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Reported according to JORC 2012 Edition
Calculated as at Dec. 31, 2013 Calculated changes to coal reserves quality 2014 vs 2013
Total moisture
Ash Volatile
matter Total
sulphur Caloriic value
Kcalkg Total
moisture Ash
Volatile matter
Total sulphur
Caloriic value Kcalkg
26.7 1.8
36.7 0.10
5,016 0.1
- -
0.01 4
25.7 3.1
35.7 0.17
5,065 0.7
-0.7 -0.4
0.04 -9
No reserves estimated in 2013 No reserves estimated in 201314
39.0 2.6
30.6 0.21
4,012 -
- -0.1
- -9
No reserves estimated in 2013 No reserves estimated in 201314
31.2 2.1
34.4 0.15
4,648 -
- -
- 9
Pending JoRC Reserve Study NA
NA NA
NA NA
NA NA
NA NA
NA No reserves estimated in 2013
31.2 2.1
34.4 0.15
4,648 0.1
0.1 -0.1
- -14
No reserves estimated in 2013 No reserves estimated in 201314
No reserves estimated in 2013 No reserves estimated in 201314
34.1 5.7
31.1 0.4
4,292 -
- -
- No reserves estimated in 2013
No reserves estimated in 201314
34.1 5.7
31.1 0.4
4,292 -
- -
-
Reported according to JORC 2012 Edition
Calculated as at Dec. 31, 2013 Calculated changes to coal reserves quality 2014 vs 2013
Inherent moisture
Ash Volatile
matter Total
sulphur Caloriic value
Kcalkg Inherent
moisture Ash
Volatile matter
Total sulphur
Caloriic value Kcalkg
18.0 2.0
41.0 0.11
5,610 -0.1
- -
- 7
17.3 3.4
39.8 0.19
5,638 0.9
-0.8 -0.6
0.05 -25
No reserves estimated in 2013 No reserves estimated in 201314
20.0 3.4
40.0 0.27
5,241 -
- -
0.01 -5
No reserves estimated in 2013 No reserves estimated in 201314
18.7 2.6
40.6 0.18
5,475 -
- -0.1
- 5
No reserves estimated in 2013 NA
NA NA
NA NA
NA NA
NA NA
NA No reserves estimated in 2013
18.7 2.6
40.6 0.18
5,475 0.4
- -0.3
- -45
No reserves estimated in 2013 No reserves estimated in 201314
No reserves estimated in 2013 No reserves estimated in 201314
21.1 6.8
37.2 0.48
5,132 -
- -
- -
No reserves estimated in 2013 No reserves estimated in 201314
21.1 6.8
37.2 0.48
5,132 -
- -
- -
1 PT Adaro Indonesia’s coal quality samples have been analysed to ASTM standards.
2 Balangan Coal is an informal collective name for the three separate IuPs PT
Semesta Centramas, PT Paramitha Cipta Sarana and PT laskar Semesta
Alam. Coal quality samples from each have been analysed to ASTM
standards. 3 PT Mustika Indah Permai’s coal quality
samples have been analysed to ISo standards. Elevated levels of sodium in ash
averaging 3 were noted in the 2014 JoRC coal reserves. No additional data in 2014.
Notes
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OuR busiNEss REviEw Of lOGisTics
From Kelanis, PT Maritim Barito Perkasa MBP, our barging and ship-loading subsidiary,
carries the coal on barges to three possible des- tinations: to the Taboneo anchorage through
the working area of PT Indonesia Multi Purpose Terminal IMPT, where transshipment takes
place for a signiicant portion of our coal to the land-based terminal operated by PT Indonesia
Bulk Terminal IBT at South Pulau Laut, or di- rectly to Adaro’s domestic customers.
As the coal passes through the mouth of the Barito River, it enters the channel that PT Sarana
Daya Mandiri SDM maintains through regu- lar dredging.
At Taboneo, coal transshipment activities are assisted by PT Puradika Bongkar Muat Makmur
PBMM, as the stevedoring company, and MBP provides transshipment services in the working
area of IMPT, which functions as the Taboneo Port Operator.
AL’s vision is to become a reliable, eicient and best-managed Indonesian logistics com-
pany. It aims to ensure high-quality health and safety standards with environmental best prac-
tices to enhance the businesses that in return beneit stakeholders and communities. In 2014,
AL successfully implemented its management system within several business units and wit-
nessed improvements on operational reliability and eiciency.
AL has also completed two successful com- munity development projects aimed at improv-
ing the delivery of education to young children. It built new school facilities at two villages in
South Kalimantan, namely Tanipah and Desa Labat Muara.
A
mong the key challenges faced by Adaro in its early days were
transportation and logistics. AI has one of the furthest inland
coal mines in Indonesia. It is lo- cated 240km from the trans-
shipment location at Taboneo, and another 80km from the barge-loading port at Kelanis. When our
majority shareholders acquired AI in 2005, one of their irst priorities was to improve our coal
supply chain. Their experience with building PT Astra International Tbk provided them with an
appreciation of the importance of supply chain management and logistics, and the necessary
knowledge and expertise to develop it.
PT Adaro Logistics AL is tasked with coor- dinating and managing the logistics arm of our
coal supply chain. AL has integrated the activities of our logistics business units to enhance its val-
ue as an integrated port-to-port logistics service provider to Adaro. AL contributes signiicantly
to Adaro’s integrated coal supply chain, starting from loading coal on to barges at Kelanis to trans-
porting and delivering the coal at the discharg- ing points or ports.
Through synergized planning, AL strength- ens the business process from coal barging and
transshipment, to the operation of the land- based coal assembly and ship-loading terminal,
to port management for stevedoring and coal transshipment activities at Taboneo anchorage,
and lastly to managing the availability of the Barito River channel by dredging the channel
regularly. Dovetailing with our other business functions, AL promotes optimization and ei-
ciency in its operation.
From Pit to Port: Delivering the Goods
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From Kelanis, MBP carries the coal on barges to three possible destinations:
to the Taboneo anchorage, to the land- based terminal operated by IBT at
South Pulau laut or directly to Adaro’s domestic customers.
AI’s coal is loaded to barges by a series of conveyors at the Kelanis Dedicated Coal
Terminal. Kelanis has an annual capacity of 60Mt based on average operating conditions.
78
OuR busiNEss REviEw Of lOGisTics
As a coal-focused logistics provider, the out- look for AL is afected by the outlook for coal. At
Adaro, we believe that the long-term fundamen- tals for coal remain intact. We do, however, want
to improve our non-coal mining activities such as logistics, mining services and power.
Apart from the coal industry, the outlook for the logistics business in Indonesia is reassuring.
The government has made the maritime sector one of its priorities, and it plans to build more
ports and water tollways to connect the archi- pelago. Because of this, AL plans to increase its
strategic diversiication into non-coal bulk ma- terials as well as materials related to the oil and
gas industry. AL will take these strategic moves to reduce its dependence on the coal industry and
to open up new opportunities for future growth.
Furthermore, more barging and shiploading services will be required to transport coal to do-
mestic power plants in the next ive years, as the government plans to increase Indonesia’s coal-
ired power generation capacity by 20GW. AL has a number of subsidiaries involved in difer-
ent parts of the logistics business, and each sub- sidiary has its own competitive advantage.
MBP has invested in larger-size barges and a loating transfer unit FTU to improve its opera-
tional performance and reliability. IMPT and IBT provide port operations at Taboneo and Pulau
Laut, respectively.
The government’s plan to control coal exports by appointing dedicated ports also gives us a com-
petitive advantage, as we have been operating of shore and onshore coal ports for more than
two decades.
PT Maritim Barito Perkasa
MBP is a prime contractor in transporting Adaro’s coal from Kelanis to the Taboneo of-
shore anchorage and IBT at South Pulau Laut. In addition, MBP transports Adaro’s coal directly
to domestic customers. MBP also provides coal transportation services to third parties.
MBP’s fleet consists of 99 vessels — 32 of which were chartered from third-party vendors
— and four units of self-propelled barges and one
Coal on its journey down the Barito River to Taboneo anchorage. Our
subsidiary MBP is a major contractor in the barging process.
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MBP 5-year Highlights
2010 2011
2012 2013
2014
Key Financial Highlights uS million
Total assets 129.6
152.9 221.4
244.3 316.2
Total liabilities 139.2
139.8 170.6
153.0 176.2
Interest-bearing debt 0.1
