Production

The production total as per 31 December 2017

 

BENGALON COAL PROJECT

Location: East Kalimantan

Client : PT Kaltim Prima Coal

Contract value for this Bengalon project amounted to USD 2.65 billion and was one of the highest contract value obtained by the Company so far. In 2017, the performance of Bengalon Project decreased compared to the same period of the previous year. Overburden production decreased by 4.67% to 52.51 million bcm compared to the same period in the previous year, while coal production fell 18.30% to 6.73 million tons. The decline in coal production of Bengalon Project was owed to the decreasing number of operating fleet, as some of the fleet was undergoing repair according to the schedule.This step was taken to prepare for a significant increase in production capacity by 2018. The heavy rainfall in Bengalon Project also became an obstacle for the ompany to achieve overburden and coal production target. In addition, the Company then optimized its operating fleet by operating only productive and profitable fleet in order to maintain profitability of Bengalon Project.

Bengalon Project Performance

ASAM ASAM COAL PROJECT

Location: South Kalimantan

Client: PT Arutmin Indonesia

Contract value for Asam Asam project reached USD 2.1 billion, the second highest amount out of three mining contracts obtained by the Company. In 2017, the Company managed to significantly increase both coal production and overburden removal volume (including top soil removal) in Asam Asam Project location. The Company’s performance in Asam Asam Project demonstrated a continuous increase. In 2015, overburden removal volume significantly rose by 93.7% from 2014, followed by an increase of 41.56% to 21.68 million Bcm in 2017, which then rose by 4.3% to 22.62 million Bcm. However, coal production of this project was fluctuating. After recording an increase from 3.50 million tons to 4.40 million tons in 2015, it continued to rise to 5.31 million tons in 2016 before declined in 2017. In 2017, coal production of Asam Asam project decreased by 7.90% or 410 thousand tons to 4.90 million tons. The decrease in coal production in Asam Asam Project was a result of the implementation of equipment maintenance program that did not realize in the previous years. Operationally, the Company also optimized the operating fleet composition by operating only productive and profitable fleet in order to maintain profitability of Asam Asam Project. In 2017, there was high rain intensity in Asam Asam Project which disrupted the Company’s production.

Asam Asam Project Performance

SATUI MULIA COAL PROJECT

Location: South Kalimantan

Client: PT Arutmin Indonesia

Contract value for Satui project amounted to USD 1.7 billion, the third highest contract value out of the three mining deals obtained by the Company. In 2017, Satui Project generated 10.66 million of Bcm, which decreased by 41.7% compared to the same period in the previous yearwhich amounted to 18.27 million Bcm. Meanwhile, coal production reached 1.14 million tons, declined by 25.1% from 1.52 million tons in 2016. This target was not accomplished primarily because the Company could not meet the needs for the availability of production fleet as planned. The Company sets the target of fulfilling the needs for production and supporting equipment by 2018 in order to significantly increase production volume to meet the improving market demand, in line with coal price hike. Another cause was high rainfall intensity in Satui Project, which provided an obstacle for the Company to achieve its overburden and coal production target.

Satui Coal Project Performance