24.3 42.2 38.5 40.6 Adaro Energy 2012 Annual Report English
74
DELIvERINg POsITIvE ENERgY
Our Tower of Overburden
Overburden is the rock and soil overlying coal
deposits, and it must be scraped off and
hauled away before the seam can be mined.
In 2012 Adaro stripped a massive 331 million
cubic meters of rock 10 percent more than
in 2011. To imagine what that amount of
rock looks like, imagine a tower with the base
of a soccer pitch stretching a massive
66.2 kilometers into the sky, through
the stratosphere and almost to the
edge of space.
8.8km Height of
Mt Everest
18km Start of the stratosphere
near the Equator 50km
Edge of the stratosphere
11km Altitude of cruising
long-distance airliner
O UR
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ADARO ENERgY 2012 ANNUAL REPORT
75
Coal Mining
We produced 47.2 million tonnes of coal in 2012, making it the second best production year in our two-
decade history after 2011 and allowing AI to maintain its uninterrupted growth in coal sales with 47.41
million tonnes, an increase from 47.17 million tonnes in 2011. AI’s contractors performed at a high level
with daily average coal mining of 131,920 tonnes per day from three pits located at the same concession.
Tutupan remained our main production mine. It has grown larger: it is now 14.5km long and an
average 2.56km in width, and 4.5km wide and 240 meters deep at its widest point in the southern
part of the mine. We produced 38.62 million tonnes from our Tutupan pit, 6 less than 2011, as some
of our customers did not invoke their option to buy additional coal at the contracted price. For similar
reasons, production from the Paringin pit also decreased, by 7 to 0.94 million tonnes. However,
production from Wara, our new pit opened in 2009 that lies 5km east of Tutupan, increased by 42
to 7.63 million tonnes due to strong demand for low caloriic value coal, even though there is more
competition for this kind of coal.
Overburden Stripping
Amid market volatility and as part of our long-term mine planning, we kept our target for overburden
removal ixed throughout 2012 despite lowering our production target, and we achieved a record 331.48
million bank cubic meters Mbcm of overburden stripped, exceeding our target of 321.15 Mbcm.
Average daily overburden stripping was 930,140 bcm.
AI’s actual average stripping ratio of 7.0x was higher than the planned average stripping ratio of
6.4x. This major increase in stripping volume was due to a mix of factors, including continued improvement
to the mine haul road infrastructure and an ongoing increase in the numbers of higher-capacity mining
equipment. Dry weather was also a factor.
We began purchasing larger-sized equipment in 2011 to maximize productivity, improve eficiency
and minimize accident risk. We purchased several 200-tonne class and 150-tonne class Komatsu and
Caterpillar trucks during the year, which brought total investment to Us129 million for 2012. Our
contractors also added nine units of the larger-face shovels with bucket capacities of up to 24 cubic
meters, resulting in total heavy equipment leet being operated by our contractors of 1,195 units at the
end of 2012. With this investment, AEs current leet provides us with adequate capacity to achieve our
production targets for 2013. As part of our eficiency and cost reduction initiatives, we continued improving
road conditions around the pit, reducing our average coal hauling cycle time. We also saw savings from
our requirement that contractors reduce their fuel usage by 2 each year.
Rainfall and Pit Dewatering
We had 2,620mm of rainfall and 184 rain days during the year, which was slightly below the ive-year
average of 3,054.4mm. However, December’s rainfall of 545 mm was the highest single-month total in our
ten years of recording, up from the previous record of 536mm, set in March 2010. Total rain days over the
year numbered 184, slightly above the 5-year average of 182.8 days.
The dry season lasted well into the fourth quarter, which allowed high rates of overburden
removal to be maintained, increasing the volume of exposed coal ready for excavation and leaving us
in a strong position to meet coal production targets during the end-of-year wet season. AI’s mining
Adaro Indonesia 5-Year Highlights
2008 2009
2010 2011
2012 Key Financial Highlights US million
Total assets 1,278.9
2,303.4 1,885.0
2,699.6 2,927.4
Total liabilities 1,023.0
1,844.1 1,648.6
2,312.1 2,508.3
Interest-bearing debt
514.1 1,204.3
1,141.3 1,629.7
1,806.9 Total equity
255.8 459.3
236.4 387.5
419.1 Revenue
1,617.8 2,406.9
2,412.0 3,386.2
3,343.1
Operating Statistics
Coal production Mt 38.5
40.6 42.2
47.7 47.2
Coal sales Mt 39.8
41.1 42.5
47.2 47.4
Overburden stripping Mbcm
159.31 208.5
225.9 299.3
331.5 Average planned strip ratio x
4.25 5.0
5.5 5.9
6.4
Who Does What
Our contractor breakdown for coal mining and hauling left chart and for overburden excavating and disposal right chart.
36
PAMA
16
BUMA
11
RA
6
RA
2
RMI
2
RMI
16
BUMA
40
PAMA
34
SIS
36
SIS
Adaro Indonesia Operations 2012
Millions of tonnes unless specified
FY12 FY11
Change Coal Production
Total 47.19