Sunday, October 25, 2009

Lahai Coal’s Commitment To Society Empowerment

PT. Lahai Coal, a Central Kalimantan-based subsidiary company of BHP Billiton engaged in coal mining, is committed to society empowerment in its mining area. The company has initiated community-based activities, even when its current mining operation is still at explorative stage.

“We are working hard so as to bring the benefit to the local society and economy through our investment programs in the development of social-economy, education, basic infrastructure, health and sanitation sectors,” explained Bob Kurniawan, the company’s Superintendent for Public Relation and Development to Majalah TAMBANG.

Among the community development programs his company has been involved in since year 2005 is the establishment of 42 self-reliance groups in the villages across its mining area at Central Kalimantan’s Murung Raya regency. The groups’ types of activities are varied, from basic groceries supply to credit and saving service.

The company has also actively involved in the local education sector. Since 2005, it has spent as much as 742 million rupiahs through scolarship programs for approximately 550 students, from elementary to university level. It is also in cooperation with The Sampoerna Foundation in a training program for teachers and principals of the region’s elementary schools. In the health sector it initiated programs on medical and healthcare services.

The company had also invested in the region’s clean water infratructure, in the one which is built at Pande Siron village. The installation had provided clean water for the region’s surrounding villages. “We want to firstly give in as much as possible for the benefit of the local society, before we start gaining profit from our operations here,” concluded Mr. Kurniawan to our reporter.

Adaro’s Coal Production Raised By 7%

PT Adaro Energy, Tbk has announced a surplus of its coal production target. By the end of 2008, the company has produce 38,482 million tons of coal. It was a 7% surplus of the 38,124 million tons target, estimated by the company that was recently categorized as 45 LQ by the Indonesian Stock Exchange (IDX) authority.

The Indonesian second largest coal producer also accounted 41.1 million tons of sales, a 9% growth from last year record.

Boy Garibaldi Thohir, the president director of PT Adaro Energy, expressed his satisfaction of this achievement last Wednesday, on 4 February 2009. “Despite the problems and challenges that we must cope with, we are pleased with the result of our production and sales in 2008,” he said. According to Thohir, the increasing sales and production record was due to the stable demand of coal.

Specifically in the fourth quarter of 2008, the company has also gain success of producing 9.8 million tons and selling 10.2 million tons of coal. As a matter of fact, earlier in the year, the company had to face problems of bad weathers and low amount of stockpile.

In dealing with the current economic crisis, the company has been very careful in managing their cash flow. Additionally, they were committed in doing research on long-term growth strategy, by sustaining the previously set targets. The company listed as ADRO in the stock exchange is still in a viable financial structure, and tend to get even better.

Bukit Asam Prepares 5 Railways Constructions

PT Tambang Batubara Bukit Asam, Tbk (PTBA), one of Indonesia’s largest coal miners, has committed to support national electricity projects. However, the projects have often been impeded by the inadequate transportation infrastructure from mining sites to coal terminals. Therefore, Bukit Asam has prepared the construction of 5 railways in Sumatera to transport 130 million tons of coal per year.

Milawarman, Operational Director of PTBA, revealed the plan during his presentation on the second day of Association of Indonesian Mining Professionals (PERHAPI in its Indonesian acronym) Conference & Workshop 2009 entitled “Save Indonesian Coal”. The event was held on 18-20 March 2009, at Hotel Gran Melia Jakarta.

PTBA has estimated a coal production of 225 million tons for the year 2009, of which 75 million tons would be allocated for domestic demand and 150 million tons for export market. The domestic allocation would be utilized to support the national electricity project, i.e. to supply the needs of coal-fired power plants, which required 61.7 million tons of coal per year.

“Nevertheless, the distribution of a large amount of coal for electricity projects have been impeded by the inadequate transportation infrastructure,” Milawarman explained. Hence, since early 2009, PTBA has prepared 5 railways constructions to transport 130 million tons of coal per year.

The 5 railways constructions currently being prepared are upgrading the existing Tanjung Enim-Lampung railway (20 million tons/year of capacity); building another line of Tanjung Enim-Lampung railway (20 million tons/year of capacity); building the Tanjung Enim-Tanjung Api-Api railway (50 million tons/year of capacity); building the Tanjung Enim-Bengkulu Pulau Baai (20 million tons/year of capacity); and building the Tanjung Enim-Bengkulu Limau (20 million tons/year of capacity).

Additionally, PTBA also planned to build 5 mine mouth power plants, located in Bangko Tengah – South Sumatera (4x600 MW), Banjarsari – South Sumatera (2x100 MW), Tanjung Enim – South Sumatera (3x10 MW), Peranap – Riau (2x10 MW), and Tarahan – Lampung (2x8 MW).

Coal Association Called To Control Miners

The Indonesian Coal Mining Association (ICMA) is called to expand its membership further in view of controlling the conduct of miners in the national coal sector. This was stated by Mr. Bambang Setiawan, Director General for Mineral, Coal and Geothermal from the Ministry for Energy and Mineral Resources, in a speech during an inaugural ceremony of the newly elected Chairman of ICMA for the period of 2009 - 2013, Mr. Bob Kamandanu, in Jakarta, on 1 April 2009.

ICMA should presently embrace all levels of coal miners in the industry in its membership to ensure that the conduct of miners be conformed to existing laws and regulations, in order to create a more conducive climate for investment and business, Mr. Setiawan was quoted as saying.

After the new mining law No. 4 of 2009 entered into force, a transition from a mining authorization regime into a mining permit one has become obligatory in the national mining sector. The association’s role to ensure that all miners be in compliance to the directive is highly anticipated. State income from the permit regime has by far prevail over that from the previously applied contract regime.

In his speech, the newly elected ICMA Chairman admitted that the membership of the association has up to recently been only comprised of big names in the coal mining sector. He expected that in the future it would also contain thousands of small and medium scale enterprises doing business in the country’s coal mining sector. Mr. Kamandanu also stated that during his chairmanship, he would continue to strive on with developing the positive image of mining in Indonesia.
He would also push for good mining practices, environmental protection and promotion of CSR.

The functionaries of ICMa for the period of 2009 – 2013:
Chairman: Bob Kamandanu
Executive Director: Supriatna Suhala
Treasurer: H.Kirtiadi
Deputy for Organization & Good Mining Practice: Irawan Indrarta Poerwo
Deputy for CSR and Environment: Tri Harjono
Deputy for Coal Technology & Investment Opportunity: Kaz Tanaka
Deputy for Regulations and Legal Authorizations: Abdul Latief Baky
Deputy for Governmental Relations: Herman Kasih
Deputy for International Relations & Commercial: Andre Mamuaya
Deputy for Public Relations: Herman Heru Suprobo

Indonesia's Coal Export Drop 4 MT

During the first half of 2009, Indonesia's coal export realization was estimated to be 4 MT lower than the same period last year. The above was mentioned by Bob Kamandanu, the Chairman of Indonesian Coal Mining Association (ICMA), during a blood drive event in the Ministry of Energy and Mineral Resources Office, on 19 August 2009.

Kamandanu claimed that the decline has nothing to do with the performance of coal mining sector. Indonesia's coal export decline was driven mostly by the impact of global crisis, which has weakened the demand for coal by importers in the last six month. Nevertheless, he expected that the export volume would increase until the year end, following the stronger market demand.

"The export value decline was due to the crisis that caused them (buyers) to use their right to cut 10% of the export quota set in the contract. Later on, they could pick it up again," he said.

"Usually, buyers are given with the privilege to reduce up to 10% of the purchase stated in the contract," Kamandanu further explained.

Although the export quota was declining, the domestic consumption of coal has increased 5 MT during the same period. It would mean that the overall sales of coal have indicated a positive progress, indeed.

Kamandanu also estimated that the total sum of exports and domestic sales could reach 260 MT by the end of this year.

Arutmin To Provide 10 MT Of Coal For 10,000 MW Project

PT Arutmin Indonesia has recently been increasing its production capacity, and preparing for 3 new coal ports. Faisal Firdaus, CEO of Arutmin, said that the efforts were to support the coal supplies for the Phase I of 10,000 MW Electricity Generation Program.

"We will increase production up to 30 MT per year, and one third of the amount is allocated to supply coal for the 10,000 MW project. For the shipping, we are building 3 new coal ports. One of the ports is now ready," Firdaus told TAMBANG Magazine, on 19 August 2009.

Under the license of Coal Mining Contract of Work Generation I (1981), PT Arutmin Indonesia has conducted coal exploitation on 5 different working areas in South Kalimantan, i.e. Senakin and North Pulau Laut Coal Terminal (Kota Baru), Satui and Batu Licin (Tanah Bumbu), and also Asam-Asam (Tanah Laut).

Additionally, Arutmin has been working on expansion programs for 3 new coal ports. Two of the ports are located in Kimpat (Tanah Laut) and Satui (Tanah Bumbu). The other one, located in Asam-Asam (Tanah Laut), has been completed and tested for trials. The 3 new coal ports were built to anticipate the production capacity increase.

Firdaus explained that currently the domestic market would not be able to tap the additional production from Arutmin, because the Phase I of 10,000 MW Project has been going in a very slow pace. "But, in a year or two, we have the commitment for that," he concluded.

Bayan Starts Production At World's Largest Clean Coal Facility

PT Bayan Resources, Tbk. announced that their joint venture company PT Kaltim Supacoal (KSC) has started producing upgraded clean coal briquettes at KSC’s 1 million tons per annum Binderless Coal Briquetting plant (BCB Plant) in Tabang, Indonesia.

According to a press release, sent to Majalah TAMBANG on 25 August 2009, the commissioning process has been completed the day before. As scheduled, the plant operators ran all components of the BCB Plant under temporary conditions, from the raw coal feeder breaker, to the drying column, to multiple briquetting units, and finally to the product out-loading bin. With all process operated to specification, the BCB plant has successfully produced its first run of upgraded coal.

With the completion of the commissioning process, PT Kaltim Supacoal would now move to the next phase of operating the BCB plant under temporary power on a continuous 24 hours basis for a number of days.

The commissioning process has actually been conducted for the last couple of months, involving a simultaneous commissioning of the BCB Plant and a 10 MW coal-fired Power Station.

For the coal-fired power station, the commissioning process has almost completed. Final integration with the BCB Plant was expected to be ready in the next few weeks.

At that point, the coal upgrading facility would be able to run at enhanced levels allowing for ramp up to full production. Bayan was optimistic that the optimum production capacity could be reached over the next few months.