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Mining Assets

Mining Assets: Building Organic Growth


Giant dump trucks lined up in readiness for despatch to their next load at the Tutupan pit. Orderliness and precision are equally critical in Adaro Indonesia’s physical mining operations.

Adaro Indonesia: Our Core Mining Asset

 

PT Adaro Indonesia is Adaro Energy’s core operating subsidiary. We began commercial operations mining and producing our trademark Envirocoal in 1992 from our 358km2 concession at Tabalong in South Kalimantan under a first-generation Coal Cooperation Agreement (CCA) with the Government of Indonesia. In 2015, we produced 50.4 million tonnes of Envirocoal from three pits: Tutupan, Wara and Paringin. We have total resources of 4.9 billion tonnes in this concession, including 873 million tonnes of reserves (reported in accordance with the JORC Code 2012).

Over the past 24 years, we have become known for our consistent coal quality, reliability and dependability. Our trademark Envirocoal, with its low-pollutant characteristics, has earned the reputation of being among the best environment-friendly solid fuel available. Our customers also benefit from top-class service, with our combustion engineers visiting them to provide technical advice on using Envirocoal.

 

Our Other Mining Assets

 

With a focus on creating maximum sustainable value from Indonesian coal and creating returns for shareholders, Adaro has since 2010 invested approximately US$955 million, including capital expenditure, to acquire 16 coal concessions in Kalimantan and South Sumatra.

Our strategy to invest in large, greenfield, low-cost, and expandable assets that will diversify our products, license maturities and locations has created a solid platform in the coal-mining segment of our business. At the same time, these assets support our mining services, logistics and power segments, further strengthening our vertically integrated coal supply chain.

At the same time, these assets support our mining services, logistics and power segments, further strengthening our vertically integrated coal supply chain.

While we look at all opportunities available, we prefer to acquire undeveloped deposits rather than mines, as the former allows us to take advantage of our specialized knowledge and experience on how to take a deposit and turn it into a profitable, long-term asset. The assets we acquired play to our strength as an expert on inland, low-rank Indonesian coal.

Last modified on February 28, 2017, 12:32 pm | 7047