PRODUCTION INFRASTRUCTURES AND FACILITIES
loading facilities at Abidin Port, while the coal from Sebamban block is transported to the Bunati Port. Abidin Port
and Bunati Port respectively has an approximate capacity of 2 million tons per year and 2.5 million ton per year. Each port
has a processing facility for coal crushing and screening. In both ports, the coal is crushed to size 50 mm before
stockpiled and then loaded onto a barge with a capacity up to 8,000 tons. The process of barge loading generally takes more
or less 5 five hours. The coal obtained from BIB mining operations is usually shipped directly to end users in
Indonesia or to offshore transhipment point. Abidin Port is a port owned and operated by a third party,
while Bunati Port is a port owned by BIB and operated by a third party.
The Company currently plans to develop the capacity of Bunati Port. This development is planned for completion by mid to
late 2011. This expansion is expected to increase the loading capacity up to nearly double with the target of loading
capacity is up to 4.5 million tons of coal per year. In contrast to the BIB, the majority of coal production of KIM
is currently transported by trucks with capacity of 30 tons over
public roads
andor private
roads to
end users
which are related parties of the Company. Only in about late 2010, KIM began transporting the coal to two ports locations
in Padang and in Jambi for the purpose to export the coal.
Each of this port has a capacity of 2.5 million tons per year with a loading capacity of 32,000 tons in a period of 5-6
days. Currently KIM has 2 ROM stockpiles and has now started the
construction of an additional ROM stockpile completed with conveyor facilities in an area of 6 to 8 hectares. Through the
coal quality management plan, the blending requirements of certain quality of coal are already identified before the coal
is transported to the coal stockpile area to be stockpiled at four different locations for four different types of coal
quality. The mining activities at TKS’ location will begin to be
actively conducted in the second quarter of 2011. The coal is planned to be transported by road along the 72 km, with
hauling capability to 150 tons of coal per day. Barge loading is planned to be performed by using Buntok Baru Port
facilities located on Barito River, South Kalimantan. This port is capable to accommodate up to 25,000 tons of coal.