Fred Murrell PT Adaro Envirocoal Americas

7/31/2019 Fred Murrell PT Adaro Envirocoal Americas

1/19

USING COAL & PETCOKE

Presented by

Frederick J. Murrell

President

Adaro Envirocoal Americas

For

McCloskeys 2nd Annual Petcoke Conference

1920 July 2004

Houston Texas

2nd Annual Petcoke Conference

The Indonesian Experience


2/19


Indonesian coal has been blended on several occasionswith petroleum coke.

Adaros experience has been with cement producers andelectric power plants.

Adaro is comfortable that petcoke can be successfullyblended with high volatile matter, low sulfur coal.

A Few Observations


3/19

Local laws affecting petcoke use.

Local laws affecting coal use.

New fuel permit applications.

Blending restrictions.

Differences in hardness (HGI) of products. Different response to rainfall.


A Few Observations


4/19

Indonesian Coal



5/19

Major Mine Locations

KALIMANTAN

BRUNEISABAH

SARAWAK

THAILAND

MALAYSIA

SUMATRA

JAVA

SULAWESI

LOMBOKSUMBAWABALI

Jakarta

Medan

Pekan Baru

Jambi

Palembang

Padang

Bengkulu

Bandar Lampung

Pontianak

Balikpapan

Banjarmasin

Banda Aceh

Kuala Lumpur

Singapore

Denpasar

Makassar

Surabaya

Indian Ocean

South China Sea

Java Sea

Sulu Sea

Mentaw

aiStrait

MalaccaStrait

Karim

ataStrait

Mak

assa

rS

trait

AdaroKendilo

Arutmin

Jorong

Sebuku

KPCIndominco

Berau

Bukit Baiduri

Kideco

PTBA

Arutmin

Gunung Bayan

Tanito Harum

ABKMulti Harapan

PTBA

KALIMANTAN

BRUNEISABAH

SARAWAK

THAILAND

MALAYSIA

SUMATRA

JAVA

SULAWESI

LOMBOKSUMBAWABALI

Jakarta

Medan

Pekan Baru

Jambi

Palembang

Padang

Bengkulu

Bandar Lampung

Pontianak

Balikpapan

Banjarmasin

Banda Aceh

Kuala Lumpur

Singapore

Denpasar

Makassar

Surabaya

Indian Ocean

South China Sea

Java Sea

Sulu Sea

Mentaw

aiStrait

MalaccaStrait

Karim

ataStrait

Mak

assa

rS

trait

AdaroKendilo

Arutmin

Jorong

Sebuku

KPCIndominco

Berau

Bukit Baiduri

Kideco

PTBA

Arutmin

Gunung Bayan

Tanito Harum

ABKMulti Harapan

PTBA



6/19

Coal Quality

The coal industry has focused on the exploration andmining of bituminous and sub-bituminous coal with the

latter having sub-classifications which can be defined as :C Quality 4200-5000 kcal/kg(adb) 30-40% TM(ar)

B Quality 5000-5800 kcal/kg(adb) 20-30% TM(ar)

A Quality +5800 kcal/kg(adb) -25% TM(ar)



7/19

Coal Quality of Selected Companies

Adaro Kaltim Prima Bukit Asam Arutmin Kideco

Production(Mt 2003) 22.5 16.5 9.9 13.7 14.0

Coal Rank Sub-bit"A" Bit/Sub-bit "A" Sub-bit "B" Bit/Sub-bit "C" Sub-bit "B"

Kcal/kg (adb) 5800 6700/5900 5500 6500/4800 5500

Moisture (ar %) 24 12/17 23 9/35 22

Ash (adb %) 1 5/5 8 12/4 2

Volatile Matter (adb %) 40 39/40 38 40/38 42

Sulphur (adb %) 0.1 0.6/0.3 0.5 0.7/0.2 0.2

HGI 46 47/46 50 38/70 50



8/19

Coal Quality

Adaros sub-bituminous grade C Wara and Warukindeposits contains more than one billion tonnes of low ash,

low sulphur coal



9/19

Company Operations



10/19

Production By Company

Major Producers 2000 2001 2002 2003 2004 2005 2006

Adaro Indonesia 15.5 17.7 20.8 22.5 23.0 24.0 26.0

Kaltim Prima Coal 13.1 15.5 17.6 16.5 21.0 23.0 25.0

Kideco 8.1 10.4 11.5 14.0 15.0 15.5 16.0

Arutmin 7.8 9.6 10.6 13.7 15.0 16.0 16.0

Bukit Asam 10.7 10.2 9.5 9.9 10.3 11.0 11.0

Berau 4.9 6.7 7.1 7.6 8.0 8.5 9.0

Indominco Mandiri 3.7 4.4 5.3 6.5 6.8 7.0 7.0

Gunung Bayan 1.2 2.2 2.6 4.5 5.0 5.0 5.0

Jorong 1.2 2.6 2.3 3.0 3.0 3.5 4.0

Kitadin 1.3 1.7 1.9 3.0 3.0 3.5 4.0

Sub-Total 67.5 81.0 89.2 101.2 110.1 117.0 123.0

ForecastActual

Million Mt



11/19

Production By Company

Est

Small-Medium Producers 2000 2001 2002 2003 2004 2005 2006

Anugerah BK 0.0 1.0 1.7 2.7 2.8 3.0 3.0

Bukit Baiduri 2.0 2.0 2.0 2.5 3.0 3.0 3.0

Sebuku 1.5 2.0 2.1 2.0 2.2 2.0 2.0Tanito Harum 1.0 1.6 1.8 2.0 2.5 3.0 3.0

Multi Harapan 1.2 1.3 1.0 1.6 1.5 1.0 1.0

Lanna Harita 0.0 0.3 1.0 1.3 1.5 2.0 2.5

Antang Gunung Meratus 0.3 0.4 0.5 0.8 1.0 1.0 1.0

Tanjung Alam 0.3 0.7 0.7 0.8 1.0 1.5 2.0

Sumber Kurnia 0.0 0.0 0.8 0.8 1.0 1.0 1.0

Baramarta 0.0 0.0 0.6 0.8 1.0 1.0 1.0

Others 2.4 2.5 2.3 2.0 1.2 1.2 1.4

Coops, New Mines 2.5 2.5 5.0 5.3 7.8 11.5 14.0

Sub-Total 11.2 14.3 19.5 22.6 26.5 31.2 34.9

Actual Forecast

Million Mt



12/19

Production Summary

Summary 2000 2001 2002 2003 2004 2005 2006

Major Producers 67.5 81.0 89.2 101.2 110.1 117.0 123.0

Small-Medium Producers 11.2 14.3 19.5 22.6 26.5 31.2 34.9

Total Production 78.7 95.3 108.7 123.8 136.6 148.2 157.9

Production Growth 2.6 16.6 13.4 15.1 12.8 11.6 9.7

ForecastActual

Million Metric Tonnes



13/19

Infrastructure

Max Actual Future

vessel capacity capacity

Operator Region and port Operational size 2003 2006DWT Mt/yr Mt/yr

Coal loading ports and capacities

Kalimantan

Kaltim Prima Tanjung Bara 1991 dedicated 180,000 20.0 20.0

Kideco Jaya Agung Tanah Merah 1993 dedicated 20,000 12.0 12.0

Arutmin North Pulau Laut 1994 dedicated 150,000 10.0 12.0

Dermaga Prakarsa Pratama Balikpapan 1995 common user 65,000 3.0 5.0

Indonesia Bulk Terminal South Pulau Laut 1997 common user - phase I 90,000 10.0 10.0

2005 common user - phase II 200,000 12.0

Indominco Mandiri Bontang 1999 dedicated 65,000 6.0 6.0

Sumatra

PTBA Tarahan 1989 dedicated 65,000 10.0 15.0

PTBA Teluk Bayur 1991 common user 40,000 2.0 3.0General Port Pulau Baii 1990 20,000 1.0 3.0

Additional ship loading capacity

Self-loading vessels and Offshore/River Various Geared 40.0 40.0

direct barging 65,000

Adaro Indonesia Floating Cranes South Kalimantan 3 cranes Unlimited 10.0 15.0

Kideco Floating Cranes East Kalimantan 2 cranes Unlimited 3.0 5.0

Berau Coal, Floating Platform East Kalimantan 2000 Panamax 5.0 5.0

Total capacity 132.0 163.0



14/19

Efficient Ship Loading



15/19

In 2003, Indonesia produced 123 million mt and exportedjust over 90 million mt.

Second largest exporter of thermal coal. Nearly 80% of production is ranked as sub-bituminous A

and B coals with low ash, low sulphur and low nitrogen.

Some movement to lower rank coals for domestic use.

Coal Supply- Overview



16/19

Coal prices have increased rapidly during 2004.

Indonesian coal is generally sold at lower prices despiteglobal supply shortages and reputation as a reliable supplier.

Indonesian sub-bituminous coal is used in Asia, Europe and

the Americas for its environmental and economic benefits.

Coal Supply- Pricing



17/19

Domestic consumption grew from 22.3 million mt in 2000 to31.4 million mt in 2003 but will not increase substantiallyuntil after 2006.

Between 2006 and 2020 an additional 50 million mt per yearof new coal supply will be required to meet a forecasted15,000 MW of new power generating demand that will be

required to support industrial growth in Java & Bali.

Domestic Coal In Indonesia



18/19

Exports and Domestic Sales

(1) (2)

2000 2001 2002 2003 2004

Indonesian Supply to Asia 47.1 54.8 61.0 76.0 83.8

Indonesian Supply to Europe 8.5 9.6 10.3 10.5 10.5

Indonesian Supply to USA 2.2 2.4 3.3 3.6 5.0

Indonesian Exports 57.8 66.8 74.6 90.1 99.3

Indonesia Domestic Supply 22.3 25.3 29.0 31.4 32.2

Total Indonesian Sales 80.1 92.1 103.6 121.5 131.5

(1) ESTIMATE (2) FORECAST



19/19

USING COAL & PETCOKE

Presented by

Frederick J. Murrell

President

Adaro Envirocoal Americas

For

McCloskeys 2nd Annual Petcoke Conference

1920 July 2004

Houston Texas


The Indonesian Experience

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Fred Murrell PT Adaro Envirocoal Americas

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