

pemilihan presiden. Memang diketahui bahwa

An outcrop of bright coking coal at Cokal’s BBM project, which is character-ized by thick seams.



Road to success

“The current regime has been criticized for not

doing much but they have made inroads into tack-

ling corruption and have consolidated the country

by getting everyone working together and moving

forward, albeit slowly.

“I believe this has set the scene for significant

growth following the presidential election. After

all, Indonesia has the world’s fourth biggest popu-

lation, a 5-6% growth rate, is resource rich, has a

highly educated and young demographic, and

everyone wants to get ahead resulting in a lot of

aspirational activity.

“There is a lot of foreign investment interest but

many are holding off and waiting for the election.

Once this is over, and I think there will be a posi-

tive result, investment will start pouring in.

“Where we sit, if we can get into production

now, we will be at the start of the growth wave.

When Indonesia starts to become the flavour of

the month every man and his dog will be there, so

we have an early mover advantage.

“There’s a positive feel amongst the people and

Indonesia has a bright future. To me it’s a safer

place to do business than Australia, the people

want to learn so they can do better and the labour

cost is incredibly cheap. In provincial areas the

labour rate is about half that of inland

China. Indonesia also has a competitive

cost structure. As the economy picks up

costs will increase but there is still a signif-

icant buffer to the Chinese structure.

“Indonesians are all about pride, they

love getting a chance to have a go and

smaller companies like Cokal offer quality

opportunities for them to play a significant

role in the company’s development. They

like having the autonomy we offer and

want to see Cokal do better. They set out

each day to prove that you have done the

right thing by employing them.”

Indonesian growth

“Many people talk about growth in

China and India but forget about

Indonesia. The worst ones at doing this are

Australians, despite Indonesia being so

close and Australia being well positioned

to capitalize on growth there as the two

societies are complementary,” he says.

“Australia has a lot of wealth, a small

population, expertise and has been through

what Indonesia is experiencing now

around 35 years ago. Indonesia is strug-

gling with things like resource nationalism

and downstream processing which is what

Australia went through in the 1970s.

Indonesia mempunyai penduduk keempat terbe-

sar, peningkatan penduduk sebesar 5-6%, kaya

sumber alam, mempunyai demografi muda dan

berpendidikan tinggi, dan semua ingin maju

kedepan, sehingga menghasilkan banyak aktivi-

tas beraspirasi tinggi. Minat investasi asing

cukup banyak namun kebanyakan menunda

keputusan menunggu pemilihan presiden.

Setelah itu, saya kira akan ada hasil positif,

investasi akan mulai berdatangan.

“Dimana kita berada, kalau dapat berproduksi

sekarang, kami akan menjadi tombak gelombang

pertumbuhan. Nanti Indonesia menjadi favorit

siapapun aka nada disana, jadi kami mempunyai

keuntungan sebagai orang yang paling awal dis-

ana. Ada perasaan positif diantara penduduk dan

Indonesia mempunyai masa depan yang cerah.

Untuk saya lebih aman menlaksanakan bisnis

disini daripada di Australia, orang-orangnya

ingin belajar jadi mereka bisa mlaksanakan yang

lebih baik sedangkan biaya buruh sangat murah.

“Di daerah propinsi biaya buruh lebih kurang

setengah dari di dataran Cina. Indonesia juga

mempunyai struktur harga yang kompetitif.

Kalau ekonomi membaik tentunya biaya akan

naik juga namun masih banyak perbedaan den-

gan struktur Cina.

“Orang Indonesia adalah bangsa yang bangga,

mereka meningini kesempatan untuk mencoba

dan perusahaan-perusahaan kecil seperti Cokal

dapat memberikannya sehingga mereka dapat

memainkan peranan yang signifikan untuk per-

tumbuhan perusahaan.

“Mereka suka akan otonomi yang kami

berikan dan ingin melihat Cokal menghasilkan

yang lebih baik. Mereka berusaha tiap hari untuk

membuktikan bahwa kami telah bertindak benar

dengan mempekerjakan mereka.”

Pertumbuhan Indonesia

“Banyak orang bicara mengenai pertumbuhan

di Cina dan India tapi lupa akan Indonesia. Yang

paling buruk adalah orang-orang Australia,

walaupun Indonesia begitu dekat dan Australia

berada disisi terbaik untuk mengambil keuntun-

gan dari pertumbuhan disana karena kedua

masyarakatnya berkomplimenter,” katanya.

“Australia mempunyai banyak kekayaan,

penduduk yang kecil, keahlian dan telah melalui

apa yang tengah dialami Indonesia lebih kurang

35 tahun yang lalu. Indonesia menghadapi tanta-

ngan mengenai nasionalisme sumber alam dan

pemerosesan lanjut yang dilalui Australia

ditahun-tahun 1970han.

“Kedua negara seharusnya membagi-bagi

pengalaman dan para produksi Australia mem-

pertimbangkan pindah ke Indonesia dimana

mereka mempunyai kelangsungan hidup yang

lebih baik. Dengan demikian Australia mempun-

yai industry suku cadang yang kuat untuk indus-

tri produksi Indonesia.

Pemberdayaan diri

“Kalimantan Tengah tidak mempunyai sejarah

pertambangan, lain dari Kalimantan Timur, dan

Cokal memutuskan awal awal lagi berkecim-

pung dalam Tanggung Jawab Sosial Korporat

(Corporate Social Responsibility – CSR).” Kata

Peter Lynch, “karena segalanya relatif murah dan

tidak makan ongkos banyak untuk perusahaan-

perusahaan pertambangan, tapi mempunyai

dampak yang besar tergantung bagaimana ia

dilaksanakannya.

“Cokal telah membantu membangun sebuah

sekolah SMP. Penduduk lebih kurang 12,000

Cokal chairman Peter Lynch in front of an outcrop of coking coal at the BBM project. Cokalexpects production at BBM to start in early 2015.

“The two countries should be sharing that experience

and Australia’s manufacturers should consider moving to

Indonesia where they have a better chance of surviving.

Australia could then have a strong parts industry supplying

Indonesia’s manufacturing.

Self-empowerment

“In Central Kalimantan there is not a strong mining his-

tory, unlike East Kalimantan, and Cokal decided to get

involved in significant CSR early on,” Peter Lynch says.

“Because everything is relatively inexpensive it doesn’t

cost much for mining companies but it can have a huge

impact depending on how it is done.

“Cokal has helped set up a junior high school. There is a

population of about 12,000 within 60km of our site and

previously the kids would get to sixth grade but then leave

school as it was too far to junior high school – about three

hours down the river and the same up the river at the end

of the day. We sat down with the communities, asking them

what would make a difference and the first answer was

always education.

“Rather than just becoming the funding beneficiary, we

said if you provide the labour, we’ll pay for materials. The

entire community got involved and built a junior high

school in a matter of months while we paid for the wood,

concrete, paint and other materials. They are proud of it

because it’s theirs and we helped them achieve it. There was

also a need for teachers and we didn’t want to become an

employer of teachers, so we negotiated a bursary system

with the provincial gov ernment. We essentially provide a

bursary so the government can employ four additional

teachers who are

part of the provincial education system. We have commit-

ted to this for four years and hope by then we’ll have the

budget mechanism to ensure it is ongoing. We are trying to

help, not just by adopting a hand-out mentality but by self-

empowering them.

“We also helped locals set up a cooperative which sup-

plies the food, meals, fuel and other supplies we need. It

also helps with small building projects and provision of

temporary camps around the site. They are essentially act-

ing like a contractor – it’s their own business, they are pay-

ing tax to the government and employ local people.

Road to success


sekitar 60 km dari tempat kami dan sebelum itu

anak-anak tersebut dapat mencapai akhir SD dan

keluar sekolah karena ke SMP sangat jauh –

lebih kurang 3 jam perjalanan arah ke muara dan

di akhir hari hal yang sama arah ke hulu. Kami

berbincang dengan masyarakat, menanyakan

mereka apa kira-kiranya dapat membuat perbe-

daan dan jawaban pertama dan utama selalu

adalah pendidikan.

“Untuk jangan hanya menjadi penyedia uang,

kami katakan kalau anda dapat memnyediakan

tenaga kerja, kami akan membiayai materi.

Seluruh masyarakat turun tangan dan memban-

gun sebuah sekolah SMP dalam waktu hanya

beberapa bulan dengan kami membayar untuk

kayu, beton, cat dan materi-materi lainnya.

Mereka juga bangga bahwa itu milik mereka dan

kami hanya membantu mencapainya.

“Tentunya juga sekolah memerlukan guru-

guru dan kami tidak ingin menjadi majikan para

guru, jadi kami menegosiasikan sebuah sistim

pembiayaan dengan pemerintah propinsi. Kami

sediakan biaya untuk pemerintah mempeker-

jakan empat guru tambahan yang menjadi bagian

dari sistim pendidikan propinsi.

“Kami telah komit akan ini untuk empat tahun

dan mengharapkan setelah itu mempunyai

mekanisme anggaran belanja untuk memastikan

bahwa hal ini akan berkesinambungan. Kami

mencoba membantu bukan dengan mentalitas

member melainkan memberdayakan mereka.

“Kami juga membantu masyarakat setempat

mendirikan koperasi yang menyediakan bahan

makanan, makanan, bahan bakar dan barang-

barang lain yang diperlukan.

“Ianya juga membantu dalam proyek-proyek

pembangunan dan persediaan kemah-kemah

sementara di sekeliling tambang.

“Mereka beraksi sebagai kontraktor – ini

adalah usaha mereka sendiri, mereka membayar

pajak ke pemerintah dan mempekerjakan orang-

orang setempat.

“Ini sama dengan model pemberdayaan yang

dijalankan oleh Medusa Mining di Filipina. Ini

bukan saja mengenai pendidikan pertambangan,

tapi juga Pertanian yang membantu

meningkatkan produktivitas dari tanam-tanaman.

“Dengan demikian mereka tidak saja tergan-

tung pada proyek pertambangan – ia bertambah

kepada peningkatakan ekonomi yang belraku

masa ini.”

Faedah-faedah Indonesia

Ketimbang waktu merealisasikan proyek per-

tambangan Australia, jalan ke produksi untuk

Cokal relatif pendek. Peter Lyunch mengatakan

bahwa dalam masa 10 tahun kebelakang

Australia telah mundur dalam hal ini. “Dulu

dapat membawa proyek ke produksi dalam

waktu dua atau tiga tahun, tapi sekarang lima

The proposed transport system along Barito River for BBM coal.


Road to success

“It is a similar self-empowerment model to that

established by Medusa Mining in the Philippines.

It is not just about mining education, but also agri-

culture which helps get better productivity from

crops. In this way they don’t just rely on the min-

ing project - it extends into betterment of the

ongoing existing economy.”

Indonesian advantages

Compared to Australia’s timeline for bringing

mining projects on line, it has been a relatively

short road towards production for Cokal. Peter

Lynch says in the last 10 years Australia has gone

backwards in this regard.

“It was possible to get projects into production

in two or three years but now it is a five to 10 year

slog. In Indonesia the system is bureaucratic

because of the levels of government in various

stages of autonomy but overall there is a strong

desire to move forward and make things happen.

Despite the bureaucracy, the underlying drive has

ensured that the approvals system is of an interna-

tional standard, including AMDAL for environ-

mental approvals.

“At least you know what you are dealing with

whereas in Australia there is supposedly a system

but it is subjective and politically tarnished.

“Whenever a new project comes up, as soon as

a group becomes vocal with their concerns, the

company, which has often done a detailed techni-

cal review identifying all issues, is often forced to

go into a time-consuming and costly supplemen-

tary process because local politicians don’t want

to face up to some perception of negative senti-

ment.

“It hasn’t always been easy in Indonesia owing

to the bureaucracy with one level of government

thinking the process works differently to what

another government level believes.

“Despite this, there’s ultimately a way through.

Cokal has been aided by establishing a successful

Indonesian team. We use some consultants but

have a very strong team which fully understands

the process. We even have government using us

as an example to others.

“Our BBM process for the AMDAL and min-

ing approvals is used as a model for the province

to progress further projects.”

sampai sepuluh tahun jalan yang lamban.

“Di Indonesia sistimnya memang birokratis

karena banyaknya tahap pemerintahan dan

dalam tahap-tahap otonomi ber beda, tapi secara

keseluruhan ada keinginan untuk maju kedepan

dan melaksanakan hasil.

“Walaupun birokratis, keinginan ini telah

menghasilkan sistim pengizinan yang bertraf

internasional termasuk AMDAL untuk izin

lingkungan.

“Sedikitnya kita tahu apa yang kita hadapi

sedangkan di Australia katanya ada sistim tapi

ianya subjektif dan diwarnai oleh politik. Setiap

ada proyek baru, kalau terbuka mengenai isu-isun-

ya, sering dipaksa untuk menjalani proses-proses

sekunder oleh karena para orang politik setempat

tidak mau menghadapi persepsi of sentiment yang

negative.

“Tidak selalunya mudah di Indonesia oleh kare-

na birokrasi pada satu tingkat pemerintahan

berpikir prosesnya berjalan berlainan dari tingkat

pemerintahan yang lain kehendaki. Walaupun

demikian akan selalu ada penyelesaiannya. Cokal

telah dibantu dengan mendirikan sebuah tim

Indonesia yang sukses.

“Kami menggunakan beberapa konsultan tapi

mempunyai tim yang kuat yang mengerti proses

seluruhnya.

“Malah ada pemerintahan yang menggunakan

kami sebagain contoh kepada orang lain. Proses

BBM kami untuk AMDAL dan izin-izin pertam-

bangan digunakan sebagai contoh untuk propinsi

memajukan progress proyek-proyek.”

LEFT: A sampleof coking coalfrom Cokal’sBBM project inCentralKalimantan.

Barging is the preferred method of transport for coal from the BBM project with the Barito River to be used.

Risk reward investment

Peter Lynch says as an investment destination

Indonesia is perceived as being high risk but it is

risk that is rewarded: the geological potential of

Indonesia is largely untapped which means jun-

iors operating in Australia have to contend with

more marginal projects; in terms of approvals it is

quicker in Indonesia; labour rates are at least a

tenth of the cost of Australia; and there is half the

shipping distance to the main markets of China,

Korea, Japan and India.

“The significant differences between most

Indonesian and Australian coal projects are that

infrastructure costs are a lot less and transport

approvals much simpler, particularly for projects

serviced by a river.

“We don’t need to form a complicated consor-

tium to negotiate further capacity on rail lines or

ports, which are often controlled by a major. The

cost to get the coal to an ocean-going vessel is

much less, at about $2.54 per tonne for Cokal,

and we don’t have to put capital into that process

apart from the barging fleet.

“All we have to do is sign a contract with the

floating crane operators to load from barges to

vessels. This compares to costs of up to $13 per

tonne to get Australian coal to vessels. As well as

being much cheaper, easier and quicker, you

don’t have the inter-relationship hassles often

seen in rail and port deals.

“We have good faith in Indonesia despite many

people saying bad things.

“We don’t listen to the chit-chat; we’re having

a go and believe we’ll be rewarded because we

have a good company set-up, giving us respect

from the country, which will ultimately lead to

positive project outcomes.”

q www.cokal.com.au

Cokal Indonesia president director Garry Kielenstyn awards university scholarships in Murung Raya Regency as part of the company’s CSR pro-gram in Indonesia.

Investasi risiko berimbalan baik

Katanya sebagai destinasi investasi Indonesia

dilihat sebagai ber-risiko tinggi tapi ini risiko

yang mempunyai imbalan: potensi geologis

Indonesia kebanyakan belum digali yang berarti

orang-orang junior di Australia terpaksa meneri-

ma mengerjakan proyek-proyek yang pinggiran;

dalam hal pengizinan ini lebih cepat di Indonesia;

biaya buruh hanya sepersepuluh biaya di

Australia; dan setengah jarak ke pasaran-pasaran

utama Cina, Korean, Jepang dan India.

“Perbedaan yang menyolok antara kebanyakan

dari proyek-proyek batubara Indonesia dan

Australia ialah biaya infrastruktur jauh kurangnya

dan izin pengangkutan jauh lebih mudah, apalagi

proyek-proyek yang menggunakan sungai. Kami

tidak perlu mendirikan consortium yang berbelit-

belit untuk menambahkan kapasitas melalui kere-

tapi atau pelabuhan, yang sering dikendalikan

oleh sebuah monopoli. Biaya pengangkutan ke

kapal laut jauh lebih murah, lebih kurang $2.54

per ton untuk Cokal, dan kami tidak perlu mema-

sukkan modal kedalam proses tersebut kecuali

armada tongkang. Ini bisa dibandingkan dengan

biaya yang hampir $13 per ton untuk memuat

batubara Australia ke kapal laut. Disamping jauh

lebih murah, mudah dan cepat, kita juga tidak

harus menghadapi masalah-masalah antar-hubun-

gan yang sering kita lihat antara keretapi dan

pelabuhan.

“Kami mempunyai kepercayaan baik akan

Indonesia walaupun banyak yang mengatakan

hal-hal buruk. Kami tidak mau mendengar gosiop;

kami mencoba dan percaya akan mendapat imbal-

an karena kami mempunyai pendirian perusahaan

yang baik, mendapatkan rasa hormat dari negara,

yang akhirnya akan menjuju ke hasil-hasil yang

positif.

Road to success


COAL production in Indonesia this year is set to

grow beyond the 421 million tonnes produced

last year, despite the Government downsizing its

production target. The Indonesian Coal Mining

Association expects 2014 production to reach as

much as 450 million tonnes.

The Indonesian Ministry of Energy and

Mineral Resources in January said that it had

changed its coal production outlook in an attempt

to conserve the resource primarily for future

domestic needs and also on the expectation that

a lower output may result in higher prices for its

coal exports. It has asked companies to cap 2014

production at 397 million tonnes and has allocat-

ed 73 million tonnes for the domestic market.

PT Apple Coal’s chief development officer

Ben Lawson says Indonesia’s coal production

will definitely grow in 2014. “As a miner who

has been through the boom years from 2008 to

2011, if you invest in infrastructure and you’ve

got a plan to go with that infrastructure and your

bank wants you to stick with that plan to pay

back that infrastructure for your shareholders, or

whatever the case may be, you have to increase

production. You have to pay the loans back, and

you have a mining plan to go with those loans, so

it’s kind of a forced situation, coal miners have to

increase production.”

Indonesian Coal Mining Association deputy

chairman Herman Kasih told The Jakarta Post in

December: “Coal miners are targeting higher

production. There’s growing demand in the glob-

al market, including from Japan which is increas-

ing coal purchases as it shuts down nuclear gen-

erated power.”

PT Bumi Resources, Indonesia’s largest coal

producer and majority shareholder of PT Kaltim

Prima Coal and PT Arutmin Indonesia, expects

production to grow about 15% from last year’s 74

million tonnes to an estimated output of 97.8 mil-

lion tonnes. Adaro Energy, Indonesia’s second

largest producer, expects production to grow

about 7%, with an estimated output of 56 million

tonnes. PT Berau Coal expects production to grow

almost 12% from last year, with an estimated out-

put of 25.7 million tonnes and PT Bukit Asam

expects production to grow approximately 22%.

At a Coal Club Indonesia networking event

Ben Lawson indicated that India and China – cur-

rently Indonesia’s largest coal export destinations

– will annually need a combined 350-plus million

tonnes. He said other rapidly expanding

economies of Thailand, Malaysia, Vietnam,

Taiwan and South Korea would require a com-

bined 100 million tonnes over the next five years.

“Japan, traditionally one of Indonesia’s largest

coal markets, has closed all but two of its 54

nuclear power plants and will see a large increase

in coal requirements to cover the shortfall,” he

said. “This could potentially equate to an

increase of around 60 million tonnes.”

On the domestic front, Ben Lawson says

Indonesia has seen an exponential increase in

coal demand hand-in-hand with a massive

increase in new coal-fired power production

from State-owned electricity utility PLN.

“A major increase will continue to be seen as

PLN along with State-owned petrochemical and

plantation companies, and the majority of

Indonesia’s private sector conglomerates, require

large increases in coal supplies to feed coal-fired

power plants built, or planned, to replace costly

diesel-fired plants.”

Fitch Ratings says that the credit profiles of

mining sub-contractors and miners highly reliant

on increasing volumes to support high debt serv-

icing will be most affected if the government

strictly implements limits. It says companies

have been seeking to increase production to part-

ly compensate for substantially reduced dollar

margins per tonne following a steep decline in

international seaborne thermal coal prices, espe-

cially companies burdened with high debt levels

and weak liquidity.


Indonesia

Miners want more, government says less

Warga tambang mau lebih, pemerintah bilang kurangiPRODUKSI batubara tahun ini diperkirakan

melebihi 421 juta ton yang dicapai tahun lalu,

walaupun pemerintah mengurangi target pro-

duksinya. Persatuan Pertambangan Batubara

Indonesia mengharapkan produksi mencapai

450 juta ton pada tahun 2014.

Kementerian Sumber Tenaga dan Tambang

mengatakan bulan Januari bahwa ia telah meng-

ganti wawasan produksi batubaranya untuk

menghemat sumber ini terutama untuk keperluan

domestik yang akan datang dan juga harapan

penurunan jumlah produksi akan meningkatkan

harga batubaranya untuk ekspor. Ia telah mengin-

struksikan perusahaan-perusahaan untuk membat-

asi produksi 2014 mereka pada 397 juta ton dan

menentukan 73 juta ton untuk pasaran domestik.

Ketua pengembangan PT Apple Coal, Ben

Lawson mengatakan bahwa ia pasti produksi

batubara Indonesia di tahun 2014 meningkat.

Sebagai sorang pertambangan yang pernah

mengalami tahun-tahun eksplosif dari 2008

sampai 2011, kalau kita menanam modal pada

infrastruktur dan kita punya rencana dengannya

dan bank mengingini kita meneruskan rencana

tersebut bagi membayar kembali biaya infra-

struktur kepada pemegang saham, apapun yang

terjadi, kita terpaksa meningkatkan produksi.

Kita harus membayar hutang, dan kita punya

rencana pertambangan menyangkut hutang

tersebut, mau tidak mau tambang batubara ter-

paksa meningkatkan produksi.”

Wakil Ketua Persatuan Tambang Batubara

Indonesia Herman Kasih berkata pada The Jakarta

Post Desember: “.Tambang-tambang batubara

bertujuan meningkatkan produksi. Pasaran dunia

mengingini lebih banyak, termasuk Jepang yang

meningkatkan pembeliannya dengan mereka

meniadakan listrik tenaga nuklirnya.”

Produsen batubara Indonesia terbesar yaitu

PT Bumi Resources pemegang saham mayori-

tas di PT Kaltim Prima Coal dan PT Arutmin

Indonesia mengharapkan produksi meningkat

15% ketimbang 74 juta ton tahun lalu ke 97,8

juta ton. Produsen terbesar kedua yaitu Adaro

Energy, mengharapkan produksi meningkat

dengan 7% menghasilkan 56 juta ton. PT Berau

Coal mengharapkan kenaikan produksi dengan

12% berbanding tahun lalu ke 25,7 juta ton dan

PT Bukit Asam mengharapkan kenaikan pro-

duksi dengan 22%.

Pada sebuah acara di Klub Batubara Indonesia

Ben Lawson mengindikasikan bahwa tujuan-

tujuan terbesar batubara Indonesia pada masa ini,

yaitu India dan Cina bersama, akan memerlukan

lebih dari 350 juta ton per tahun. Negara-negara

yang ekonominya berkembang pesat yaitu

Thailand, Malaysia, Vietnam, Taiwan dan Korea

Selatan bersama akan memerlukan 100 juta dalam

lima tahun mendatang.

“Salah satu pasaran terbesar batubara

Indonesia yaitu Jepang telah menutup semua

kecuali dua dari 54 pabrik listrik bertenaga nuk-

lirnya dan akan memerlukan peningkatan jum-

lah batubara yang besar bagi menutupi kekuran-

gan.” katanya. “Ini berpotensi peningkatan

lebih kurang 60 juta ton.”

Ben Lawson mengatakan, peningkatan

keperluan batubara domestik telah mengalami

peningkatan yang eksponensial bersamaan den-

gan kenaikan produksi listrik bertenaga

batubara-nya PLN. Kenaikan yang cukup besar

akan terus kita lihat karena PLN bersama

BUMN-BUMN petrokimia dan perkebunan

serta mayoritas dari sektor conglomerat memer-

lukan tambahan persediaan batubara yang besar

bagi memenuhi kebutuhan pembangkit-pem-

bangkit tenaga listrik yang sudah ada dan yang

sedang dibangun untuk menggantikan pem-

bangkit tenaga listrik solar yang mahal.

Fitch Ratings mengatakan bahwa profil kred-

it subkontraktor-subkontraktor pertambangan

bergantung besar pada peningkatakan jumlah

(produksi) yang diperlukan untuk membayar

kembali hutang-hutang, akan terdampak

seandainya pemerintah melaksanakan pembat-

asan secara ketat.

Ia mengatakan bahwa banyak perusahaan

mencoba meningkatkan produksi sebagai kom-

pensasi turunnya pendapatan dari dolar per ton

disebabkan jatuhnya harga internasional

batubara, terutama perusahaan yang menyan-

dang taraf hutang yang tinggi dan likuiditas ren-

dah.


ADARO Energy has allocated $200 million to

$250 million for capital spending this year with

the aim of boosting production by about 7%. The

capex budget for Indonesia’s second-largest coal

mining company is around double the amount

spent in 2013.

The company’s coal production in 2013 hit a

record high of 52.27 million tonnes, up 11% from

a year earlier. Adaro’s sales by volume increased

10% to 53.47 million tonnes.

“Our focus in 2014 is to maintain reliability of

supply to our customers, continue to improve

operational efficiencies and preserve our solid

balance sheet,” Adaro’s corporate secretary and

head of investor relations Cameron Tough said in

a statement.

Jakarta-based Adaro was established in 2004 as

a unit of the Saratoga Group, an investment firm

controlled by Indonesian billionaires Edwin

Soeryadijaya and Sandiaga Uno. The company

said last November that it reduced its capital

expenditure to $120 million last year from the

original target of $423 million.

Cameron Tough said that the company is tar-

geting its EBITDA (earnings before interest, tax,

depreciation and amortization) to hit between

$750 million and $1 billion this year. It had $626

million in EBITDA in the January-September

period of last year.

Jakarta-based brokerage Trimegah Securities

said in a note to clients that Adaro has about 1.1

billion tonnes of coal reserves with 12.3 billion

tonnes of resources. It said that news of the com-

pany lifting production suggested it would post

positive results and boost its stock price. Adaro

also plans to invest in power plants as electricity

demands in Indonesia rises.

Meantime, as Adaro maintains its strategy of

vertical integration in South Sumatra, it has sold

its 35% stake in coal logistics company PT Servo

Meda Sejahtera.

The sale realized a total of US$25.13 million

with PT Perusahaan Palembang Investama

acquiring 216,300 shares with a value of

US$15.08 million and PT Energi Karya Persada

acquiring 144,200 shares with a value of $10.05

million.

Adaro’s CEO Garibaldi Thohir said: “Our

strategy of vertical integration remains, as we will

now focus on pit to power integration in South

Sumatra.” Adaro still retains the rights to use the

haulage road owned by Servo Meda, which was

acquired in October 2011 for 200 billion rupiah

(US$17.14 million).

Last November, Adaro Energy posted third-

quarter revenue of $2.43 billion, down 12% from

a year earlier. Trimegah Securities says rising

production should help the company post an

increase in earnings this year.

A decline in global coal prices has affected

many of the country’s coal miners including

Adaro. Extreme weather conditions have also

taken their toll on mining operations across the

country.

Indonesia

Adaro aims to lift production 7%

ADARO Energy menyediakan antara $200 juta

dan $250 juta sebagai modal peningkatakan pro-

duksinya7%. Anggaran belanja pengeluaran

modal perusahaan tambang batubara Indonesia

kedua terbesar ini sekarang dua kali lipat pen-

geluaran tahun 2013-nya.

Produksi batubara perusahaan ini pada tahun

2013 mencapai jumlah tertinggi 52,27 juta ton,

naik 11% dari tahun sebelumnya. Jumlah pen-

jualan naik 10% ke 53,47 juta ton. “Tumpuan

kami di tahun 2014 adalah memastikan suplai

kepada pelanggan kami, meningkatkan efisiensi

operasi dan memelihara balance sheet yang

baik.” kata Cameron Tough Sekretaris

Perusahaan dan Kepala Hubungan Investor

dalam suatu pernyataan.

Adaro yang berkedudukan di Jakarta didirikan

pada tahun 2004 sebagai sebuah unit dari Grup

Saratoga, sebuah perusahaan investasi yang dik-

endalikan oleh milyarder Edwin Soeradijaya dan

Sandiaga Uno. November lalu perusahaan ini

telah mengurangkan pengeluaran asetnya ke

$120 juta tahun lalu dari rencana semulanya

berjumlah $423 juta.

Cameron Tough mengatakan bahwa perusa-

haannya sedang merencanakan EBITDA (penda-

patan sebelum interest, pajak, depresiasi dan

amortizasi) untuk mencapai antara $750 juta dan

$1 milyar tahun ini. EBITDA-nya untuk periode

Januari s/d September tahun lalu ialah $626 juta.

Trimegah Securities sebuah perusahaan broker

berkedudukan di Jakarta mengatakan kepada

pelanggannya bahwa Adaro mempunyai lebih

kurang 1,1 milyar ton inventaris batubara dengan

12,3 milyar ton cadangan. Dikatakan pula kabar

bahwa perusahaan meningkatkan produksi

adalah pertanda ia akan mengumumkan hasil

yang positif. Ini juga akan meningkatkan harga

sahamnya. Adaro juga berencana menanamkan

modal di sector fabrik listrik bersamaan dengan

meningkatnya keperluan listrik di Indonesia.

Sesuai dengan strategi integrasi vertikalnya di

Sumatera Selatan, Adaro menjual sahamnya

yang 35% di perusahaan logistis batubara PT

Servo Meda Sejahtera. Hasil penjualan yang

US$25,13 juta itu direalisasikan dengan PT

Perusahaan Palembang Investama membeli

216.300 saham berjumlah US$15,08 juta dan PT

Energi Karya Persada membeli 144.200 saham

seharga $10.08 juta.

Dirut Adaro Garibaldi Thohir berkata:

“Strategi integrasi vertikal kami teruskan dengan

sekarang menumpukan perhatian kepada pengin-

tegrasian tambang dan listrik di Sumatera

Selatan.” Adaro tetap berhak menggunakan jalan

pengangkutan milik Servo Media yang dibeli

Oktober 2011 seharga Rp 200 milyar (US$17.14

juta).

November yang lalu Adaro Energy mela-

porkan penghasilan kwartal ketiga sejumlah

$2,43 milyar, 12% kurang dari setahun yang lalu.

Trimegah Securities mengatakan bahwa pen-

ingkatan produksi seharusnya membantu

meningkatkan penghasilan tahun ini.

Turunnya harga batubara dunia telah

berdampak negatif pada perusahaan-perusahaan

pertambangan batubara di Indonesia. Udara

buruk telah pula mengganggu operasi pertam-

bangan diseluruh negara.

Adaro tingkatkan produksi 7%

Transferring Adaro coal from a barge to an ocean-going vessel.Memindahkan batubara Adaro dari tongkang ke sebuah kapal lautan.

Indonesia


Banpu implements cost reduction programsCOST reduction programs combined with the solid performance of its power

business is helping cushion Banpu from the impact of unfavourable coal

prices. The unfavourable market directly affected Banpu’s revenue from its

coal business in 2013, even though its coal-sales volume increased by 1.22

million tonnes to 42.8 million.

Banpu’s chief executive Chanin Vongkusolkit said the company’s 2013 net

profit of US$103 million was lower than the previous year but Banpu was not

alone in this regard. He said in 2013 the coal industry across the world was

overwhelmed by excess supply, leading to a downturn in prices.

The average selling price (ASP) of Indonesian coal, which was most affect-

ed by this downturn, dropping 17% from the price in 2012. This resulted in a

decrease of Banpu’s ASP to $72.41 per tonne, or 15% lower than the previous

year. Banpu recorded total sales revenue of $3.35 billion last year, 11% lower

than 2012. Banpu’s power business had a net profit of $65.67 million, an

increase of $23.22 million, or 55%, on the previous year.

Chanin Vongkusolkit said Banpu had implemented several measures in

2013 to lessen the impact from unfavourable external factors. They included

boosting operational efficiency and reducing costs, adjusting its mine plan,

improving coal handling and port management to minimize energy cost,

streamlining coal flows from mines to ports, and better coordination of ship

scheduling to reduce port demurrage.

These measures are continuing this and have been expanded in a bid to fur-

ther reduce costs. An in-pit crushing and conveying (IPCC) trial commenced

in December 2013 at the company’s Indominco East Block. This will facili-

tate access to deeper coal reserves and Banpu says it will be more environmen-

tally friendly with less dust, less noise and lower emissions. This plan will

reduce overburden removal at the site and there will be power savings as a

result of the use of power from the Indominco coal-fired power plant.

Banpu is also examining the substitution of diesel with LNG or other alter-

native fuels. A study has been completed for trucks while this scheme is cur-

rently being trialled for coal transport from Indominco to Bontang port. A con-

tractor partnership is under negotiation while Banpu is also considering the

possible implementation of this substitution scheme at Trubaindo-Bharinto.

The company is also looking at medium term electrification projects which

also have capacity to result in savings. Electric overland conveyors are being

considered to reduce coal transport cost at Indominco and the adjacent opera-

tions, as well as at Trubaindo-Bharinto. Banpu believes this would enhance the

efficiency of coal transport while reducing operating costs. It says it is proven

technology that is widely used in Europe, USA and Australia.

PROGRAM-program penghematan biaya bersama performance yang baik

dari bisnis listriknya telah membantu mengurangi dampak dari harga

batubara yang tidak membantu.

Pasaran yang negatif di tahun 2013 telah mempengaruhi penghasilan dari bis-

nis batubara-nya, walaupun jumlah penjualan batubaranya meningkat dengan

1,22 juta ton ke 42,8 juta.

Dirut Banpu Chanin Vongkusolkit mengatakan bahwa keuntungan perusa-

haan sejumlah US$103 juta pada tahun 2013 ternyata kurang dari tahun

sebelumnya, namun Banpu bukan sendiri mengalami hal ini. Katanya pula

ditahun 2013 harga batubara menurun karena persediaan yang berlebihan.

Harga rata-rata penjualan batubara Indonesia (ASP) yang sangat ter-

dampak oleh hal ini mengalami penurunan dengan 17% dari harga di tahun

2012. Karenanya ASP Banpu turun dengan 15% ketimbang harga tahun

sebelumnya. Banpu juga mengalami penurunan hasil penjualan sebanyak

$3.35 Milyar yaitu 11% dibawah 2012.

Namun bisnis listrik Banpu meraih keuntungan bersih berjumlah $65.67

juta, meningkat $23.22 juta atau 55% disbanding dengan tahun sebelumnya.

Chanin Vongkusolkit mengatakan bahwa Banpu telah mengambil

langkah-langkah untuk mengurangkan dampak dari faktor-faktor negatif

eksternal. Ini termasuk meningkatkan efisiensi operasi dan mengurangkan

biaya-biayanya, melaraskan pengaliran batubara dari tambang ke pelabuhan

dan koordinasi jadwal kapal yang lebih baik bagi meningkatkan penggunaan

pelabuhan.

Langkah-langkah ini akan membantu rencana tersebut dan telah di perlu-

as untuk lebih menurunkan biaya. Percobaan ‘crushing’ dan ‘conveying’ di

lumbung tambang (IPCC) bermula di bulan Desember 2013 di blok timur

Indominco nya perusahaan. Ini akan memungkinkan masuk ke cadangan

batubara yang lebih dalam, juga kata Banpu akan lebih sensitif-lingkungan

dengan berkurangnya abu, berkurangnya kebisingan dan berkurangnya

emisi. Rencana ini akan mengurangkan overburden dan sekalian penghe-

matan listrik karena tenaga listrik dari pabrik listrik menggunakan batu-

baranya Indominco.

Banpu juga sedang menyiasati pengganti bahan bakar solar dengan LNG

atau bahan bakar lain. Penyiasatan penggunaan untuk truk telah selesai dan

sekarang sedang dicoba untuk pengangkutan batubara dari Indominco ke

pelabuhan Bontang. Kemitraan kontraktor sedang dibicarakan dan Banpu

juga sedang memperkirakan kemungkinan melaksanakan cara penggantian

ini di Trubaindo-Bharinto.

Perusahaan juga sedang melihat pada proyek-proyek elektrifikasi dalam

masa dekat yang juga dapat menghasilkan penghematan. Konveyor daratan

menggunakan tenaga listrik sedang diteliti untuk mengurangkan biaya pen-

gangkutan batubara di Indominco dan operasi-operasi sekitarnya serta di

Trubaindo-Bharinto. Banpu percaya hal ini akan meningkatkan efisiensi pen-

gangkutan batubara sementara menurunkan biaya-biaya operasi. Ini adalah

Teknologi yang sudah terbukti dan digunakan secara luas di Eropah, Amerika

Serikat dan Australia.

Banpu melaksanakan program-program penghematan biaya

Banpu’s coal and power operations in Kalimantan.Operasi batubara dan listrik Banpu di Kalimantan.


STATE-OWNED PT Bukit Asam is upgrading

the capacity of Tarahan Port in South Sumatra

through construction of new jetty that can accom-

modate a cape size vessel.

The expansion project, which is expected to be

completed in the second half of 2014, will

increase the company’s annual capacity from 13

million tonnes to 25 million tonnes.

The Tarahan Coal Terminal is at Bandar

Lampung, which is about 410km by rail from

Tanjung Enim coal mine, which is fully owned

and operated by Bukit Asam.

Once the port is ready for commercial opera-

tion, it will operate a newly developed jetty able

to accept cape size vessels of up to 200,000 DWT,

in addition to the existing jetty with a capacity of

berthing Panamax vessels of up to 80,000 DWT.

The port expansion will be supported by an

increased capacity of the coal stockpile to

860,000 tonnes from 560,000 tonnes.

The stockpile also will be equipped with two

new additional RCD (Rotary Car Dumpers) by

July to support the company’s mining and logis-

tics operations.

Bukit Asam is aiming for a 25% increase in

coal exports during 2014, taking advantage of ris-

ing demand in the international coal market, espe-

cially from Japan and emerging coal markets in

the region.

Bukit Asam president director Milawarma says

the company expects demand from Japan to

increase in line with the country’s plan to devel-

op coal-fired power plants following the

Fukushima nuclear plant disaster in 2011 and in

response to the high cost of oil.

He says that this is expected to boost coal

exports from Indonesia as well as from Bukit

Asam.

Milawarma also says the opportunity is quite

promising, considering that demand from Taiwan

and Vietnam is still high despite last year’s over-

supply.

Bukit Asam hopes to see exports contribute to

60% of its sales this year, up from 55% in 2013.

During the first nine months of 2013, exports

to Taiwan made up 17% of the company’s total

sales, India accounted for 14%, followed by

China with 9%, Malaysia 8%, Japan 3% and

Vietnam 2%.

Bukit Asam has set a production target of 22.7

million tonnes this year, an increase of around

22% from the 2013

output of 17.5 mil-

lion to 18 million

tonnes.

It also aims to

market 3.5-4 million

tonnes of third party

coals, compared to

2.5 million tonnes

last year.

Milawarma says

the company has

prepared a capital

expenditure budget

of Rp 2.5-3 trillion in

2014, up from the

2013 figure of Rp

2.2 trillion. This

includes the Tarahan

Port expansion work.

PT BUKIT Asam milik pemerintah sedang

meningkatkan kapasitas Pelabuhan Tarahan di

Sumatera Selatan dengan membangun jetty baru

yang dapat menangani kapal berukuran besar.

Proyek pengluasan yang diperkirakan selesai

di pertengahan kedua tahun 2014 akan

meningkatkan kapasitas perusahaan dari 13 juta

ton ke 25 juta ton.

Terminal Batubara Tarahan berada di Bandar

Lampung, lebih kurang 410 km dengan keretapi

dari tambang batubara Tanjung Enim, dimiliki

penuh dan dikelola oleh Bukit Asam.

Begitu pelabuhan siap untuk operasi komersil,

kapal sampai seberat 200.000 DWT dapat

bongkar muat di jetty baru, disamping kapasitas

untuk kapal Panamax yang ada yang dapat men-

gelola kapal sampai 80.000 DWT.

Pengembangan pelabuhan didukung oleh pen-

ingkatakan kapasitas stockpile batubara dari

560.000 ton ke 860.000 ton. Ia juga akan

dilengkapi dengan dua RCD (Rotary Car

Dumpers) baru di bulan Juli bagi mendukung

operasi pertambangan dan logistis perusahaan.

Bukit Asam merencanakan kenaikan ekspor

batubara sebesar 25% di tahun 2014, dengan

mengambil kesempatan dari kenaikan per-

mintaan pasar batubara internasional, terutama

dari Jepang dan pasaran-pasaran batubara baru di

kawasan tersebut.

Presdir Bukit Asam Milawarma mengharapkan

permintaan dari Jepang meningkat bersamaan

dengan rencananya membangun fabrik-fabrik

tenaga listrik berbahan bakar batubara setelah

kejadian nuklir Fukushima pada tahun 2011 dan

juga atas tingginya harga minyak.

Ia memperkirakan ini akan meningkatkan

ekspor batubara dari Indonesia dan juga dari

Bukit Asam.

Ia berkata bahwa peluang ini sangat meng-

galakkan, apalagi permintaan dari Taiwan dan

Vietnam tetap tinggi walaupun adanya persediaan

yang berlebihan tahun lalu. Bukit Asam meng-

harapkan ekspor akan menyumbang 60% dari

penjualannya tahun ini, naik dari 55% pada tahun

2013.

Selama 9 bulan pertama 2013 ekspor ke

Taiwan mencapai 17% dari total penjualan

perusahaan, India 14%, China 9%, Malaysia 8%,

Jepang 3% dan Vietnam 2%.

Tahun ini Bukit Asam telah menetapkan target

produksinya 22.7 juta ton, naik 22% dari 2013

dan produksi dari 17.5 juta ke 18 juta ton.

Ia juga berencana memasarkan 3.5 – 4 juta ton

batubara pihak ketiga ketimbang 2.5 juta ton

tahun lalu.

Milawarma mengatakan bahwa perusahaannya

telah menyediakan anggaran belanja modal sebe-

sar Rp 2,5 – 3 triliun untuk tahun 2014, naik dari

Rp 2,2 tiriliun di 2013. Ini termasuk biaya

pengluasan Pelabuhan Tarahan.

Indonesia

Bukit Asam increasing port capacity

Bukit Asam meningkatkan kapasitas pelabuhan

The expansion at Tarahan Port will take annual coal capacity from 13 million to 25 million tonnes.Pengembangan Pelabuhan Tarahan akan meningkatkan kapasitas tahunan batubara dari 13 juta ke 25 juta ton.

KILLARA Resources has entered

into a binding agreement with

Indonesian mining contractor

Berkah Ciwi Lestari Kaltim

(BCLK), for the further develop-

ment and coal production from its

Borneo Emas Hitam (BEH) coal

project in East Kalimantan.

Production was expected to begin by

the end of March.

BCLK started deployed heavy

equipment and personnel to the site

in late December for an immediate

focus on overburden removal to

expose coal for extraction.

During the second week of

January BCLK, Killara and the local

community held a traditional cere-

mony to mark the commencement of

mining and followed with land clearing.

BCLK is a subsidiary of PT Buana Celebes,

which has experience in nickel mining at Pomala,

Sulawesi Tenggara and at coal projects in East

Kalimantan as a mining contractor for Alamoudi

Resources.

BEH is divided into three blocks - Eastern,

Central and Western. Killara’s initial priority is

Eastern Block based on outcrop and drilling data.

This area has three short-term production targets

(pits 4, 6 and 8) which have been subject to land

compensation.

An additional 28 core samples from the unde-

veloped area in Eastern Block have been sent to

PT Geoservices’ Balikpapan laboratory for analy-

sis. A total of 78 samples from drilling and out-

crops have been submitted for analysis with

results confirming a direct shipping thermal coal

product with high CV and low ash, but with vary-

ing sulphur levels.

Killara has completed the Eastern Block explo-

ration and mining will start there.

Mine designs and the mining sequence for the

operation in pits 4, 6 and 8 are ready and BCLK

will commence mining based on designs from

Killara on compensated areas.

Management is engaged in dis-

cussions with coal buyers while a

non-technical team is engaged in the

IUP renewal process with a well

advanced application with regional

authorities.

Killara also has an option to

acquire a direct interest in a coal

concession in Central Kalimantan

owned by PT Pagun Taka (PT).

This concession is in a prospec-

tive area known to host coal and

Killara is planning to undertake

extensive field work to determine its

economic value for shareholders.

A field reconnaissance program

has been completed focusing on val-

idating geological information pro-

vided by the vendor which included

field mapping, laboratory analysis and associated

reports.

Killara identified coal from three geological

formations at PT - Montalat, Berai and Warukin.

The Montalat and Warukin formations are subject

to mining in an adjoining concession and through-

out Central Kalimantan.

Field mapping identified 22 coal outcrops with

true thickness averaging 0.61 and ranging up to

1.45 metres.

Thirteen outcrops were sampled and results

confirmed a direct shipping thermal coal with very

low ash and low sulphur.

KILLARA Resources telah menandatangani per-

janjian dengan kontraktor pertambangan

Indonesia Berkah Ciwi Lestari Kaltim (BCLK)

untuk perkembangan selanjutnya dan produksi

batubara dari proyek batubaranya Borneo Emas

Hitam (BEH) di Kalimantan Timur. Diperkirakan

produksi akan bermulai pada akhir Maret.

BCLK mulai menurunkan alat-alat berat dan

personil ke daerah tersebut pada akhir Desember

dengan tujuan selekasnya membuang timbunan

diatas batubara untuk ditambang.

Pada minggu kedua Januari BCLK, Killara

dan masyarakat setempat mengadakan acara

tradisi permulaan pertambangan yang disusul

oleh pembersihan tanah.

BCLK adalah anak perusahaan PT Buana

Celebes, yang berpengalaman di pertambangan

nickel di Pomala, Sulawesi Tenggara dan

proyek-proyek batubara di Kalimantan Timur

sebagai kontraktor pertamban gan untuk

Alamoudi Resources.

BEH terdiri dari tiga blok – Timur, Tengah

dan Barat. Prioritas utama Killara mula-mula

adalah pada Blok Timur berdasarkan outcrop

dan data penggalian.

Blok ini mempunyai tiga produksi jangka

pendek (lombong 4, 6 dan 8) yang memerlukan

kompensasi tanah.

28 lagi sampel galian dari daerah yang belum

dikembangkan di Blok Timur telah dikirim ke

laboratorium PT Geoservices di Balikpapan

untuk analisa.

Sejumlah 78 sampel dari galian dan dari atas

permukaan telah dikirim untuk analisa dengan

hasil mengkonfirmasi adanya batubara yang

bias dikapalkan yang mempunyai CV tinggi

dan kadar abu rendah, tetapi dengan kadar sul-

fur yang bervariasi.

Eksplorasi Killara di Blok Timur telah selesai

dan penambangan akan dimulai disana.

Desain tambang dan prosedur penambangan

untuk operasi lombong 4, 6, and 8 telah siap

dan BCLK akan memulai penambangan

berdasarkan desain dari Killara pada blok yang

sudah diberi kompensasi ini.

Pihak manajemen sedang berdiskusi dengan

pembeli-pembeli batubara sedangkan sebuah

tim non-teknis sedang mengurus proses pem-

baruan IUP dengan permohonannya sudah jauh

dimuka dalam kebijaksanaan pihak berwenang

setempat.

Killara juga mempunyai opsi untuk membeli

saham di konsensi batubara di Kalimatan

Tengah yang dimiliki PT Pahun Taka (PT).

Konsensi ini diketahui mengandungi

batubara dan Killara berencana mengadakan

kerja lapangan yang ekstensif bagi memastikan

nilai ekonomis untuk para pemegang saham-

nya.

Sebuah program siasatan lapangan yang

berfokus pada mengkonfirmasi informasi dari

penjual termasuk peta kawasan, analisa labora-

torium dan laporan-laporan lain telah selesai.

Killara telah mengetahui adanya batubara

dari tiga formasi geologis di PT – Montalat,

Berai dan Warukin.

Formasi Montalat dan Warukin bergantung

pada penambangan di daerah sekitarnya dan

juga di Kalimantan Tengah.

Peta lapangan menunjukkan 22 timbunan

batubara dengan tebal 0.61 sampai 1.45 meter.

13 timbunan telah disampel dan hasilnya

mengkonfirmasi batubara panas yang dapat

dikapalkan mengandungi kadar abu yang sangat

rendah dan kadar sulfur yang rendah.

Killara engages mining contractor for BEH

A coal stockpile at the BEH project of Killara Resources.Stockpile batubara di proyek BEH Killara Resources.

Killara gunakan kontraktor pertambangan untuk BEH

Indonesia



Indonesia

Orpheus Energy cash flow positive

Cash flow Orpheus Energy positifORPHEUS Energy telah mencapai sebuah mile-

stone yaitu menjadi cash-flow positif menyusul

dibayarnya batubara kapalnya yang keenam

yang dimuat bulan Desember yang lalu. Ia terus

menambang dan mengangkut batubara dari

proyek ADK di Kalimantan Selatan ke

pelabuhan SKJM yang dapat membongkar muat

5000 ton setiap hari.

Dengan adanya kestabilan dalam pertamban-

gan, pengangkutan dan perdagangan, Orpheus

telah membuat fondasi yang berkesinambungan.

Perusahaan sekarang puas bahwa operasi

penambangan dan logistiknya berjalan secara

konsisten, dan proses manajemen terkendali baik

bagi meyakinkan operasi yang berterusan.

Diperkirakan produksi bulanan meningkat

melebihi 50.000 ton sepanjang 2014, walaupun

produksi di bulan Januari berkurang oleh karena

cuaca buruk dan proses klarifikasi batas dengan

tambang tentangga PT Arutmin. Ini memaksa

Orpheus menyelesaikan rencana penambangan

yang baru yang akan dilaksanakan di kawasan

baru.

Bulan Desember perusahaan berhasil menam-

bang sekitar 30.000 ton dari ADK setelah penam-

bangan dan pengangkutan kembali beroperasi

pada tanggal 21 Nopember menyusul hujan lebat

diluar musim pada awal kwartal. Disamping itu

perusahaan juga menjual sekitar 22.000 ton

batubara dari produsen kecil setempat.

Pembeli batubara ini adalah sebuah grup pen-

gusaha Indonesia yang telah terus komit membeli

batubara Orpheus ADK yang ada untuk 12 bulan

kedepan dengan jumlah bulanan 50.000 ton.

Sebagai tambahan, dengan bertambah cepat-

nya operasi dagang Orpheus, ini berarti pertam-

bahan yang sebanding dalam cash flownya.

Walaupun tidak ada kenaikan harga batubara

diperkirakan, kesempatan meningkatkan penda-

patan ternayata ada untuk setengah tahun kede-

pan dan setelah itu. Contoh-contoh ini termasuk:

• Pengnegosiasian biaya insfrastruktur

batubara

• Memasarkan batubara berdasarkan FOB dari

kapal induknya dan bukan FOB dari kapal pen-

gantaranya

• Depresiasi dollar Australia ketimbang dollar

US karena kontrak penjualan Orpheus dibayar

dalam US$.

Ketua Eksekutif Wayne Mitchell berkata,

“Mencapai cash-flow positif dalam waktu dua

tahun setelah di listing adalah suatu pencapaian

yang luar biasa. Kami bangga dapat mencapai ini

yang memenuhi objektif kami untuk akhir 2013,

dengan jalur pendapatan yang bervariasi dan lan-

dasan untuk terus berkembang. Ini sangat meng-

galakkan terutama ini dicapai dalam masa

keadaan eknomi global yang mencabar dan

harga batubara yang buruk.

“Strategi integrasi vertikal kami dengan men-

gendali infrastruktur, produksi batubara dan

perdagangan telah berhasil baik dan menem-

patkan perusahaan untuk mencetuskan cash flow

bebas tanpa mengurangkan pemegang saham.

Fokus kami untuk 2014 adalah terus

meningkatkan penjualan batubara, mengu-

rangkan biaya-biaya operasi dan menghasilkan

pendapatan positif untuk para pemegang

saham.”

ORPHEUS Energy has achieved a signifi-

cant milestone - becoming operationally

cash flow positive after receiving payment

for its sixth barge of coal loaded in

December. It continues to mine and haul

coal from ADK project in South

Kalimantan to the SKJM barge loading

port, which it manages. It is also making

improvements to loading efficiency at

SKJM with 5000 tonnes barges now able to

be loaded daily.

With steady-state mining, hauling, load-

ing and trading now in place, Orpheus has

established a sustainable foundation. The

company is satisfied its mining and logis-

tics operations are now performing consis-

tently, with a well-controlled management

process in place to ensure sustainability of

operations.

The monthly production rate is anticipated to

increase to more than 50,000 tonnes during 2014

although production was reduced in January due

to further poor weather and a boundary clarifica-

tion process with neighbouring mine PT Arutmin.

This prompted Orpheus to finalize a new mine

plan to commence mining in a new area.

During December the company mined around

30,000 tonnes from ADK after normal mining and

trucking activities resumed on November 21 fol-

lowing heavy unseasonal rains earlier in the quar-

ter. Additionally the company’s trading division

sold about 22,000 tonnes of coal from small local

producers.

The buyer of the coal is an Indonesian trading

group that has committed to ongoing purchases of

all available Orpheus ADK coal over the next 12

months at the rate of about 50,000 tonnes a month.

Additionally, as Orpheus’s trading operations

accelerate, this will translate into a commensurate

increase in free cash flow generated. While no

near-term increase in the prevailing coal price is

assumed, there are existing opportunities for

Orpheus’s net margin to be increased over the

course of the next half year and beyond. These

include:

• Ongoing renegotiations on coal infrastructure

rates;

• Selling coal on a FOB mother vessel basis

instead of FOB barge basis;

• Depreciation of the Australian dollar against

the US as Orpheus sales contracts are paid in $US.

Executive chairman Wayne Mitchell says, “To

achieve cash flow positivity within two years of

listing is an outstanding achievement.

“We are proud that we have been able to fulfil

this stated objective by end 2013, with diversified

revenue streams and a platform for continued

growth.

“This is particularly encouraging given it was

achieved despite an extremely challenging global

economic and poor coal price environment.

“Our vertical integration strategy through con-

trolling our infrastructure, coal production and

trading is performing well and positions the com-

pany to generate significant free cash flow without

diluting shareholders.

“Our focus for 2014 is to continue to ramp-up

coal sales, reduce operational costs and generate

strong positive income for shareholders.”

A fully loaded barge at SKJM port. Loading efficiency at the port has recently been improved with5000 tonne barges now loaded daily.

Tongkang penuh muatan di pelabuhan SKJM. Efisiensi bongkar-muat di pelabuhan tsb telah dit-ingkatkan baru-baru ini memungkinkan memuat 5000 ton tiap hari.


Indonesia

WALAUPUN kondisi pasaran 2013 kurang baik, PT Toba Jaya dan

Coal Fe Resources tetap meneruskan operasi proyek batubara PT

Pancaran Surya Abadi (PSA) di Kabupaten Kutai Lama, Kalimantan

Timur, berkat pengendalian ketat biaya-biayanya.

Kondisi-kondisi waktu ini telah menutup banyak operasi produksi

terutama di Kutai Lama disebabkan kerugian.

Ketua Komisaris Coal FE Chan Foo Khee mengatakan bahwa kon-

disi-kondisi buruk telah berdampak gawat terutama dimana empunya

tambang bergantung pada pihak ketiga bagi menyewa alat-alat pertam-

bangan untuk operasinya.

Berkat pengontrolan biaya yang ketat PSA dapat terus beroperasi

walaupun dengan produksi yang berkurang.

Oleh karena keadaan pasaran kurang baik yang berkepanjangan dan

risiko-risiko untuk meneruskan beberapa proyek-proyek eksplorasi

yang sedang dikerjakan oleh perusahaan, Dewan Komisaris telah

memutuskan tahun lalu untuk tidak memohon pembaharuan izin-izin

eksplorasi di proyek-proyek Palapa dan Andalas.

“Walaupun kondisi pasaran batubara kurang baik, kami terus merasa

digalakkan oleh permintaan untuk batubara lignit PSA yang cukup sta-

bil, dan mitra pengelolaan tambang bersama kami Toba Jaya berhasil

membatasi biaya operasi tambang dan terus berhasil bersaing.

“Bagaimanapun, produksi yang berkurang disebabkan harga-harga

batubara yang rendah telah berdampak pada cash-flow perusahaan.

Karenanya kami akan meneruskan langkah-langkah menghemat serta

mengelola kredit dengan baik dan bekerjasama dekat dengan Toba Jaya

untuk meningkatkan produksi selekas mungkin.

“Keinginan tetap ada untuk memulai kembali negosiasi antara

perusahaan dan Toba Jaya untuk pembelian Toba Jaya kalau kondisi

pasar sudah stabil.

“Dengan penyelesaiannya Coal Fe akan memperkuat kedudukannya

dalam industri batubara di Indonesia.

“Kedua pihak akan tetap memperhatikan kondisi-kondisi pasar.”

Tenemen PSA dengan luas 991 hektar telah mendapat Izin Usaha

Penambangan Operasi Produksi.

Fase pertama program eksplorasi seluas 300 hektar diperkirakan

mempunyai cadangan yang memenuhi JORC sebanyak 34,5 juta ton

dengan 691 hektar masih belum dieksplorasi.

Coal Fe dan Toba Jaya, sebuah kontraktor pertambangan Indonesia

terkenal, memasuki joint venture dan kemitraan pengelolaan tambang

pada bulan April 2009.

Toba Jaya membangun infrastruktur tambang dan memulai produksi

di akhir 2010.

Pada kwartal Desember tercatat penjualan batubara sebanyak 36.294

ton dengan keseluruhan produksi pada tahun 2013 sebanyak 248.982

ton, meningkat dengan lebih kurang 40% ketimbang jumlah pada tahun

2012.

Penjualan-penjualan ini menghasilkan royalti sebesar US$1,00 per

ton untuk Coal Fe.

PSA meraih keuntungan dari pengendalian yang ketat

DESPITE adverse market conditions during 2013, PT Toba Jaya and Coal

Fe Resources have continued operations at PT Pancaran Surya Abadi

(PSA) coal project in Kutai Lama Regency, East Kalimantan, owing to

their tight control of costs. The conditions have forced many coal mines

in Indonesia, particularly in Kutai Lama, to stop production because they

were operating at a loss.

Coal FE’s chairman Chan Foo Khee says the adverse conditions have

hit particularly hard where mine owners have depended on third parties

for hiring mining equipment for their operations. The tightly controlled

costs at PSA have enabled operations to continue, albeit at a lower pro-

duction.

He said owing to the prolonged bearish market sentiments and the risks

involved in pursuing some of the exploration projects being undertaken

by the company in Indonesia, the Board had taken the decision last year

not to renew the exploration licences at the Palapa and Andalas projects.

“Despite the adverse conditions prevailing in the coal market, we con-

tinue to be encouraged by the fact that demand for the PSA type of lig-

nite coal has remained relatively stable and our joint mine management

partner Toba Jaya has been able contain the mine’s operating cost and

maintain its competitiveness.

“However, the reduced production, due to prevailing low coal prices,

has inevitably impacted on the cash flow of the company.

“In this regard, the company will continue its austerity measures and

careful credit management whilst working closely with Toba Jaya on

increasing production as soon as possible.

“There is willingness between the company and Toba Jaya to recom-

mence negotiation on the proposed acquisition of Toba Jaya when market

conditions stabilize. The completion will put Coal Fe in a much stronger

footing in the coal industry in Indonesia. The parties will continue to

monitor market conditions.”

The PSA tenement is issued with the final mining, operation and pro-

duction licence (Izin Usaha Penambangan Operasi Produksi) and encom-

passes an area of about 991 hectares.

Phase 1 of the exploration program covered about 300 hectares and

resulted in identification of a JORC-compliant resource of about 34.5

million tonnes with the remaining 691 hectares presently unexplored.

Coal FE entered into a joint venture and mine management agreement

with PT Toba Jaya, an established Indonesian mining contractor, in April

2009. Toba Jaya developed the mine infrastructure and commenced pro-

duction in late 2010.

In the December quarter coal sales of 36,294 tonnes were recorded

with total 2013 production amounting to 248,982 tonnes, an increase of

about 40% on the 2012 figures. These sales translate into a royalty of

US$1.00 per tonne for Coal Fe.

PSA benefits from tight cost control

ABOVE: Loading coal from a barge to an ocean-going vessel.Membongkar muat batubara dari kapal tongkang ke kapal lautan.RIGHT: Mining at the PT Pancaran Surya Abadi (PSA) coal project.Penambangan di proyek batubara Pancaran Surya Abadi (PSA).


Indonesia

PENGADAN dan instalasi Stammler Flat

Back Feeder baru di sarana bongkar-muat

sungai Proyek Batubara Delta di Kalimantan

Timur diharapkan meningkatkan efisiensi

mencampur dan membongkar-muat batubara.

Proyek yang 33.3% dimiliki Altura Mining

dan terdaftar di ASX dimiliki 66.6% dan

dikelola oleh Delta Coal.

Instalasi feeder baru oleh Delta ini serta

perpanjangan konveyor menggandengi pen-

ginstalasian alat yang sama di sarana

pelabuhan sungai tersebut sebelumnya.

Produksi Delta pada kwartal Desember

sama dengan kwartal sebelumnya yaitu

118.531 ton rata-rata per bulan ketimbang

126.645 ton pada September 2013. Jumlah

produksi pada waktu ini kurang dari recana

per bulan yaitu 146.000 ton oleh karena ter-

lambatnya suplai armada oleh kontraktor yang

dibarengi dengan hujan yang melebihi jumlah

rata-rata mengakibatkan pengurangan hasil

operasi pertambangan.

Sepanjang kwartal Desember seperempat

dari operasi pertambangan mengalami hujan

selama 51 hari berjumlah 772 mm, hampir

dua kali lipat dari kwartal September dengan

hujan selama 34 hari berjumlah 391 mm.

Bertambahnya turun hujan telah memperlam-

bat penambangan batubara dan pengangkutan

batubara mentah ke pusat proses.

Jumlah produksi Delta untuk bagian kedua

tahun 2013 ialah 735.529 ton suatu pen-

ingkatan sebanyak 29% ketimbang bagian

pertama tahun itu walaupun dipengaruhi

cuaca buruk. Penjualan sebanyak 452.332 ton

di kwartal Desember ialah 42% diatas jumlah

di kwartal September walaupun pesan untuk

batubara menurun di kwartal tersebut.

Pada kwartal yang sama negosiasi dengan

kontraktor tambang untuk menurunkan biaya

pengangkutan dan pembuangan overburden

siap diselesaikan. Ini berhasil mengurangkan

biaya pokokrnya mulai Oktober 2013.

Penurunan-penurunan ini diiringi oleh jatuh-

nya Rp ketimbang dollar US yang

meningkatkan ongkos bahan bakar dan men-

jadikannya bagian besar dari jumlah biaya.

Sementara itu Altura terus melaksanakan

fesibility study pemerintah (GFS) dan proses

AMDAL (Pernyataan Dampak Lingkungan)

untuk daerah Kodio Multicom (KM) dan

Marangkayu Bara Makarta, daerah paling

selatan dari royek Tabalong di Kalimantan

Selatan. Diharapkan GFS dan AMDAL

lengkap dan diserahkan kepada pihak-pihak

berwenang setempat pada akhir Maret.

Dengan adanya persetujuan akan hal-hal ini

KM dan MBM dapat ditingkatkan dari taraf

eksplorasi ke operasi produksi menuju ke izin

menambang.

Program evaluasi sumber sedang

diteruskan. Tujuannya ialah untuk mengetahui

jumlah dan mutu batubara di Tabalong. Altura

percaya adanya cukup potensi untuk mengi-

dentifikasi PCI dan metalurgis batubara di

daerah tersebut.

Feeder baru di Proyek Delta

THE installation and commissioning of a new

Stammler Flat Back Feeder at the river loading

facility of the Delta Coal Project in East

Kalimantan is expected to provide greater effi-

ciency for blending and loading the coal car-

goes. The project is 33.3% owned by ASX-list-

ed Altura Mining and 66.6% owned and operat-

ed by Delta Coal.

The installation by Delta of the new feeder

and conveyor extension compliments the previ-

ously installed identical unit at the river port

facility.

Production at Delta during the December

quarter remained consistent with the previous

quarter with monthly average coal production

of 118,531 tonnes, compared to 126,645 tonnes

during the September 2013.

The current level of production is below the

planned monthly average of 146,000 tonnes

with delays in contractor supplied mining fleets

and above average rainfall reducing coal output

from the mining operation.

During the December quarter mine opera-

tions experienced 51 rainfall affected days for

772mm, almost double the rainfall in the

September quarter with 34 rainfall affected

days for 391mm. The increased rain caused

delays in uncovering coal in the pits and

haulage of the raw coal to the process plant.

Total Delta production for the second half of

2013 was 735,529 tonnes which represents a

29% increase over the first half of 2013 despite

the increased influence of wet weather. Sales

for the December quarter of 452,332 tonnes

represent an increase of 42% over the

September quarter despite some softening in

demand for coal during the quarter.

During the quarter negotiations were com-

pleted with the mining contractors to reduce the

current mining rates for waste removal and

haulage. The successful negotiations resulted in

a decrease in the base waste removal rate and

applied from October 2013. These reductions

were offset by a fall in the Indonesian Rupiah to

the US Dollar, which caused an escalation in

the contractor’s fuel costs which form a signifi-

cant proportion of total costs.

Meanwhile, Altura continues to progress the

Government Feasibility Study and AMDAL

(Environmental Impact Statement) processes

for the Kodio Multicom (KM) and Marangkayu

Bara Makarti (MBM) tenements, the southern-

most tenements in the Tabalong project in

South Kalimantan.

Altura expected that the GFS and AMDAL

would be completed and lodged with relevant

local authorities by the end of March. Approval

will pave the way for KM and MBM to be

upgraded from exploration to operation produc-

tion and move them closer to approval to mine.

The resource evaluation program continues.

It is aimed at determining the potential quantity

and coal quality type in the Tabalong holdings.

Altura believes there is good potential to identi-

fy PCI and metallurgical coal in the area.

New feeder installed at Delta project

The new Stammler Flat Back Feeder at Delta Coal Project’s river loading facility.Feeder Stammler Flat Back baru di sarana bongkar-muat di sungai Proyek Batubara Delta.


Indonesia

JATENERGY has signed a cooperation agreement with Realm Resources

to jointly maximize the value of adjoining coal resources in Central

Kalimantan. The agreement is focused on two adjourning properties

within the Katingan region known as Coal Soil Brik (CSB) and Katingan

Ria (KR).

The companies have identified potential mutual benefits that may arise

from closer cooperation in regard to commercialization of the coal

resource in the region and the potential to supply a proposed power sta-

tion development and/or export markets.

Jatenergy’s CSB project is immediately south of KR and contains

extensions of the JORC coal resources defined by Realm and could, if

combined, extend the size and/or life of a potential operation. CSB and

KR are shaping as a simple, open-cut operation. The projects are near the

town of Tumbang Samba.

Results from KR show it will supply low ash and low sulphur coal ide-

ally suited for modern coal power generation, both domestically and for

export. Indicative product specifications are consistent with Indonesian

4200 kcal/kg (GAR) low sulphur (0.2%) coal.

Both CSB and KR were planned to be open cut mines with coal hauled

40-45km to a stockpiling and barge loading facility on the Katingan

River. Barges will then transport coal 435km from the stockpile area to

the river mouth for transhipment into coal ships. Coal is planned to be

sold unwashed, meaning there is no metallurgical treatment required to

achieve a saleable product.

Recent discussions have focused on the potential to supply coal to a

200MW power development near the town of Kasongan in Central

Kalimantan.

This has the potential to see the CSB and KR mine developed largely

as a domestic coal supplier, thereby eliminating a significant proportion

of the logistics costs and issues associated with river seasonality. Coal

supply, which is required by 2016/17 for the power stations, could there-

fore be developed for both domestic and export markets.

PT PLN (Persero), the Indonesian state-owned electricity corporation,

issued a request for proposal in 2013 for construction and operation of

two 100MW power stations near Kasongan in 2016/17.

Realm states that KR is the most developed and best defined coal proj-

ect in the region and this, together with the coal having the ideal specifi-

cations, places the project in good stead to be preferred supplier for the

development.

Realm is continuing to engage with several of the power station con-

sortia bidders and PLN as the process is still under way. Jatenergy and

Realm are also initiating discussions with other potential strategic part-

ners and off-takers to commercialize the Katingan asset.

The agreement between Jatenergy and Realm will only add to this

process as networks and efforts are combined for mutual benefit.

Jatenergy, Realm in Katingan agreement

LEFT: The Katingan River at Tumbang Samba.

Sungai Katingan di Tumbang Samba.

Jatenergy dan Realmdalam perjanjian KatinganJATENERGY dan Realm Resources telah menandatangani perjanjian

untuk bersama-sama memaksimalkan nilai masing-masing sarana

batubara bersampingan di Kalimantan Tengah. Perjanjian ini berfokus

pada dua kawasan bersampingan di daerah Katingan yang dikenal

sebagai Coal Soil Brik (CSB) dan Katingan Ria (KR).

Kedua perusahaan telah mengidentifikasi potensi khasiat-khasiat

dating dari kerjasama dekat dalam hal pengkomersialisasian sarana

batubara di daerah tersebut dan potensi sebagai penyalur batubara ke

stasiun tenaga listrik yang direncanakan serta pasaran ekspor.

Proyek CSB-nya Jatenergy berada langsung diselatan KR dan men-

gandungi ekestensi batubara JORC yang didefinisikan oleh Realm dan

kalau dijadikan satu, akan memperpanjang umur potensi operasi. CSB

dan KR akan berbentuk tambang terbuka. Proyek-proyek ini berada di

kota Tumbang Samba.

Hasil-hasil dari KR menunjukkan batubara dengan kadar abu dan

sulfur yang rendah , ideal sebagai bahan bakar pembangkit tenaga

listrik, dalam dan luar negeri. Spesifikasi indikatif hasil sesuai dengan

syarat-syarat batubara Indonesia yaitu 4200 kcal/kg (GAR) dan kadar

sulfur rendah (0,2%).

Kedua-dua CSB dan KR merencanakan tambang terbuka dengan

hasilnya diangkut 40-45 km ke tempat penumpukkan dan sarana

bongkar muat tongkang di Sungai Katingan.

Dari sini tongkang akan membawa batubara 435 km ke muara untuk

dipindahkan ke kapal angkutan batubara. Direncanakan menjual

batubara ini tanpa permurnian, yaitu tidak menjalani proses metalurgis

untuk dapat dijual.

Perbincangan belakangan ini berfokus pada potensi menyediakan

batubara ke sebuah pembangkit tenaga listrik sebesar 200 MW dekat

Kasongan di Kalimantan Tengah.

Ini berpotensi menjadikan tambang CSB dan KR penyedia batubara

untuk konsumsi domestic, karenanya mengurangkan sebagian besar

biaya logistic dan hal-hal menyangkut perubahan-perubahan kondisi

sungai. Persediaan batubara untuk pembangkit-pembangkit tenaga

listrik diperlukan pada tahun-tahun 2016/17, dan dapat untuk pasaran

domestic dan ekspor.

PT PLN (Persero), perusahaan listrik negara, telah mengeluarkan

permintaan untuk rencana 2013 untuk membangun dan pengoperasian

dua pembangkit tenaga listrik sebesar 100MW dekat Kasongan pada

tahun 2016/17.

Realm mengatakan bahwa KR adalah proyek batubara terdefinisi

yang terbaik di daerah tsb dan bahwa batubaranya mempunyai spesi-

fikasi yang ideal, menempatkan proyek ini menjadi penyedia terpilih

untuk pengembangan.

Realm terus berbincang dengan bidders pembangkit-pembangkit

tenaga listrik dan PLN karena prosesnya masih berterusan. Jatenergy

dan Realm juga memulai diskusi dengan potensi mitra strategis dan

off-takers untuk mengkomersialisasikan sarana Katingan. Persetujuan

antara Jatenergy dan Realm akan membantu proses ini karena jaringan

dan usaha bersatu untuk khasiat bersama.


Indonesia

CHURCHILL Mining menyatakan bahwa

Pusat Internasional Penyelesaian Pertikaian

Investasi (ICSID) tribun penyelesaian pertika-

ian terdiri dari Profesor Gabrielle Kaufmann-

Kohler (Presiden), Michael Hwang SC (arbitra-

tor) dan Profesor Albert Jan van den Berg (arbi-

trator), telah menolak tantangan Republik

Indonesia terhadap keputusan Tribun.

Keputusan tersebut memungkinkan Churchill

untuk memohon ganti rugi terhadap pemerintah

Indonesia mengenai hak-hak atas tambang

batubara Kutai Timur. Menyusul keputusan

tersebut Indonesia mengatakan akan mema-

sukkan perlawanan atas keputusan itu. “Kami

akan memasukkan objection” kata Ketua

Komisi BKPM Mahendra Siregar di Jakarta.

“Keputusan ini tidak sejalan dengan ketentuan

hukum di Indonesia.”

Kementerian Pengadilan dan Jaksa Agung

Indonesia akan mempersiapkan objection terse-

but, katanya tanpa memberikan waktu kapan

akan memasukkan objection tersebut.

Churchill, dan anak perusahaan Austrlianya

Planet Mining, sedang meminta ganti rugi tidak

kurang dari US 1.05 Milyar, tidak termasuk

interest, bagi menuyelesaikan pertikaian yang

telah berjalan lama ini. Perusahaan melancar-

kan arbitrasi terhadap pemerintah Indonesia

pada bulan May 2012 di ICSID di Washington.

Proyek Batubara Kutai Timur mengandungi

cadangan batubara panas dunia yang memenuhi

syarat JORC sebanyak 2,730 Milyar ton dan

bernilai lebih kurang US$ 1,8 Milyar.

Ketua Komisaris Churchill David Quinlivan

mengatakan, “Kami sangat gembira bahwa tri-

bun menolak tantangan juris Republik

Indonesia dan sekarang memungkinkan

Churchill dan Planet mengusut klaim-klaimnya

untuk ganti rugi terhadap Republik Indonesia

dibawah Perjanjian Bilateral Investasi

Indonesia dan masing-masing dengan Kerajaan

Inggeris dan Australia.”

Secara ringkas, tantangan hukum oleh

Republik Indonesia mengklain bahwa:

• Republik Indonesia tidak pernah menyetu-

jui arbitrasi ICSID dalam pertikaian dengan

Churchill dan Planet Mining dibawah

Perjanjian Bilateral Investasi antara UK-

Indonesia dan Australia-Indonesia, and/atau

• Seandainya dibuktikan bahwa Republik

Indonesia telah menyetujui arbitrasi ICSID

sebagai hal umum, tribun itu masih tidak punya

penguatkuasaan oleh karena investasi Churchill

dan Planet Mining ada diluar cakupan inves-

tasi-investasi yang termaktub dibawah masing-

masing Perjanjian Bilateral Investasi.

Dalam keputusannya, Tribun menolak sang-

gahan Republik Indonesia dan menyatakan

bahwa Tribun tersebut mempunyai kuasa atas

permohonan yang dimasukkan oleh Churchill

dan Planet.

Dalam pernyataannya tanggal 10 Mei 2013

tersebut, Churchill memberikan perkiraan ganti

rugi untuknya dan Planet disebabkan oleh tin-

dakan-tindakan Republik Indonesia tidak

kurang dari US$1,054 Milyar, tidak termasuk

bunganya.

Churcill dan pengacaranya, Quinn Emanual

Urquhart & Sullivan, LLP, memohon keteran-

gan dari Tribun akan jadwal memasukkan klaim

Churchill untuk ganti rugi dan waktu pengadi-

lan bermula.

Churchill diizinkan mengusut kerugian-kerugian

Churchill clear to pursue damagesCHURCHILL Mining advises that the

Intern ational Centre for Settlement of

Investment Disputes (ICSID) arbitral tribu-

nal, comprising Professor Gabrielle

Kaufmann-Kohler (president), Michael

Hwang SC (arbitrator) and Professor Albert

Jan van den Berg (arbitrator), has rejected the

Republic of Indonesia’s challenges to the

Tribunal’s jurisdiction.

The ruling enables Churchill to pursue

claims for damages against the Indonesian

government relating to the expropriation of

the firm’s rights over the East Kutai coal

mine.

Subsequent to the decision Indonesia indi-

cated that it is set to file a challenge against

the ruling. “We will file an objection,” said

Investment Coordinating Board (BKPM)

chairman Mahendra Siregar in Jakarta. “The

recent ruling is not in line with the existing

law in Indonesia.”

Indonesia’s Justice Ministry and the

Attorney General Office will work on the

objection, he said without providing any

timeframe to file the objection.

Churchill, and its Australian subsidiary

Planet Mining, are seeking damages of not

less than US$1.05 billion, excluding interest, to

settle the long-running dispute. The company

began arbitration against the Indonesian govern-

ment in May 2012 at the ICSID in Washington.

The East Kutai Coal Project is a world-class

thermal coal deposit with a JORC-compliant

resource of 2.730 billion tonnes and a value of

about US$1.8 billion.

Churchill’s chairman David Quinlivan says,

“We are pleased that the Tribunal has rejected the

Republic of Indonesia’s jurisdictional challenges

and the Tribunal decisions now allow Churchill

and Planet to pursue their claims for damages

against the Republic of Indonesia under the

respective Bilateral Investment Treaties

Indonesia entered into with the United

Kingdom and Australia.”

In summary, the jurisdictional challenges

by the Republic of Indonesia claimed:

• The Republic of Indonesia had not con-

sented to ICSID arbitration of the dispute

with Churchill and its wholly-owned sub-

sidiary Planet Mining under the UK-

Indonesia and Australia-Indonesia Bilateral

Investment Treaties, and/or

• Even if the Tribunal found that the

Republic of Indonesia had consented to

ICSID arbitration as a general matter, the tri-

bunal would still lack jurisdiction because

Churchill and Planet’s investments fell out-

side the scope of protected investments under

the respective Bilateral Investment Treaties.

In its ruling, the Tribunal dismissed the

Republic of Indonesia’s challenges and found

that the Tribunal has jurisdiction over the

claims Churchill and Planet have submitted.

In its announcement of May 10, 2013,

Churchill provided a preliminary estimate of

its and Planet’s damages as a result of the

actions taken by the Republic of Indonesia of

not less than US$1.054 billion, excluding interest.

Churchill and its lawyers, Quinn Emanuel

Urquhart & Sullivan, LLP are seeking directions

from the Tribunal on the schedule for submis-

sions and hearings on Churchill’s claims for

damages.

Core samples from the East Kutai Coal Project.

Sampel-sampel inti dari Proyek Batubara Kutai Timur.


Indonesia

INDUS Coal dan mitra Indonesianya PT Param Energy sedang meneruskan

pembicaraan dengan grup-grup yang tertarik membeli atau ikut membiayai

Blok 9 Proyek Batubara Jambi di Sumatera. Indus telah melaksanakan per-

janjian tertutup dengan beberapa grup energi dan resource internasional bagi

memfasilitas program-program pengamatan (due diligence) melalui data-

room. Kunjungan ketempat telah pula dilaksanakan di Blok 9 dan terus

berlangsung.

Direktur Eksekutif Indus Vinay Hariani berkata, “Beberapa dari perusa-

haan-perusahaan ini memang kami kenal dan pernah bertransaksi dengan

PT Param Energy sebelumnya. Izin Produksi pertambangan baru-baru ini

dan peningkatakan keyakinan serta kepercayaan pada pemilihan-umum

Indonesia dan India mendorong permintaan untuk aset batubara seperti Blok

9. Grup-grup ini sedang mencari sekuritas persediaan (batubara) dan tidak

banyak aset batubara di daerah ini dan terutama di Indonesia yang mempun-

yai nilai proposisi Blok 9, karena ratio stripnya yang rendah, akses ke infra-

struktur yang sudah ada, umur tambang yang baik dan kecilnya keperluan

biaya modal.”

Di awal Maret Departemen Pertambangan dan Energi Kabupaten Muara

Tebo mendeklarasikan Izin Usaha Pertambangan (IUP) untuk Blok 9.

Ketua Komisi Ekesekutif Indus Scott Douglas mengatakan, “Ini adalah

keberhasilan yang signifikan untuk Indus. Di Blok 9 kami telah meng-

gariskan 94 juta ton batubara yang memenuhi spesifikasi JORC, menyele-

saikan rencana tambang dan penelitian tambang, menentukan infrastruktur

yang diperlukan bagi memulai operasi pertambangan dan telah menyele-

saikan segala izin menambang untuk produksi.

“Harus diingat bahwa segala ini diselesaikan dalam waktu 14 bulan sejak

mendapatkan proyek-proyek Batubara Jambi. Tentunya pujian kepada tim

Indus dan sekali lagi menggarisbawahi sumbangan mitra Indonesia kami PT

Param Energy. Fokus kami adalah meneruskan pembicaraan dengan grup-

grup yang berminat membeli atau ikut membiayai Blok 9 dan memugar izin

eksplorasi hutan di kwartal tiga 2014.”

Indus mengatakan bahwa ia telah memperpanjang waktu pengeluaran

‘convertible bonds’ dan telah mendapat $3.67 juta, diluar biaya-biaya,

melalui sarana pinjaman. Ini memungkinkan Indus meneruskan pen-

ingkatakan izin kehutanan untuk Blok 9, meneruskan pembersihan lahan

dan menyelesaikan definisi aset di Blook 9 dalam rangka menilai harga Blok

9 dengan grup-grup berminat membeli seluruh atau bagian dari Blok 9 men-

jadi mitra pembiayanya.

Indus berfokus pada penilaian biaya proyek-proyek batubara Jambi dan

Muko Muko dalam 12 bulan kedepan dan terus membangun skala melalui

akuisisi dengan PT Param Energy, sebuah perusahaan yang didirikan oleh

Vinay Hariani ialah sebuah usaha pertambangan batubara berintegrasi ver-

tikal dengan 15 tahun pengalaman dalam proyek identifikasi batubara, per-

tambangan batubara dan jual-beli batubara internasional di Indonesia.

Indus meneruskan pembicaraan Blok 9

INDUS Coal and its Indonesian partner PT Param Energy are continuing

discussions with groups interested in acquiring or co-funding Block 9 of the

Jambi Coal Projects in Sumatra. Indus has executed confidentiality agree-

ments with several international resource and energy groups to facilitate

their due diligence programs through the dataroom. Site visits have also

been conducted at Block 9 and are ongoing.

Indus’ executive director Vinay Hariani says, “A number of these compa-

nies are known to us and have transacted with PT Param Energy in the past.

The recent approval of our Production Mining Lease and the growing cer-

tainty and confidence around the Indonesian and Indian elections is driving

further demand for coal assets like Block 9.

“These groups are looking for long term security of supply and there are

not a lot of coal assets in the region and certainly not in Indonesia with the

value proposition of Block 9 given its low strip ratio, accessibility to exist-

ing infrastructure, mine life and minimal capital expenditure commitment.”

In early March the Muara Tebo Regency Department of Mines and

Energy granted the Production/Operation Izin Usaha Pertambangan (IUP)

on Block 9. Indus’ executive chairman Scott Douglas says, “This is a signif-

icant milestone for Indus. On Block 9 we have delineated a 94 million tonne,

JORC-compliant coal resource, completed mine planning and mine studies,

identified key infrastructure to commence mining operations and have com-

pleted all mining approvals for production.

“It should be noted this has been completed within

14 months of acquiring the Jambi Coal Projects. It is a

credit to the Indus team and again highlights the value

of our Indonesian partner PT Param Energy. Our focus

is to continue discussions with the groups interested in

acquiring or co-funding Block 9 and upgrading the

forestry exploration permit in the third quarter of

2014.”

Indus advises that it has extended the term of the

convertible bonds issue and has raised $3.67 million,

before costs, through a bridge funding facility. The

refinancing enables Indus to progress with upgrading

the forestry licence for Block 9, continue land clear-

ances and complete the resource definition on Block 9

to facilitate the monetization of Block 9 with groups

interested in acquiring all or part of Block 9 or to

become a funding partner.

Indus is focused on monetizing the Jambi and

MukoMuko coal projects over the next 12 months and

continuing to build scale through further acquisitions

with PT Param Energy, a company founded by Vinay

Hariani and which is a vertically integrated coal min-

ing business with 15 years of experience in coal proj-

ect identification, coal mining and international coal

trading in Indonesia.

Indus continues Block 9 discussions

Indus Coal’s Block 9 coal project in Sumatra and associated infrastructure.Proyek batubara Indus Blok 9 di Sumatera dan infrastruktur terkait.


Indonesia briefs

CHALLENGER Deep Resources Corp has

entered into a binding Letter of Intent (LoI) for

the sale of its Barito Coal Project in Central

Kalimantan. Under the terms of the LoI the pur-

chaser, a private Australian company, will pur-

chase all of the outstanding shares of PT

Bestindo Energy, a wholly-owned subsidiary of

Challenger which holds all the corporation's

rights to the project.

The purchase price is US$2 million with

$50,000 payable on signing of the LoI,

$100,000 on signing the formal Conditional

Share Purchase and Sale Agreement

(CSP&SA), $150,000 within 60 days of signing

the CSP&SA, $500,000 on preliminary forestry

permit approval for the project and $1.2 million

on final approval of the forestry permit and

commencement of commercial production.

Challenger will also be granted a royalty of

US$2 per tonne on all coal produced from the

project lands and from lands within a 2km area

of interest surrounding the project lands in which

the purchaser may acquire further coal rights.

Effective immediately, the purchaser has

assumed responsibility for all ongoing expenses

of PT Bestindo Energy and the Barito project.

As a consequence of its significant financial

interest in the project going forward,

Challenger will provide such advice to the pur-

chaser in its development efforts as may be

appropriate. Challenger will continue its efforts

to finance or to find a joint venture partner for

its Tabang Coal Project in East Kalimantan and

will continue to review business opportunities

in both the resource and non-resource sectors.

Toba plans 20% production increase

PT Toba Bara Sejahtra Tbk (Toba) produced

6.5 million tonnes of coal in 2013, an increase

of 17% from the 5.6 million tonnes produced in

2012. The company expects production this

year to increase by 20% to around 7.8 million

tonnes.

The average selling price in 2013 dropped by

7.5% to $70 per tonne from $72.50 in the previ-

ous year and Toba estimates that its selling price

will drop again this year, to $63-67 per tonnes.

In 2013, Toba realized capex of US$19-23

million, which was primarily allocated to land

compensation, construction of new a CPP at

IM, completion of 17km of haul road from

TMU to ABN and construction of ABN’s sec-

ond underpass. Toba generated cost savings of

around US$4-8 million from the total initially-

planned capex of US$27 million slated for

2013.

In 2014, Toba is targeting capex of US$15-24

million (including Perkebunan Kaltim Utama

I), mainly allocated for land compensation at

TMU, exploration at TMU, operational and

infrastructure maintenance at ABN and IM, and

a palm oil mill.

Tata to sell stake for $120 million

Tata Power expected to complete the sale in

its Indonesian subsidiary PT Mitratama Perkasa

by the end of April, subject to obtaining requi-

site approvals. Tata agreed to sell a 30% stake

in Mitratama Perkasa to Indonesian conglomer-

ate Bakrie Group for $120 million.

The stake in Mitratama Perkasa was held by

another Tata Power subsidiary in Indonesia, PT

Sumber Energi Andalan Tbk, which signed the

deal with Bakrie Group.

In a statement Tata Power said: “Prior to the

sale, PT Mitratama Perkasa would be restruc-

tured to hold infrastructure assets in relation to

PT Arutmin Indonesia, and Tata Power, through

its subsidiaries, would continue to hold 30%

Challenger Deep sells Barito project


Indonesia briefs

Direktur stake in PT Kaltim Prima Coal

(KPC) related infrastructure assets.” KPC owns

one of the largest thermal coal-producing mines

in the world.

It is part of the $500 million agreement Tata

Power announced on January 31 regarding the

sale of the 30% stake it held in mining compa-

ny PT Arutmin Indonesia, and its associated

infrastructure assets, to the Bakrie Group.

Continuing losses at Mundra Ultra Mega

Power Project (UMPP) in Gujarat, India, have

created stress on Tata Power’s balance sheet.

“Keeping the under-recovery challenges in

Mundra UMPP operations and cash flow con-

cerns in mind, we have signed an agreement to

exit from PT Arutmin Indonesia to get addition-

al cash flow and to reduce our consolidated

debt,” Tata Power’s managing director Anil

Sardana said.

Energy Earth to acquire three mines

Energy Earth, a Thai-based, SET-listed coal

miner and distributor, will acquire three mines

in Kalimantan to support a goal of more than

doubling coal sales to 20 million tonnes by

2016.

The company currently operates a mine in

Myanmar through a joint operating agreement

with a local partner. This mine, for which

Energy Earth is the operator and distributor of

the coal, has reserves of 40 million tonnes.

Energy Earth intends to issue debentures

worth 5 billion Thai baht to buy a fifth mine in

2016. The company’s five-year plan through

2016 envisions five mines operating and coal

sales more than doubling to 20 million tonnes a

year, up from 8 million tonnes last year.

In January this year, Energy Earth moved

from the Market for Alternative Investment to

the SET. It also intends to set up a new sub-

sidiary based in Hong Kong during May called

Energy Earth (Hong Kong) Company Ltd.

Waratah signs joint venture agreement

ASX-listed Waratah Resources has executed

a Heads of Agreement with Marylebone Capital

Corporation, regarding an Indonesian coal joint

venture. Waratah and Marylebone are conduct-

ing negotiations with several coal producers in

Indonesia, and have signed a co-operative

agreement to reflect this joint venture.

Marylebone is an investment house specializ-

ing in resources and property, and has devel-

oped relationships with global coal and iron ore

end users in China and India.

In February Waratah, formerly Waratah Gold,

secured firm commitments via private place-

ment to sophisticated investors to raise $1.08

million. Its main focuses are the Youkou Iron

Ore Project in Gabon, Central Africa, and the

Okanabora direct shipping ore iron project in

the Republic of Congo.

Jorong to close mine in 2018

PT Jorong Barutama Greston plans to close a

coal mining operation in South Kalimantan in

2018.

The subsidiary of PT Indo Tambangraya

Megah (ITMG) has signed a Memorandum of

Understanding to renegotiate the contract with

the Ministry of Energy and Mineral Resources.

ITMG director Leksono Poeranto says

Jorong has pocketed a working contract licence

for coal mining and exploitation (PKP2B) of

the second generation, which will expire in

2028.

“However, the coal reserves will run out in

three years, so the company has initiated a mine

closure operation in our concession area.”

Jorong manages 50% of the entire concession

area of 9000 hectares. The company has been in

production since December 10, 1999, and has

produced about 40 million tonnes of coal with a

calorific value of 5300-5800 kcal.

The company has assigned Lambung

Mangkurat University to assist with the closure.

PTT Plc plans to list Sakari Resources

Thai energy firm PTT Plc plans to list the

shares of its subsidiary coal business, Sakari

Resources, on the Indonesia Stock Exchange.

CEO Surong Bulakul says the plan will be real-

ized in the next two years when global coal

prices increase.

PTT first entered Indonesia’s coal business in

2008 by acquiring a 94% stake in Sakari

Resources, which operates mines at Sebuku and

Jembayan in Kalimantan. Sakari’s listing was

then removed from the Singapore Stock

Exchange.

“We have been considering listing Sakari on

the Indonesia Stock Exchange but the low price

of coal led us to postpone the listing,” Surong

Bulakul says.

To address the decline in coal prices, PTT

plans to cut production costs, restructure

administration such as human resources and

logistics as well as increase the efficiency of

production.

It predicts global coal prices to increase to

US$80 later this year, driven by a surge in

demand from major sectors in China, India and

Japan.

APAC Coal in investment dispute

In June last year APAC Coal and majority

shareholder Magnus Energy Group, along with

Magnus’ wholly-owned subsidiary Antig

Investments, issued a Notice of Intent to

Resolve Investment Dispute through

Consultations and Negotiations to the

Government of the Republic of Indonesia.

The purpose of this action is to seek recourse

under the agreement between the Singapore and

Indonesia governments on the Promotion and

Protection of Investments, and the agreement

between the Australian and Indonesian govern-

ments concerning the Promotion and Protection

of Investments.

APAC is sourcing a litigation funder to fund

the full cost of the International Centre for

Settlement of Investment Disputes arbitration

since it has exceeded the six month waiting

period for the Indonesian authorities to respond

to its Letter of Intent to Resolve Investment

Dispute through Consultations and

Negotiations under the Business Investment

Treaty on the Promotion and Protection of

Investments.

Mamahak production remains suspended

Production at Kangaroo Resources’

Mamahak Coal Project remains suspended

pending the results of ongoing drilling aimed at

identifying additional mineable coal resources

and reserves.

During the first quarter of 2014 all remaining

coal product was relocated to stockpiles at the

Long Hubung port area on the Mahakam River

but low river water levels prevented the barging

of any coal during the quarter, as was the case

in the previous quarter.

Remaining coal product stockpiles of around

67,308 tonnes will be barged and sold as soon

as river levels normalize and allow barging to

recommence. Bedding coal at the port currently

totals 4199 tonnes and this will also be barged

and sold when conditions permit, subject to

quality and markets.

Site investigation and exploration activities

continued during the quarter with three explo-

ration drill rigs in operation at the MCM con-

cession area along with one rig at the MEL con-

cession.

A total of 102 bore holes were drilled at

MCM during the quarter for an aggregate total

of 4721 metres and a further 39 holes equating

to 2318 metres were completed at MEL.

Drilling in MEL’s Western Area was completed

at the end of March with 131 holes having been

drilling in the area since June 2013. A new geo-

logical model is being developed for the MEL

concession to enable an initial resource assess-

ment to be made.

Kangaroo’s renewal application for the

forestry permit at the MCM mining areas has

been submitted and is being processed by the

Ministry of Forestry. A formal request has been

prepared for submission to the Ministry to

obtain additional permissions to enter the cen-

tral areas currently not covered under existing

forestry permits for the purposes of conducting

further geological survey work, and identifying

suitable access to the Eastern area for further

drilling.

A similar request has been made to enter the

central areas in the MBE concession areas for

survey work and identifying access for drilling.

Around the world


Uzgen Basin inferred resource up 16%TOTAL inferred resources at Celsius Coal’s Uzgen Basin Coking Coal

Project in the Kyrgyz Republic have increased by 40 million tonnes, or

around 16%, to 295 million tonnes. Most of the increase is from the Kokkia

site where the inferred resource increased 140%, or 35 million tonnes, to a

new total of 60 million tonnes.

There was also a 5 million tonne increase to 235 million inferred tonnes

at the Kargasha site. Open pit resources are now being estimated and an

auger mining study is progressing.

Celsius says there is also consistent quality data with continuing very

low moisture, low ash, low phosphorus and moderate sulphur.

The company’s technical director Alistair Muir says, “The aim of much

of the drilling was first exploratory work in the Kokkia area of the project.

We’re very happy with the 140% increase in inferred resources in this area

and this builds upon the favourable coal quality data we have received for

the drilling works to date, at both Kokkia and Kargasha.”

Liberty receives maiden estimateLiberty Resources has received a maiden independent coal seam

resource estimate and an updated exploration target estimate report on its

exploration tenement in Queensland’s Bowen Basin. The report estimates

an inferred resource of 104.4 million tonnes of coal within the Vermont and

Fort Coopers coal measures within 150 metres of surface.

It was based on Liberty’s drilling in August 2013 as well as previous

drilling and excludes the area covered by the pre-existing RTZ tenement.

Current drilling is targeting the Moranbah coal measures and Goonyella

coal seams. The company’s 2014 drilling campaigns are aimed at selecting

resource areas with greatest economic potential, providing samples for coal

quality assessment and generating further JORC-compliant resource esti-

mates.

The report concluded that further testing is likely to confirm exploration

target results could be within the range of hard coking–thermal coal. The

10.5% ash product after washing compares favourably with Queensland

coking coals. An additional exploration target within the range of 350 to

465 million tonnes is estimated within the tenement.

Energy regulator approves VistaThe Alberta Energy Regulator (AER) has approved Coalspur Mines’

Vista Coal Project in Alberta, Canada. In its decision, the AER panel stat-

ed that Vista “will result in a significant socio-economic net benefit to both

the local region and the province”.

The approval is a significant milestone in the regulatory process for the

approval of Vista and places Coalspur in a position to work with the regu-

lators to finalize detailed licences and permits over the coming months.

“This is an exciting landmark in the development of Vista and we are

pleased to have received approval from the AER,” says Coalspur’s presi-

dent and CEO Gill Winckler. “Receipt of this approval represents an impor-

tant step in Coalspur’s vision to be a leading export thermal coal producer.

The certainty that the decision provides, positions the company well as it

works to finalize the remaining funding for Vista over the coming months.”

The AER approval includes various requirements or conditions relating

to Vista’s coal processing plant, mine plan and end-pit lake, geotechnical

investigations, fines management, surface water quality, wetlands, wildlife

and noise mitigation.

No Objection Certificate for Oracle coal blockOracle Coalfields, the UK-based coal developer of a 1.4 billion tonne lig-

nite resource in the south-eastern desert of Sindh Province announces that

a No Objection Certificate was issued by the Environmental Protection

Agency Government of Sindh on January 17 for the Environmental and

Around the world

Social Impact Assessment for Block VI of the Thar Coalfield submitted in

2013 concerning its environmental plan.

Following the MoU with SEPCO Electric Power Construction

Corporation, which was announced on November 21, 2013, Oracle and

SEPCO are working on a Joint Development Agreement which they hope

will be concluded shortly.

Oracle’s CEO Shahrukh Khan says, “We are delighted to announce this

significant development. The issuance of the No Objection Certificate rep-

resents another major milestone in the development of our Thar Coalfield

project.

“The Board continues to advance towards the development of the proj-

ect, and shareholders should expect to receive further progress updates in

due course.”

Production begins at KangalaProduction has commenced at Universal Coal’s Kangala mine, 65km

from Johannesburg, South Africa. First delivery was made in March in line

with first commercial production having begun in February.

The delivery is part of an offtake agreement with South Africa’s leading

power utility ESKOM for annual supply of 2 million tonnes. Remaining

production will target the lucrative export markets, via an offtake agree-

ment with South African coal producer Exxaro Resources.

Kangala is the company’s first coal mine and the operation is now ramp-

ing up towards its annual nameplate capacity of 2.4 million tonnes, of

which 2.1 million tonnes is saleable.

Universal Coal’s CEO Tony Weber says, “This marks a significant mile-

stone as we progress towards becoming a mid-tier coal producer. Kangala

will provide steady and strong cash flow for the decade to come, laying the

foundation for further growth in helping to fund the progress of our pipeline

of quality coal assets.”

Dulanga coal production scheduleNTPC Limited, India’s biggest power generator, hopes to start produc-

tion from its allotted Dulanga coal block by March 2015. With a mineable

reserve of 152 million tonnes, the block is in the Ib valley coalfields and

linked to NTPC’s 1600MW super thermal power station being developed

at Darlipalli in Sundargarh district.

The cost of developing the block is estimated at 1556.65 crore and to

date NTPC has spent 76.92 crore on the project. In-principle environment

clearance was secured in March 2012 with final clearance expected after

receipt of the Stage-I forest clearance.

The development will occupy 464.15 acres of private land with notifica-

tion under Section 11 of the Coal Bearing Areas CBA Act, 1957 issued.

Land rates have been finalized and disbursement of compensation will

commence after approval from NTPC’s board. The development of town-

ship, rehabilitation & resettlement colony and necessary infrastructure

needs another 410.07 acres of land.

Arch sells Hazard subsidiary

Arch Coal has sold its Hazard subsidiary to Blackhawk Mining for

US$26.3 million in cash, prior to post-closing adjustments. The sale

includes the Hazard thermal coal mining complex and related infrastructure

as well as about 38 million tonnes of thermal coal reserves in eastern

Kentucky, USA.

As part of the sale, Arch has divested $15.6 million of reclamation liabil-

ities to Blackhawk, and expects to be released from $43.8 million of recla-

mation surety bonding. In addition, Arch has the potential to receive future

royalty payments of up to $35 million in aggregate over the next five years

resulting from its retention of select coal reserves at Hazard.

“The sale of our Hazard subsidiary demonstrates that we are continuing

to streamline our mining portfolio and monetize assets that are not essen-

tial to our future growth plans,” says Arch’s president and CEO John W

Eaves. “This transaction allows us to further sharpen our focus on strategic

assets that have the highest return potential, such as our growing

Appalachian metallurgical coal franchise and our low-cost Western thermal

coal platform. At the same time, the proceeds from the sale further strength-

en our already substantial cash and liquidity position.”

Crown Mountain model updatedJameson Resources continues to advance the Crown Mountain Coking

Coal Project in British Columbia, Canada, with work well under way on the

pre-feasibility study. Final quality results confirm property-wide coking

coal characteristics that are within the range of typical hard coking coal

shipments from the Elk Valley Coalfield.

Norwest Corporation has updated the geologic model with the results

from the 2013 drilling program and re-estimated the Crown Mountain

resource by incorporating results from the 2013 drilling program.

Measured and indicated resources increased by 8.6 million tonnes, from

66.3 to 74.9 million tonnes. The inferred resource remains at 23.7 million

tonnes as the Southern Extension was not explored in 2013.

Coal quality test work on samples collected from the 2013 drilling pro-

gram has been completed and with a CSR range of 67 to 76 the Crown

Mountain coal is comparable to that shipped from nearby mines. Norwest

believes the product will compare favourably with the best hard coking

coals in Canada.

Environmental assessment work continues as a fast-track program.

Stream water quality sampling continued on a monthly basis and the

required 2-year history was expected to be completed in April. Ground

water monitoring is ongoing, the weather station is operating, a wildlife

study has been completed, and overburden characterization is progressing.

Berkh Uul on fast-trackViking Ashanti has won control of takeover target Auminco Mines by

gaining acceptances of 90.96% for the unlisted coal development company

and intends to fast-track production at the Berkh Uul project in northern

Mongolia. The takeover offer period has been extended to Friday, May 23.

Unlisted private Australian company Auminco holds the Berkh Uul proj-

ect that is next to a rail link that connects with Russian markets, and pro-

vides quick access to domestic power plants and industrial users at Darkhan

and Ulaanbaatar. It has JORC resources of 38.3 million tonnes of high qual-

ity, open pittable unwashed bituminous coal.

Successful production at Berkh Uul would provide significant cash flows

to develop the remainder of the combined group's portfolio as well as seek

out further production and near- term production opportunities.

Auminco shareholders will emerge with a 47% stake in Viking, and play

a major role in the evolution of Viking as a participant in the Mongolian

thermal and coking coal markets. Auminco was established by founding

shareholders and management of Coalworks Ltd which was sold to

Whitehaven Coal in mid-2012.

Development risk is considered lower than for most Mongolian coal

companies as overall CAPEX for Berkh Uul is low by most standards;

start-up mining rate will not be large, with flexibility to build over time

with simple and proven mining and processing technology, thus reducing

funding and execution risk. In addition to an expanding domestic market,

demand from coal hungry Russia and China is forecast to drive growth in

the Mongolian coal market at an exponential rate.

Joint venture plan for PanoramaAtrum Coal has entered into joint venture discussions with Kuro Coal to

develop its Panorama Anthracite Project in British Columbia, Canada.

Kuro Coal is the spinout company of Atrum Coal and will be listed on the

ASX via IPO.

Atrum’s executive director Russell Moran says, “A joint venture at

Panorama is a win-win for Atrum and Kuro. The deal creates co-develop-

ment and co-marketing opportunities that will benefit both companies.”

Panorama is about 20km west of Atrum’s flagship Groundhog Anthracite

Project. It consists of two granted coal licences totalling 850 hectares of

contiguous tenure that is the subject of the proposed joint venture. The

Panorama area is the only other known outcrop of the Groundhog Coalfield

and is believed to be prospective for high grade anthracite.

The Atrum Board believes a joint venture rather than spin-out of

Panorama is appropriate. This will enable Atrum to retain influence over

the exploration and development of this potentially high grade and ultra-

high grade anthracite asset.


Supplier News


By Detlef Bluemke

LOESCHE Group has set up a

full service hub - called PT

Loesche Indonesia (LIND) - in

Jakarta, Indonesia. The office has

been in full operation since

January 2014 with the service

hub established in March.

The service hub is focusing on

plant modernization and spare

part supply as well as on site sup-

port with all kinds of services for

audits, maintenance, installation

and commissioning activities in

the entire Indonesian region.

For more than 40 years

Loesche has maintained business

relations in the Indonesian mar-

ket and now the company is

focusing on closer client relation-

ships and quicker reaction times

for the benefit of the local mar-

ket.

As one of the first steps taken by PT Loesche

Indonesia, a one-day seminar took place in the Le

Meridien Hotel in Jakarta on March 27, introduc-

ing the portfolio of the Loesche Group as well as

the activities of PT Loesche Indonesia.

Apart from high ranking members of

Indonesian cement producers, a wide audience

from the coal mining sector attended

the seminar with plenty of interest

shown.

Apart from the well-known and

world leading technology in the

cement grinding sector, Loesche has

also introduced the newly patented

coal enhancement process, which

attracted much interest, especially as

many Indonesian miners are looking

for a professional solution for coal

upgrading.

Subsequent to the seminar, the

official opening ceremony of PT

Loesche Indonesia took place, guid-

ed by the German ambassador, Dr

Georg Witschel, Loesche Group rep-

resentative Dr Thomas Loesche and

the assigned managing director of

PT Loesche Indonesia Detlef

Bluemke.

The open exchange of experiences

and information was continued and

enhanced during this ceremony.

The inauguration day was rounded off with an

evening dinner in the Le Meridien Hotel enabling

the further exchange of commitments.

Loesche sets up Indonesian service hubTo learn more about PT Loesche Indonesiaplease contact:

PT Loesche IndonesiaWorld Trade Center 5WTC 5/ Metropolitan ComplexWisma Metropolitan l, 7th FloorJl. Jend Sudirman Kav 29Jakarta 12920, lndonesiaPhone, office +62 21 571 2232 and

+62 21 571 2233Fax +62 21 571 2266

WWW.LOESCHE.COM

Supplier News


CATERPILLAR has announced its strategy for

meeting the needs of customers selling and pur-

chasing used Tier 4 Interim products for opera-

tion in lesser regulated countries, where prevail-

ing fuel quality and fuel sulphur content vary

widely. Based on extensive testing, analysis and

field validation, Caterpillar has determined that

Cat Tier 4 Interim engine systems between

130kW and 895kW will not require any modifi-

cation to operate in lesser regulated countries.

For Cat Tier 4 Interim engines less than

130kW, Caterpillar will offer authorized modifi-

cation processes that remove after-treatment from

machine and commercial engine configurations

to enable operation in lesser regulated countries.

Modification processes, which include decertifi-

cation, will be made available to customers in

lesser regulated countries exclusively through

their local Cat dealer beginning in 2014.

Caterpillar anticipates both the modified

<130kW engine systems and unmodified 130-

895kW engine systems will meet used equipment

customer expectations for operation in the vast

majority of potential lesser regulated export des-

tinations.

“Tier 4 used equipment migration is a complex

issue,” said Industrial Power Systems Division

vice president Ramin Younessi. “Because

Caterpillar serves customers in all markets, we

develop products to meet the needs of customers

in all types of regulatory environments. For

example, all non-road equipment operated in the

US, Canada, Europe and Japan must operate on

ultra-low sulphur diesel fuel.

“When equipment developed for certain mar-

kets, like our Tier 4 equipment, moves to differ-

ent markets, it adds challenges for Caterpillar, our

dealers and our customers. Challenges arise due

to diverse emissions regulations, the need for

dealer readiness training and the need to help cus-

tomers understand how to operate and maintain

these next generation products. Most importantly,

customers contemplating the purchase or modifi-

cation of used Cat Tier 4 products need to under-

stand and comply with their local regulatory

requirements.”

Since Caterpillar began introducing Tier 4

products in February 2011, the field population

has grown rapidly to more thasn 82,000 products

operating in North America, Europe, Japan and

Australia. These products have amassed almost

42 million operating hours, with excellent relia-

bility and fuel efficiency results - creating interest

among used equipment purchasers.

According to Ramin Younessi, a key consider-

ation for Caterpillar in developing its strategy for

Tier 4 migration was to help ensure customers

maintain the resale value of their used equipment.

This gives them options to sell in new markets,

including less regulated countries.

Cat’s solution for used Tier 4 product migration

Voith TVVS couplings do the jobINDONESIAN miner Bukit Asam is expanding

its coal operations at Tanjung Enim Mine in

Sumatra, Indonesia, and is continuing to rely on

Voith TVVS fluid couplings. For 10 new belt

conv eyors at Tanjung Enim, Bukit Asam dep -

loys 14 TVVS fluid couplings from 55-315 kW.

In the past, the mine operator has always been

pleased with the reliability of its already

installed Voith fluid couplings which ensure

smooth start-ups day after day and a long serv-

ice life for all components, especially the belts.

“We’re all very impressed with the perform-

ance of the TVVS constant-fill fluid couplings.

They’re very easy to maintain - only oil changes

are needed - and the reliability is just great,”

says Bukit Asam’s manager of maintenance

planning Kris Tjahajaning Tyas. The mine oper-

ates 24/7 and any equipment downtime means

loss of production.

In older sections of the mine they’ve been

using TVVS on belt conveyors since 1997 with-

out any unplanned downtime. “Proven reliabili-

ty is why we absolutely wanted to have Voith

fluid couplings in the new conveyor drives as

well,” adds Bukit Asam’s senior manager of

maintenance Tatra Muis.

Voith says its fluid couplings are well suited

for use in extreme environments and are com-

pletely insensitive to harsh conditions like dust,

dirt and humidity. The fine coal dust in Tanjung

Enim mine has no effect on performance. The

couplings dampen torsional vibrations in the dri-

veline and protect it against overload, extending

the life of the entire system. Because torque is

transmitted by a fluid, the power transmission of

the fluid couplings is wear-free, reducing main-

tenance to a minimum.

Bukit Asam’s maintenance managers are

happy with the many benefits the fluid cou-

plings provide. They also appreciate the advice

and after-sales support from the local Voith

team, along with unmatched know-how on the

entire drive system.

The 13 existing belt conveyors in the Tanjung

Enim mine still rely on TVVS fluid couplings

(rated from 55-500 kW) installed more than 17

years ago. The mine has two coal handling facil-

ities with the longest belt conveyor being 4284

metres-long and an hourly capacity of 1700

tonnes. The drive of this conveyor is equipped

with three 315 kW motors and three fluid cou-

plings, type 750 TVVS. In addition to the con-

veyor drives, the bucket wheel excavator drives

in the mine are equipped with five 750 kW fluid

couplings, Type T, that dampen vibrations and

protect the driveline from damage also in case of

frequently occurring overload.

Tanjung Enim Coal Mine is one of the largest

coal reserves in Asia. It has been in operation for

more than 90 years and in 2012 produced near-

ly 15.5 million tonnes of coal.

ABOVE: No unplanned downtime since 1997! Tanjung Enim Coal Mine relies on TVVSconstant-fill fluid couplings from Voith. BELOW: Voith fluid couplings are well suited foruse in extreme environments and are completely insensitive to harsh conditions.

Supplier News


Longwall automation goes global

CSIRO longwall automation technology can

deliver productivity increases of up to 10% but it

also provides scope for much more than increased

productivity – it can also improve safety by reduc-

ing the level of hands-on interaction of miners

with machinery in hazardous underground areas.

“That’s why more than 20 of the 30 or so long-

wall systems in Australia are already operating

with, or are about to embed, the CSIRO technolo-

gy,” says Dr David Hainsworth, who leads the

CSIRO’s mining science and engineering research

program.

A global equipment manufacturer has now

taken the technology to the United States and the

same company is now evaluating the technology

for other global markets.

In the longwall process – which accounts for

about 90% of Australia’s underground coal pro-

duction – a shearing machine with large rotating

cutting drums is driven back and forth across the

coal seam. With each pass a massive ‘slice’ of coal is ground off, falling onto

a conveyor system that transports it away from the face.

Clearly, alignment of the machine is critical to its performance and in the

past the machinery had to be stopped and adjusted every so often. This risky

job was carried out manually.

In the late 1990s, CSIRO researchers came up with – and patented – an

idea for automating the process, at the same time as the industry-backed

funding body, the Australian Coal Association Research Program (ACARP),

independently decided that automation was a priority for the future.

“The resulting research program was a resounding success, not only in

terms of innovation, but also as a model of implementation,” says Dr

Hainsworth. “The industry, equipment manufacturers and researchers all

worked together. Having industry champions for the introduction of new

technologies is essential.

“The involvement of ACARP meant support from mining companies for

field testing of ideas and prototypes when needed.”

Automation requires the ability to determine the equipment’s position

accurately in three dimensions, in order to plan and control its movements.

GPS technology cannot be used underground, so the researchers resorted to

highly precise inertial navigation systems developed to guide ballistic mis-

siles and tanks during the pre-GPS days of the Cold War.

Second, the position of the machinery has to be communicated to its con-

trollers and subsequent adjustments back to the machine. CSIRO developed

a communication system based on the commercial implementation of its

own WiFi ethernet.

Finally, ACARP demanded an open communication protocol to enable all

the elements involved in automation to communicate with each other no

matter from which manufacturer they came.

Dr Hainsworth says the most important thing to emerge from the project

was the commercialization model. “The technology had to be delivered to

the industry as an integral part of longwall mining equipment, not just an

add-on, and it could not be exclusive to just one manufacturer – this was an

ACARP requirement. Finally, as a research organization, CSIRO could not

support this technology directly in the field.”

Fortunately, the equipment manufacturers saw that the industry was com-

mitted, and that they needed to buy into this technology, so they accepted a

non-exclusive licensing model.

The real key was CSIRO’s initiative to use part of its IP revenue to pro-

vide guaranteed technical assistance to each manufacturer early in the life-

time of the system. The manufacturers recognized that not only had they

avoided development costs, but the system would be supported through its

teething period and continually upgraded by the people who understood it

best.

After success on home soil, Australian automated longwall technology has taken to the internation-al stage in coal mines in the United States, as Tim Thwaites reported in the ‘resourceful’ magazineof Australia’s Comnmonwealth Scientific and Industrial Research Organization (CSIRO).

A typical longwall system for underground coal mining.


Product News

Flexco’s quick solution for belt damageLAST year Adimitra Baratama Coal encoun-

tered a big problem - one of the belts at the busy

operation was ripped and the damage was

extensive enough to shut the entire conveyor

down. Upon checking the supply of belting in

inventory, Adimitra manager Wandy Gunawan

and his maintenance team realized they only

had about half the belting needed to get the con-

veyor running again.

They contacted the belt manufacturer to get

belting to the site as soon as possible but the

order would take about two months to arrive

and Wandy Gunawan did not want to lose valu-

able production time. Based on past experience,

he contacted Flexco. “I knew that by presenting

the challenge I was facing to the Flexco team, I

would get a solution.

“Flexco’s team not only discussed the prob-

lem over the phone, they also came out to eval-

uate the site and observe the rip.”

“When we arrived, employees were remov-

ing the ripped belt,” Flexco sales manager Dany

Koesoema said. “It was a good opportunity for

me to show them the installation tools and

explain procedures for punching the belt and

installing fasteners on the used belts.”

“They offered their advice and recommenda-

tions, and I discussed it with my team,” Wandy

Gunawan said. “Their timely action and prod-

uct demonstrations were very helpful.” The

unscheduled downtime was already costing

valuable production time and it was decided to

use Flexco Bolt Solid Plate 190 fasteners to

repair the 1000 metre rip. This fastening system

provides a strong, sift-free splice with superior

holding ability for use in tough material han-

dling applications. It also allows for quick and

easy onsite installation.

Dany Koesoema says the design and plate

compression on both the top and bottom sides

of the belt is key to the strength. High tensile

strength bolts compress top and bottom plates

to distribute splice tension across the entire

width of the fastener plate.

Specially-formed teeth penetrate deep into

the belt carcass for added strength without dam-

aging the carcass fibres. Ideal for use in tough,

abrasive applications like coal, the Bolt Solid

Plate Fastening System can be easily installed

with portable hand tools or power tools.

Exclusive piloted bolts feature tapered tips that

cradle the nuts securely in place, reducing

installation time.

The Flexco system can also be used to repair

conveyor belt holes and edge tears or combined

with three-bolt rip-repair fasteners to fix

jagged, length-wise belt tears.

“The Flexco team supervised our splicing

contractors and shared valuable information

and experiences with our mechanical supervisor

during the install,” Wandy Gunawan said. “This

was very valuable.”

Only five days passed between the time the

belt went down and the time it was running

again. While consulting with Flexco regarding

the repair, Wandy Gunawan was introduced to

the advantages of mechanical belt fasteners as a

standard splice. Unlike hot splicing, fasteners

could be installed upon receipt by the onsite

crew instead of waiting for a vulcanizing crew

to arrive. As a result, Adimitra elected to install

mechanical splices to join the belt in addition to

the rip repair.

“When they saw that they only needed about

one hour for one splice and that it could be done

by their own crew, they decided to join the belt

with mechanical fasteners as well,” Koesoema

said. “They also appreciated the fact that there

is less belt waste when using fasteners.”

Flexco SR™ Rivet Hinged fasteners were

chosen to join the belt together. Ideal for rubber

plied and PVC solid woven belting, the Flexco

SR Rivet Hinged System delivers the perform-

ance, long life, and easy installation that maxi-

mize belt availability. Plates are secured to the

belt with a staggered pattern of rivets.

The Flexco rivet design allows the rivets to

pass between carcass fibres, without severing

them, providing maximum holding ability and

evenly-distributed splice tension across the

width of the belt. Belts can be easily separated

by removing the hinge pin.

The Scalloped Edge™ design features a low

profile, reducing the fastener’s exposure to

cleaner blades, skirt rubbers and return idlers.

The reduced wear and tear on the fasteners

extends the life of the splice. Flexco SR fasten-

ers are also available with power installation to

reduce worker fatigue and ensure uniform

splices. Installation of the fasteners in the 1900

metre belt took about two and a half days.

“The conveyor is loading safely and properly

with the Flexco splice and rip repair,” Wandy

Gunawan said. “We consider the Flexco fasten-

ers to be a lifesaver and have decided that they

can be used on our belts in both normal and

emergency conditions.”

Flexco was able to repair a conveyor tear (above) at Adimitra Baratama Coal’s operationsusing Flexco Bolt Solid Plate 190 fasteners (below).

Product News


PT Rahman Abdijaya, a contract mining com-

pany at the Adaro coal mine near Tanjung in

Kalimantan, is one of two companies using

Atlas Copco’s DM45 rotary blasthole drill rig.

Rahman has used other drills but operators say

they prefer the easy operation of the DM45.

The Adaro mine produced 48 million tonnes

of coal in 2012 and Rahman produced 6.5 mil-

lion tonnes of that. There are three DM45 rigs

working at the mine.

The coal seam sits on a slanting angle of 30

to 45 degrees and is about 7 metres thick with

nine metres of overburden above it. As the over-

burden is pushed back from surface, the mine

operates on a 7 metre-wide by 16 metre-high

bench system. The coal body is mined to a

depth of 10 metres and totals 146,645sqkm.

Rahman uses multiple Atlas Copco DM45

rigs in a systematic drilling operation. On aver-

age a three-rig team drills 100 to 120 metres per

pattern. The current burden pattern is 6 metres

by 7 metres. The tooling Rahman prefers is the

Atlas Copco 7⅞-inch tricone bit with aggres-

sive conical buttons. Thirty-foot lengths of

Atlas Copco 6¼ inch OD pipe complete the

drill string.

The company blasts daily at midday. Because

the rock is unconsolidated and includes clays

and gravels, energy disbursement in the blast is

critical. Drill Foreman Rio Hartono explained

the blasting method as being a 50kg and 50kg

deck loading. The 8-metre hole is charged with

100kg of liquid emulsion, 50 on top and 50 on

the bottom, shot in two stages. Although the

two levels are shot simultaneously - the bottom

and top of the hole are separate non-electric

charges - the double charge ensures good frag-

mentation throughout the bench.

Rudi Hartono has been a drill operator for six

years and has operated four different drills rigs,

including blasthole and crawler-type drills. He

likes the ease and simplicity of the DM45 over

all the drills he’s operated from various manu-

facturers. He points out three things he says

make the DM45 easier to operate than the other

drills he’s run over the years:

• First are the controls. He says the controls

are “hands-on simple” and make it difficult to

make mistakes.

• Secondly are the connections - the act of

adding and removing drill pipe. Connections

are fast and simple with the DM45. “The action

is quick and easy. There is no wasted effort.”

• Finally, the safety shutout is a favourite fea-

ture for Rudi Hartono. Other blasthole drills

will not lock out tramming when the pipe isn’t

all the way back at its start position. He has seen

occasions in which drillers will not get the drill

pipe out of the hole before tramming, resulting

in damage and downtime.

At Adaro mine the mining continues and with

the Atlas Copco drill at the lead, it continues to

be one of the world’s top coal producing sites.

Rahman prefersAtlas CopcoDM45 rigs

WENCO Fleet Management Systems (FMS)

has been selected by PT Kayan Putra Utama

Coal (KPUC) to install a fleet management sys-

tem at its coal mine in Kalimantan.

Wenco, working with its Indonesian distribu-

tor PT Hexindo Adiperkasa Tbk, has begun

deployment of the first phase of the FMS for

production monitoring and control of Hitachi

excavators and haul trucks. Wenco’s regional

director, Australia and Africa, Jayson Bebek

spoke with Coal Age Indonesia about the

expected efficiency improvements and Wenco’s

‘fleet management centre of excellence’.

How will the Wenco Fleet Management

System assist with productivity?

It is typical for Wenco FMS users to realize 10%

or more productivity improvement. Expressed in

its simplest form, this would mean that for a mine

with 100 trucks it would be like adding 10 extra

trucks to the fleet or would allow them to park 10

trucks and achieve the same production.

Some of this gain is made immediately upon

the system going live, with intuitive applica-

tions and dashboards showing real-time infor-

mation about the location and activities of the

equipment, as well as various KPI statistics

allowing dispatchers and supervisors to identify

bottlenecks and opportunities, and make appro-

priate decisions to maximize production.

The critical point is that the information is

real-time, so you can make a decision now to

change the outcomes in the current shift, rather

than looking at reports at the end of the day

when it is too late to change the outcomes.

When the system is first turned on we are usu-

ally able to identify very quickly some opportu-

nities to gain a few more minutes of productive

time per item of equipment, especially around

meal breaks and shift change.

Further productivity gains are recognized as

more advanced features such as Automatic

Dispatch are brought online. Automatic

Dispatch utilizes advanced algorithms and real-

time knowledge of fleet movements to dynami-

cally assign trucks and shovels to maximize

productivity, blend material and achieve targets.

And finally, we store a comprehensive histo-

ry of mine operations into our open SQL Server

database. The database becomes an invaluable

tool to perform trending and analysis to identi-

fy further opportunities as part of the ongoing

continuous improvement process.

Wenco advocates that data collected by the sys-

tem belongs to the mine and it is our duty to make

access to data as easy as possible. We therefore

provide a suite of standard web-based reports and

a report builder, but also provide the database

schema so they can develop more complex reports

or extract data for 3rd party systems.

How does the ‘fleet management centre of

excellence’ support a mine?

At Wenco we approach each customer with a

view to partnering for the life of mine and pro-

viding a high level of personalized service.

Together with our distributor, Hexindo we

believe that the best way of achieving this is

through establishment of a centre of excellence

within Hexindo’s Balikpapan office.

Here we plan to develop a group of

Indonesian FMS support and training experts,

who can support and advise customers in how

to get the most from their investment. During

the centre’s ramp-up we will use personnel

from our other regional offices to mentor and

develop the Balikpapan team.

FMS and associated technologies are still not

widely adopted in Indonesia, however, there is

a growing interest in technology investments.

Unfortunately, with relatively few mines using

FMS there is a limited pool of experienced

users in the region. By partnering with a well-

established and resourced company such as

Hexindo, we believe we can make a major con-

tribution to the adoption of mining technology

in Indonesia, and assist customers develop the

skills of employees and get the most out of their

equipment.

Wenco system boosts KPUC productivity


Mining clubs anniversaryTHE two Indonesian mining clubs organ-

ized by Mining Media International, publish-

ers of The ASIA Miner, Coal Age Indonesia

and Engineering & Mining Journal, celebrat-

ed their first anniversary with a special joint

networking function in Jakarta on April 16.

Coal Club Indonesia and the Djakarta

Mining Club were launched at a well-attend-

ed function in Jakarta on April 15, 2013.

Since the launch both clubs have estab-

lished themselves as important forums and

networking events for Indonesia’s mining

industry. The clubs generally meet bi-monthly

and new members, sponsors and speakers are

welcome.

The next Coal Club Indonesia meeting will

be on June 12 with subsequent 2014 meetings

scheduled for September 4, October 22 and

November 20. The next meeting of Djakarta

Mining Club will be on May 22 with other

meetings scheduled for August 14 and October

30.

Foundation sponsor for both clubs is

Caterpillar. Platinum sponsor for Djakarta

Mining Club is Leighton and gold sponsors

are Weir Minerals and Reed Exhibitions,

organizers of Mining & Engineering (M&E)

Indonesia. Along with Caterpillar, Orica is a

foundation sponsor of Coal Club Indonesia

while gold sponsors are Reed Exhibitions,

Weir Minerals and the Australian

International School.

The clubs aim to provide a convivial net-

working outlet for companies, institutions and

business people of all nationalities involved in

or doing business in Indonesia, especially in

the mining industry. For inquiries contact

Dimas Abdillah in Indonesia at

[email protected] or Lanita Idrus

in Australia at [email protected].

Sumatra Miner conferencePreparations are progressing well for the

inaugural Sumatra Miner conference and

exhibition which will be held at the Aryaduta

Hotel in Palembang, South Sumatra, from

October 22-24. The event is being organized

by Mining Media International, publishers of

The ASIA Miner, Coal Age Indonesia and

Engineering & Mining Journal.

The conference will examine the mining

industry in Sumatra, focusing primarily on

coal but also including other resources such as

gold, silver and copper. It will also look at

plans to provide more infrastructure in

Sumatra to support the development of min-

ing.

Although Sumatra has been hit by the eco-

nomic downturn which has hit the global min-

ing industry hard, exacerbated by a number of

policies introduced recently by the Indonesian

Government, the island’s mining industry has

a very bright future and the Sumatra Miner

conference will provide demonstrate how and

why this is the case.

Sumatra’s coal industry is the second

largest in Indonesia, behind Kalimantan, but

there is tremendous potential for it to grow in

the future and Sumatra Miner can play an

important role in this process.

The exhibition will provide a showcase for

buyers and sellers to exchange information

and the latest innovations available to the min-

ing, energy and oil & gas industries.

For conference, exhibition and sponsorship

inquiries visit www.sumatra-miner.com or

contact Dimas Abdillah in Indonesia at dab-

[email protected] or niema@mmi-

indonesia.co.id, or in Australia contact Lanita

Idrus at [email protected].

Coal calendar of events

n Coaltrans West Coast, May 7-8, Vancouver,Canada. www.coaltrans.com

n Coaltrans Petcoke Summit, May 9,Vancouver, Canada. www.coaltrans.com

n Coaltrans Southern Africa, May 12-13,Cape Town, South Africa. www.coaltrans.com

n Russian and CIS Coal Summit, May 14-16,Moscow, Russia.

www.adamsmithconferences.com

nMines & Money Beijing, May 19-21, Beijing.www.minesandmoney.com

nWorld XTL Summit, May 19-21, London,UK. www.thecwcgroup.com

nMinTech 2014, May 21-23, Kazakhstan.www.kazexpo.kz/eng/ mintech/

n Coaltrans Asia, 20th anniversary event,June 1-4, Bali. www.coaltrans.com

n China International Coal Equipment &Mining Equipment Exhibition. June 12-14,Beijing, China. www.ciceme.com/en/

n Coaltrans World Anthracite, Coke, Coking &PCI Summit, June 18-20, St Petersburg,Russia. www.coaltrans.com

nQueensland Mining & EngineeringExhibition (QME), July 22-24, MackayShowground, Mackay, Queensland.www.queenslandminingexpo.com.au

n Coal Industry and Market Fundamentals,July 29-31, Brisbane, Queensland. www.infor-ma.com.au

nMine Ventilation 2014, July 29-31,Brisbane, Qld. www.miningiq.com/events/

n Coaltrans Australia, 10th anniversary,August 11-12, Brisbane, Queensland.www.coaltrans.com

nAusAsia MinTech 2014, August 26-28,Perth, Western Australia.www.miningiq.com/events/

n Coal Industry and Market Fundamentals,September 3-4, Sydney, New South Wales.www.informa.com.au

n Coaltrans Latin America, September 11-12,Colombia. www.coaltrans.com

n Coaltrans Coal Trading & RiskManagement, September 16-18, Singapore.www.coaltrans.com

n IMEX 2014, September 23-26, Las Vegas,USA. http://imex2014.com

n Sumatra Miner, October 20-22, Palembang,Indonesia.http://sumatra-miner.comn Coal Handling & Storage, October 22-24, StLouis, USA. www.mining-media.com/eventsnMining & Engineering Indonesia, October29-31, Jakarta. www.miningandengineeringindo.comn Haulage & Loading Australia, November 4-6, Perth, Western Australia. www.miningtechnologyaustralia.com

Advertising index

Events

Upcoming Indonesian mining events

Alluxindo Pratama Sukses ........................................................BC

AusAsia MinTech 2014............................................................. IFC

Australian International School Indonesia ..................................29

Balikpapan Expo 2014 ................................................................37

Coal Club Indonesia ...................................................................11

Coaltrans Asia ...........................................................................IBC

Djakarta Mining Club ..................................................................11

Gewinn Gold Hotama .................................................................41

Haulage & Loading Australia 2014 .......................................38-39

IMEX 2014 .............................................................................31-36

Intertek ........................................................................................3

M&E Indonesia 2014 ..................................................................15

Sumatra Miner .......................................................................25-28

CAI 2014 1 2006-Fourth quarter YOL - The ASIA Miner · PT Bukit Asam is upgrading the capacity of...

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Transcript of CAI 2014 1 2006-Fourth quarter YOL - The ASIA Miner · PT Bukit Asam is upgrading the capacity of...