Transportation Mt Adaro Energy 2009 Annual Report English

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