Adaro Energy Annual Report 2009 193 www.adaro.com
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 555
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008
Expressed in million Rupiah, unless otherwise stated
38. SEGMENT REPORTING continued 2008
Coal mining and
Mining trading
service Others
Eliminations Consolidated
Profitloss before income tax 3,648,810
471,599 4,509
257,016 2,924,704
Income tax expensebenefit 1,624,907
11,075 38,694
50,550 1,601,976
Extraordinary Item 372,741
- -
- 372,741
Pre-acquisition income
- -
- 126,390
126,390 Minority interest in net loss of
subsidiaries -
- -
63,601 63,601
Net incomeloss 1,651,162
460,524 34,185
269,255 887,198
Segment assets 16,716,829
4,338,571 5,507,644
7,157,126 33,720,170
Segment liabilities 13,333,697
3,902,683 9,059,740
6,603,574 19,692,546
Capital expenditure 217,513
1,117,176 855,029
2,903 2,192,621
Depreciation and amortisation 66,003
292,060 43,678
557,379 959,120
Information concerning the Group’s geographical segment for the years ended 31 December 2009 and 2008 is as follows:
2009 Indonesia
Asia Europe
America Total
Revenue: Coal mining and trading
6,015,047 14,966,410
2,949,503 1,360,142
25,291,102 Mining services
1,167,642 -
- -
1,167,642 Others
379,165 100,111
- -
479,276 Revenue
7,561,854 15,066,521
2,949,503 1,360,142
26,938,020 Segment assets
37,795,344 4,670,064
- -
42,465,408 Capital expenditure
1,313,572 115,964
- -
1,429,536
2008 Indonesia
Asia Europe
America Total
Revenue: Coal mining and trading
3,878,805 9,034,706
2,754,709 1,129,136
16,797,356 Mining services
1,069,250 -
- -
1,069,250 Others
188,628 37,268
- -
225,896 Revenue
5,136,683 9,071,974
2,754,709 1,129,136
18,092,502 Segment assets
28,010,589 5,696,667
12,914 -
33,720,170 Capital expenditure
2,192,437 184
- -
2,192,621 39. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES
a. Coal mining, transportation, barging, transhipment, and other agreements
Adaro, as a coal producer, has entered into a number of coal mining agreements. Based on the agreements, Adaro is required to pay contractors a service fee, calculated on a monthly basis, based on a formula which includes the amount of raw
coal and overburden mined and transported. The contractors will provide all equipment, machinery, appliances and o ther supplies necessary for performing the mining and transportation services, and are required to meet certain minimum
production requirements.
In addition, Adaro has also entered into coal barging, transport and transhipment agreement with contractors t o provide coal transportation services from Adaro’s main area to certain port destinations. Adaro is required to pay contractors a service fee,
calculated on a monthly basis, based on a formula which includes the amount of coal transported.
194 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 ENERGY Tbk AND SUBSIDIARIES Schedule 556
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008
Expressed in million Rupiah, unless otherwise stated
39. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued a.
Coal mining, transportation, barging, transhipment, and other agreements continued
In addition, Adaro has also entered into a fuel supply agreement with PT Shell Indonesia “Shell”. Adaro is required to pay Shell a price, based on a formula which includes the amount of fuel supplied and the market price of fuel. Adaro is also
required to purchase a certain minimum yearly volume of fuel.
Contractor Agreement type
Agreement date Contract period end
PT Pamapersada Nusantara Coal mining and transportation
7 September 2009 31 July 2013
PT Bukit Makmur Mandiri Utama Coal mining and transportation
13 November 2008 31 December 2013
PT Rahman Abdijaya Coal mining and transportation
14 December 2008 31 December 2013
PT Rante Mutiara Insani Coal mining and transportation
22 February 2010 22 February 2015
PT Pulau Seroja Jaya and PT Pulau Seroja Jaya Pratama
Coal barging 30 November 2007
31 December 2010 PT Batuah Abadi Lines
Coal barging 18 February 2000
30 June 2012 PT Shell Indonesia
Fuel supply 8 December 2009
1 October 2022 SIS provides mining contractor services to various coal producers. Under the agreements, SIS provides labour, equipment
and material for overburden removal, coal mining and coal and overburden hauling, and is required to meet certain minimum production requirements for these activities. SIS receives a service fee calculated on a monthly basis, based on a formula
which includes several adjustment clauses.
Coal producer Agreement date
Contract period or production level metric tonnesMT
PT Berau Coal Binungan H3N 22 November 2004
31 December 2010 PT Berau Coal Binungan H4
27 December 2004 31 December 2010
PT Berau Coal Binungan Blok 1-4 1 March 2007
31 December 2010 PT Berau Coal Sambarata
25 February 2004 31 December 2011
PT Berau Coal Sambarata Blok B-1 21 January 2008
14 July 2012 PT Sumber Kurnia Buana
10 May 2005 9 May 2010 or
certain production level PT Borneo Indobara
17 October 2006 31 August 2014 or
certain production level PT Indomining
14 August 2007 13 August 2012 or
certain production level PT Tunas Muda Jaya
8 April 2009 2013
or certain production level The receivables arising from coal mining contract between SIS and the coal producers were pledged under the Senior Credit
Facility refer to Note 21b. All of these agreements are pledged against the Senior Credit Facility refer to Note 21b.
b. Land-Use Cooperation Agreement
On 4 November 2009, MSW and the Government of Tabalong Regency entered into a land-use cooperation agreement for the cooperation to use 100.2 hectares of land from the Government of Tabalong Regency, located in Mabu’un village, Murung
Pudak Sub-District, Tabalong Regency, in relation to the construction and operation of “Pembangkit Listrik Tenaga Uap” “Coal fired Power Plant” or “PLTU”. The Government of Tabalong Regency will provide the right to use the land, which
subsequently could request to have the land rights for 30 years and this could be extended according to the prevailing law.
As a compensation for land rights, MSW will supply electricity of 1.5 Mega Watts for regency street lighting.
c. Litigation
Dianlia was involved in litigation with Beckkett Pte Ltd “Beckkett” relating to a foreclosure sale of 40 of the shares in Adaro and IBT the “Pledged Shares” by Deutsche Bank AG, Singapore branch “Deutsche Bank” to Dianlia in 2002 following a
default on a loan to a subsidiary of Beckkett in 1998. Beckkett filed a litigation against Deutsche Bank in Singapore for damages alleging, among other things, that Deutsche Bank
failed to obtain the best price for the Pledged Shares according to the foreclosure sale the Suit. In early 2005, Beckkett applied to the Singapore High Court to add Dianlia as an additional defendant to the Suit and sought restoration of the
Pledged Shares or damages if the foreclosure sale was validated.