62 Adaro Energy Annual Report 2009
From Us to Y
ou
Running Adaro
Management Report
Owning Adaro
Governing Adaro
Financial Report
Contact Us Corporate Social
Responsibility Adaro in Summary
www.adaro.com
Orchard Maritime Logistics Pte. Ltd. “OML”, PT Maritim Barito Perkasa “MBP”, and PT Harapan Bahtera Internusa “HBI”-
OML is a Singapore-based coal barging and ship loading company that acquired the business of Orchard Maritime Services Pte. Ltd. in
2006. OML transports coal from the place of production to the port of delivery. Adaro, through OML, controls a portion of its barging and shiploading operations, which are essential parts of its coal supply chain.
Through this partial control, Adaro is in a better position to control demurrage costs through more eficient utilization of barges and transhipment cranes. MBP owns 16 barges, 18 tugboats, 1 accommodation barge
and supply boat, 3 self propelled barges and 4 loating cranes which work predominantly for Adaro in its barging and transhipment operations. Adaro Energy has restructured the majority of OML’s assets to
PT Maritim Barito Perkasa MBP and PT Harapan Bahtera Internusa HBI to comply with the cabotage law. When capacity is available, contracts are also undertaken for other Indonesian coal suppliers. As part
of the Company’s cost reduction initiatives, three self-propelled barges each with a 12,000 tonnes capacity were in operation in in 2009 and have the ability to travel twice as fast as barges pulled by tugboats.
Besides Adaro, which is OML’s largest customer, principal customers include PT Kideco Jaya Agung, PT Jawa Power and PT Semen Gresik. OML also serves a customer with the load ports in Cambodia and
Vietnam, for discharge in Singapore.
Barging: During 2009, Adaro’s coal accounted for 83 of OML’s 10.4 million tonnes of barging volume, an amount
equal to 24 of Adaro’s production volume.
Shiploading: During 2009, 99 out of OML’s 11.4 million tonnes of shiploading volume was Adaro’s coal. OML handled
51 of Adaro’s open anchorage volumes.
Barging 2006
2007 2008
2009 Key Financial Highlight in million Rupiah
Total Assets
1,275,941 1,609,213
1,663,011 1,778,874
Total Liabilities 1,181,904
1,465,529 1,482,237
1,529,685 Interest bearing debt
848,938 1,226,561
1,388,741 1,048
Total Equity 94,037
143,684 180,774
249,189 Revenue
213,485 443,340
657,579 670,220
Operating Statistics Transhipment Mt
5.23 9.40
10.60
11.41 Transportation Mt
2.67 6.77
9.50 10.37
Combined igures of OML, MBP and HBI. OML igures are translated using rate of Rp 9,400US for convenience purposes only.
Our Subsidiaries Described
Adaro pioneered the use of loating
cranes in Indonesia and now, by some
estimates there
are 60 loating cranes in operation
throughout Indonesia.
Fun Fact
Alan Yim, President Director Alan Yim had been with the Chuan Hup Group of companies, one of South East Asia’s largest barging
and offshore operations company since 1982. During his period with them he held a variety of positions rising to become Director and CEO of CH Logistics Pte Ltd in 2002, a post he retained until he left the
company in 2008. He holds a Chief Engineer’s certiicate. Joined in 2010
Adaro Energy Annual Report 2009 63
www.adaro.com
PT Sarana Daya Mandiri “SDM”
-
SDM was involved in the dredging of a wider and deeper Barito River channel as contractor to PT Ambang Barito Nusapersada, a local government-owned company
appointed to dredge and operate the enlarged river channel. The channel dredging project was completed in October 2008, which reduced barge trafic congestion due to low tides and sedimentation and increased
the handling capacity of the river from 60 million tonnes per year to an estimated 200 million tonnes per year, enabling barges to cross the channel 24 hours a day, 365 days a year. SDM retains the right to jointly
operate the channel and collect channel usage fees together with PT Ambang Barito Nusapersada until 2023.
Total transported volume through the Barito river channel in 2009 was 58.3 Mt. Almost all trafic that goes through the channel was coal with 63 of this being Adaro’s coal.
PT Sarana Daya Mandiri SDM 2008
2009 Key Financial Highlights in Rp ‘000
Total Assets
460,225,140 561,074,965
Total Liabilities 474,186,955
465,457,833 Interest Bearing Debt
433,768,699 469,606,635
Total Equity 13,961,815
95,617,132 Operating Statistics
Volume tonnage Mt 58.28
The sedimentation we dredged from
the Barito River delta in 2008 when
we dredged our new 15km channel,
would ill up a 1,200m tower 300
storey building with a base the size
of a football ield.
Fun Fact
Fakhrol Azmi Bin Harun, President Director Fakhrol Azmi Bin Harum holds a BA Hons in Accountancy from Northern University Malaysia and
prior to joining the Adaro Energy Group he held a number of senior management positions with Tenaga Nasional Berhad, Malaysia’s state power company both in Malaysia and Indonesia and with Insurance
companies in Malaysia. His last position with TNB before joining Adaro was as President Director of TNB’s coal operations in Indonesia. He is currently President Director of PT Sarana Daya Mandiri which
is managing the operations of the Barito River sea channel.
Our Subsidiaries Described
Ir Sonny Sidjaja, Operations Director Sonny Sidjaja has been the Operations Director of SDM since 2008 and was
responsible for managing the dredging project for the new Barito River sea channel and for its ongoing maintenance and management. Before joining SDM
in 2008 he held senior HR and production positions with AKR Corporindo, an internationally recognised Indonesian chemical manufacturer and with the holding
company for the Dharmala Group. He holds a mechanical engineering degree from Trisakti University, Jakarta.
64 Adaro Energy Annual Report 2009
From Us to Y
ou
Running Adaro
Management Report
Owning Adaro
Governing Adaro
Financial Report
Contact Us Corporate Social
Responsibility Adaro in Summary
www.adaro.com
PT Indonesia Bulk Terminal “IBT” -
IBT operates a coal terminal located on Pulau Laut, an island off South Kalimantan and 200 km from the Taboneo anchorage. Adaro and third-party coal producers
use IBT as a coal trans-shipment and coal blending hub for both domestic and international coal shipments through Kalimantan. IBT is also working with Shell to establish a fuel storage and distribution center at its
terminal which will become operational in 2010.
IBT’s port has a rated throughput of 12 Mt per annum with the capability to load vessels of up to 85,000 DWT. The terminal maintains eight stockpiles with a total capacity of 800,000 tonnes of coal and a stockpile
reclaiming system to provide accurate blending to meet end-users precise speciications. There are 4 cranes for inloading the coal at a rate of 750 tonnes per hour for each crane, while the shiploading capacity
is 3,000 tonnes per hour.
The fuel storage tanks being constructed have a capacity of 80,000 kiloliters. Other facilities being constructed as part of this fuel storage and distribution project include fuel tanker inloading and fuel barge
outloading systems.
PT Indonesia Bulk Terminal
2005 2006
2007 2008
2009 Key Financial Highlight in US
Total Assets 174,285,241
172,453,932 176,110,220
176,673,960 179,031,335
Total Liabilities 76,225,543
55,939,394 38,135,673
29,563,933 29,065,251
Interest Bearing Debt 26,074,326
38,245,923 30,165,353
1,871,045 1,934,905
Total Equity 98,059,698
116,514,538 137,974,547
147,110,029 149,966,084
Revenue 37,638,455
44,740,238 50,366,881
34,266,097 19,256,206
Operating Statistics Related Parties
6,293 8,952
10,719 6,270
3,254 Third Parties
1,373 733
1,246 1,803
1,382 Coal Tonnage Handled
in ‘000 tonnes 7,667
9,685 11,965
8,073 4,635
Vessels Loaded 120
146 185
125 72
Barry Jones, General Manager - Terminal Service Barry Jones joined Adaro in 1996 as head of maintenance at the Kelanis barge loading facility before
being promoted to Kelanis Superintendent,Coal processing and Shipping Division Head and inally General Manager of IBT. Prior to joining Adaro he had many years experience within the Australian coal
industry. He has a Diploma in Electrical Engineering, Graduate Certiicate in Maintenance Management and a Graduate Certiicate in Management.
Resigned in January 2010
Our Subsidiaries Described
Bram Surjadi, Marketing Manager Bram Surjadi is the Marketing Manager for IBT responsible for marketing the
terminal’s services to Southeast Kalimantan coal producers and to coal traders and endusers of coal, he was posted to IBT after joining Adaro’s marketing
department in 2006. Prior to this he was the commercial manager for a domestic coal trading operation and was business development manager for an industrial
company.
Adaro Energy Annual Report 2009 65
www.adaro.com
Edwin Tsang, Director Edwin Tsang is currently a Director of Coaltrade and joined the company in October 2006. Prior to
this he had 25 years of experience within the coal industry, irstly with China Light and Power as Fuel Supply Engineer in the 1980’s, then with the Sydney based mineral and energy consultancy irm,
Barlow Jonker, as a member of the coal consultancy team in the early 1990’s and inally as Managing Director of Total Energy Hong Kong. He holds a Bachelor of Science degree in mechanical engineering
from Hong Kong University and an MBA from the Chinese University of Hong Kong.
Coaltrade Services International Pte. Ltd. ”Coaltrade” -
In January 2009, Adaro and Coaltrade entered into a new contract, superceding an earlier one whereby Coaltrade would continue to
act as Adaro’s exclusive coal marketing agent for Adaro’s export sales in speciic countries and geographic areas. Under this new agreement, Coaltrade receives commissions from Adaro. Adaro’s marketing
arrangement with Coaltrade also provides access to international marketing networks and information regarding global and regional trends in coal production, supply, demand and pricing.
In addition to the services provided to Adaro, Coaltrade also trades third party coal and blends it with Adaro’s coal to achieve a higher sales price. Total third party coal sales by Coaltrade in 2009 amounted to
300,000 tonnes. Approximately 3 of Adaro Energy’s EBITDA comes from Coaltrade. The company is now adding more resources for third party coal trading, and it is expected that with the growth in Asia’s steam
coal trade, traded tonnages by Coaltrade will increase and add more revenue contribution to the Group in coming years.
Coaltrade Services International Pte. Ltd.
2005 2006
2007 2008
2009 Key Financial Highlight in US
Total Assets 62,272,428
57,221,905 244,427,695
231,541,248 228,265,709
Total Liabilities 35,957,793
32,811,586 226,178,428
185,814,397 175,172,110
Interest Bearing Debt -
- 200,000,000
157,654,590 144,690,590
Total Equity 26,314,635
24,410,319 18,249,267
45,726,851 53,093,599
Revenue 216,044,104
334,938,661 315,647,939
383,664,769 211,691,085
Operating Statistics Total Coal Sales
in ‘000 tonnes 6,441
10,095 9,325
7,957 3,344
• Adaro
6,187 5,617
7,479 6,995
3,000 • Third Parties
254 4,477
1,846 962
344
Our Subsidiaries Described
From Left to Right: Clement Woon, KO Lee, Edwin
Tsang, Zillah Tin, Rahayu, Wong Yoke Keng, Karen Ong.
66 Adaro Energy Annual Report 2009
From Us to Y
ou
Running Adaro
Management Report
Owning Adaro
Governing Adaro
Financial Report
Contact Us Corporate Social
Responsibility Adaro in Summary
www.adaro.com
PT Adaro Indonesia
2005 2006
2007 2008
2009 change
FY08 vs. FY09
Coal Sales Mt 26.09
34.46 36.58
39.8 41.08
3.2 Coal Production Mt
26.61 34.29
36.08 38.52
40.6
5.4 Overburden Stripping Mbcm
85.16 122.4
119.9 159.31
208.5 30.9
Average stripping ratio planned 3.3
3.57 4.25
4.25 5
17.6 Average stripping ratio actual
3.2 3.57
3.3 4.14
5.12 23.7