Engineering & Mining Journal

AUG 2013

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INDONESIAN COAL supply for a dedicated mine-mouth baseload power plant. BEE is 61.04%-owned by Adaro Energy through ATA, 20% by PT Pamapersada Nusantara, 13.92% by PT Triputra Utama Selaras, and 5.04% by PT Bumi Alam Sejahtera. SMS completed all earthworks and road surfacing during the final quarter of 2012, while some permanent bridges are expected to be completed in 2013. On November 20, 2012, the haul road was officially commissioned by the South Sumatra governor. Phase 1 of the Muara Lematang stockpiling and barge loading facility was also completed and 10 barges and 70,000 mt were loaded prior to the end of the year. The facility will be expanded to an annual capacity of 30 million mt over the next few years with future upgrades planned and timed in accor- dance with market demand. SMS is 35%owned by Adaro Energy through ATA. Other Developments IndoMet Coal, a joint venture between BHP Billiton and Adaro Energy, is continuing the development of seven CCoWs in Kalimantan. IndoMet Coal continues to assess development options across all seven CCoWs and is constructing access roads and developing port facilities. In the fourth quarter of 2012, PT Bhakti Energi Persada (BEP) continued to work toward getting the required government permits, acquiring land, securing social and community support, and completing engineering and geological studies. These programs are required to be finished before significant capital expenditures are made. The current development plan is to bring the BEP concessions into production in 2014. Adaro has full control of the management, operations and funding of BEP from the date of signing on May 28, 2012. Electric Power Development Co. Ltd. (J-Power), Itochu Corp. and PT Adaro Power established PT Bhimasena Power Indonesia (BPI) in July 2011. On October 6, 2011, BPI and state-owned electricity company PLN signed a 25-year power purchase agreement, which includes construction of a 2,000 mw coal-fired power plant in Central Java. BPI expected to achieve financial closure by the end of 2012, but due to challenges related to land acquisitions, the Central Java power plant project will be delayed. It is not expected to be a lengthy delay nor will it harm the project or sponsors. Adaro said the challenges are not insurmountable and it will deliver this key project as soon as possible, bringing significant benefit to all stakeholders and helping build the nation. Most parties agree Indonesia cannot achieve its potential without increasing the country's power generation capacity and Adaro intends to help Indonesia achieve its full potential. Competitive Advantages Adaro Energy and its subsidiaries have numerous competitive advantages: • Unlike most conglomerate businesses, Adaro is controlled by five families that collectively hold 63%. Adaro believes the natural checks and balances that exist in this ownership structure ensure all decisions are made in the best in92 E&MJ; • AUGUST 2013 www.e-mj.com

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