7/31/2019 Fred Murrell PT Adaro Envirocoal Americas
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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
7/31/2019 Fred Murrell PT Adaro Envirocoal Americas
2/19
2nd Annual Petcoke Conference
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
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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.
2nd Annual Petcoke Conference
A Few Observations
7/31/2019 Fred Murrell PT Adaro Envirocoal Americas
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Indonesian Coal
2nd Annual Petcoke Conference
7/31/2019 Fred Murrell PT Adaro Envirocoal Americas
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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
2nd Annual Petcoke Conference
7/31/2019 Fred Murrell PT Adaro Envirocoal Americas
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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)
2nd Annual Petcoke Conference
7/31/2019 Fred Murrell PT Adaro Envirocoal Americas
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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
2nd Annual Petcoke Conference
7/31/2019 Fred Murrell PT Adaro Envirocoal Americas
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Coal Quality
Adaros sub-bituminous grade C Wara and Warukindeposits contains more than one billion tonnes of low ash,
low sulphur coal
2nd Annual Petcoke Conference
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Company Operations
2nd Annual Petcoke Conference
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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
2nd Annual Petcoke Conference
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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
2nd Annual Petcoke Conference
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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
2nd Annual Petcoke Conference
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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
2nd Annual Petcoke Conference
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Efficient Ship Loading
2nd Annual Petcoke Conference
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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
2nd Annual Petcoke Conference
7/31/2019 Fred Murrell PT Adaro Envirocoal Americas
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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
2nd Annual Petcoke Conference
7/31/2019 Fred Murrell PT Adaro Envirocoal Americas
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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
2nd Annual Petcoke Conference
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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
2nd Annual Petcoke Conference
7/31/2019 Fred Murrell PT Adaro Envirocoal Americas
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
2nd Annual Petcoke Conference
The Indonesian Experience