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63
CTI 5-year Highlights
2010 2011
2012 2013
2014
Key Financial Highlights uS million
Total assets
168.2 207.4
151.1 139.6
89.6 Total liabilities
146.3 142.1
95.1 70.2
42.5 Interest-bearing debt
128.0 101.3
74.7 48.0
21.4 Total equity
22.0 65.3
55.9 69.4
47.1 Revenue
292.2 542.3
384.6 344.1
316.3
Operating Statistics
Total coal sales Mt
4.4 6.0
4.8 4.7
4.5
Coal from Adaro Mt 3.0
2.4 3.6
3.4 4.1
Coal from third parties Mt 1.4
3.6 1.2
1.3 0.4
age costs and reduce AI’s dependence on fuel, we decided in 2010 to commence the mechanization
of the mine with the installation of an OPCC sys- tem that will crush, transport and spread over-
burden to outlying dumping areas not practically accessible for overburden trucks.
Through an international tender process, we selected an international engineering company to
design and construct the system, which consists of two 7,000 tonnes per hour tph crushing sta-
tions and a 12,000tph, 7.7km transport convey- ing system, including a 2.4km movable convey-
or and mobile stacking and spreading conveyor.
Our subsidiary PT Makmur Sejahtera Wisesa MSW will power the OPCC from its 2x30MW
coal-ired mine-mouth power station. The use of coal-ired power will reduce diesel fuel con-
sumption and contribute to cost savings and ef- iciency. As of December 31, 2014, we have com-
pleted the physical construction of OPCC and are in the testing phase.
PT Adaro Mining Technology
We established Adaro Mining Technology AMT in 2011 to focus on the research and develop-
ment of coal upgrading techniques, coal gasii- cation and coal liquefaction. Our goal is to opti-
mize the use of coal reserves through develop- ments in technology.
Coaltrade Services International Pte ltd
Coaltrade Services International Pte Ltd CTI is the coal sales agency handling Adaro’s exports
to certain destination countries. CTI also trades coal from third parties and sells these to the ex-
port market. Its oices are based in Singapore. In 2014, CTI’s total sales declined by 5 to
4.5Mt. AI accounted for 90 of CTI’s volume at 4.1Mt, and third-party customers account-
ed for 10 of volume at 0.4Mt, a 65 decrease compared to 2013.
Coal Trading
For profiles of all of our key operating subsidiaries, including mission, management, results and operational summary, please
see www.adaro.comoperationour-operating-subsidiaries
64
OuR busiNEss REviEw Of miNiNG sERvicEs
In 2014, Adaro increased knowledge of its coal assets through continued coal exploration
accomplished through the completion of drill holes. For AI, 2014 was a year of “inill drilling” –
a time to focus on converting Inferred Resources to Indicated Resources and Indicated Resources
to Measured Resources by reducing the distance between drill holes. This inill drilling process
moves coal resource tonnage between catego- ries and increases the assurance of the existence
of the coal.
In 2014, AI drilled 48,520 meters over 366 drill holes in its coal exploration program. About
65 of these drill holes were cored, which means the key coal seams were core sampled and later
analyzed. Exploration activities focused on the North and South Tutupan pits.
A total of 1,967 individual coal samples from the exploration drilling were analyzed to en-
hance AI’s coal quality database, and 596 coal seam composites were created and tested.
AT PT Mustika Indah, a small number of geo- technical drill holes and cone penetrometer holes
were completed in aid of mining studies. For Adaro’s other properties, including PT
Mustika Indah, PT Semesta Centramas, PT Paramitha Cipta Sarana, PT Laskar Semesta
Alam, PT Bumi Kaliman Sejahtera, PT Bumi Murau Coal, PT Birawa Pandu Selaras, PT
Khazana Bumi Kaliman, PT Persada Multi Baraw, PT Telen Eco Coal, PT Tri Panuntun
Persada and PT Bukit Enim Energi, there was no speciic coal exploration drilling.
Adaro Eksplorasi Indonesia
AEI is engaged in geological and exploration work for AI and other subsidiaries.
In June 2014, the Australian Guidelines for the Estimation and Classiication of Coal Resources
2014 2014 Coal Guidelines were ratiied. The coal guidelines inluence how coal resources are
determined for use as a basis for the further esti- mation of coal reserves.
The 2014 Coal Guidelines are not part of the JORC code, and ultimately it is the Competent
Person CP who decides the applicability of the Coal Guidelines to parts of each deposit.
At AI, there is a long history of reconciliation of the tonnage of coal estimated each year against
the actual production. Good agreement between the tonnages estimated and those mined has con-
sistently proved that at Adaro the coal resource estimation procedures inluenced by the 2003
Coal guidelines are sound.
Currently, Adaro derives its coal resources with reference to the 2003 Coal Guidelines. The
coal resources are inputs to estimation of the proven and probable coal reserves subject to the
modifying factors. From 2015, Adaro will gradu- ally adopt the format of the 2015 Coal Guidelines
in the preparation of coal resources; any impact in terms of changes in tonnage is expected to
be small.
For AI, 2014 was a year of “inill drilling” – this process moves coal resource tonnage
between categories and increases the assurance of the existence of the coal.
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65
Adaro Equity Adjusted Consolidated Coal Reserves Reported According to JORC 2012 Edition
Group and Operating Company Reserves estimated as at Dec. 31, 2014
Reserves estimated as at Dec. 31, 2013 Estimated changes 2014 vs 2013
Total proved probable
Mt Proved Mt
Probable Mt Total proved
probable Mt
Proved Mt Probable
Mt Change to proved
probable total Mt change on proved
probable total
ADARO TOTAL COAL RESERVES
PT Adaro Indonesia, PT Semesta Centra Mas,
PT Parmitha Cipta Sarana,
4
PT Mustika Indah Permai
5
1,106 891
215 1,091
853 239
15 1
Adaro Equity Adjusted Consolidated Coal Resources Reported according to JORC 2012 Edition
Group and Operating Company Resources estimated as at Dec. 31, 2014
Resources estimated as at Dec. 31, 2013 Estimated changes
2014 vs. 2013 Total
measured, indicated
inferred Mt Measured
Mt Indicated
Mt Inferred
Mt Total
measured, indicated
inferred Mt Measured
Mt Indicated
Mt Inferred
Mt Measured,
indicated inferred
change Mt Measured,
indicated inferred
change
ADARO TOTAL SUB BITUMINOUS
1
PT Adaro Indonesia, PT Semesta Centramas,
PT Paramitha Cipta Sarana, PT laskar Semesta Alam,
PT Mustika Indah Permai 5,394
1,939 1,843
1,612 5,277
1,901 1,840
1,537 117
2
ADARO TOTAL METALLURGICAL
2
IndoMet Coal 318
21 46
251 318
21 54
243 -
- ADARO
TOTAL LOW RANK
3
PT Bhakti Energi Persada 7,161
3,480 2,885
797 7,161
3,480 2,885
797 -
- 1 Adaros coal resources refer to resources
generally suited to host open-pit mineable coal reserves unless noted otherwise. They
refer to JoRC 2012 Edition. Adaro’s coal resources and reserves as at december
31, 2014 use the JoRC Coal guidelines 2003 based on a history of successful post mining
reconciliation. Evaluation of the 2014 JoRC Coal guidelines will occur in 2015.
2 Based on BHP Billitons 2014 Annual Reports with permission. Some of IndoMets
coal resources are designated as resources which may host underground mining.
3 Based on Adaro exercising its option to increase its 10 equity share to 90.
4 The Competent Person for PT Adaro Indonesia PT Semesta Centra Mas
PT Paramitha Cipta Sarana coal reserves was Shahzad Chaudari MAusIMM CP, an
employee of PT Alam Tri Abadi
5 The Mustika Indah Permai coal reserves have not been re-estimated as at december
31, 2014, due to ongoing revisions to the regulated estimated price of mine-mouth
power-plant coal. A re-estimate will be preformed in 2015.
Notes
Coal Resources and Reserves Summary
66
OuR busiNEss REviEw Of miNiNG sERvicEs
Coal Resources by Quantity
Adaro Coal Resources
1
Operating Company Locality
Coal resources as estimated at Dec. 31, 2014 Total
measured, indicated
inferred Mt Measured
Mt Indicated
Mt Inferred Mt
Adaro ownership
equity Adaro
attributable total
measured, indicated
inferred Mt
PT Adaro Indonesia Tutupan
2,693 807
886 1,000
100 2,693
North Paringin 367
108 127
132 367
South Paringin 117
16 64
37 117
wara I 1,406
600 453
354 1,406
wara II 374
72 237
65 374
Total Adaro Indonesia 4,957
1,603 1,766
1,588 100
4,957
Balangan Coal
2
PT Semesta Centramas SCM 101
75 22
5 75
76 PT Paramitha Cipta Sarana PCS
51 36
14 1
75 38
PT laskar Semesta Alam lSA 144
59 58
27 75
108
Total South Kalimantan 5,253
1,773 1,860
1,620 99
5,179
PT Bhakti Energi
Persada
3
PT Bumi Kaliman Sejahtera 1,402
526 683
193
90 1,261
PT Bumi Murau Coal 1,817
858 808
151 1,635
PT Birawa Pandu Selaras 186
75 62
48 167
PT Khazana Bumi Kaliman 745
374 238
133 671
PT Persada Multi Bara 2,696
1,307 1,186
202 2,426
PT Telen Eco Coal 1,093
712 223
157 984
PT Tri Panuntun Persada 19
14 4
1 17
Total East Kalimantan 7,957
3,866 3,204
885 90
7,161
IndoMet Coal
4
Haju metallurgicalthermal 14
11 2
1
25 4
lampunut metallurgical 110
72 31
7 27
lampunut thermal 10
- -
10 3
luon metallurgicalthermal 80
- -
80 20
luon metallurgical underground
5
60 -
- 60
15 Bumbun metallurgicalthermal
187 -
82 105
47 Juloi Northwest metallurgicalthermal
810 -
70 740
203
Total Central Kalimantan 1,271
83 185
1003 25
318
PT Mustika Indah Permai
6
lahat 287.5
277.7 9.6
0.2 75
215.6 PT Bukit Enim Energi
Muara Enim No resources estimated in 2014
Total South Sumatra 287.5
277.7 9.6
0.2 75
215.6
TOTAl ADARO cOAl REsOuRcEs 14,768
5,999 5,258
3,508 87
12,874
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67
Reported according to JORC 2012 Edition
1
Coal resources as estimated at Dec. 31, 2013 Calculated changes to Adaros coal resources 2014 vs. 2013
Total measured,
indicated inferred Mt
Measured Mt
Indicated Mt
Inferred Mt Adaro
ownership equity
Adaro attributable
total measured, indicated
inferred Mt Changes to
operating company total
measured, indicated
inferred Mt Changes to
operating company total
measured, indicated
inferred Changes to Adaro
attributable total measured,
indicated inferred Mt
Changes to Adaro attributable
total measured, indicated
inferred
2,708 893
928 887
100 2,708
-15 -1
-15 -1
372 104
138 130
372 -5
-1 -5
-1 117
16 64
37 117
- -
- -
1,362 573
437 352
1,362 44
3 44
3 374
72 237
65 374
- -
- -
4,932 1,657
1,804 1,471
100 4,932
24 0.5
24
62 31
25 6
75 46
40 64
30 64
21 -
- 21
75 16
30 142
22 138
90 16
14 60
75 67
55 61
41 61
5,105 1,704
1,842 1,558
99 5,062
148 3
117 2
1,402 526
683 193
90 1,261
- -
- -
1,817 858
808 151
1,635 -
- -
- 186
75 62
48 167
- -
- -
745 374
238 133
671 -
- -
- 2,696
1,307 1,186
202 2,426
- -
- -
1,093 712
223 157
984 -
- -
- 19
14 4
1 17
- -
- -
7,957 3,866
3,204 885
90 7,161
- -
- -
14 11
2 1
25 4
- -
- -
110 72
31 7
27 -
- -
- 10
- -
10 3
- -
- -
80 -
- 80
20 -
- -
- 60
- -
60 15
- -
- -
187 -
112 75
47 -
- -
- 810
- 70
740 203
- -
- -
1,271 83
215 973
25 318
- -
- -
287.5 277.7
9.6 0.2
75 215.6
- -
- -
No resources estimated in 2013 No resources estimated in 201314
287.5 277.7
9.6 0.2
75 215.6
- -
- -
14,620 5,931
5,271 3,416
87 12,756
148 1.0
117 0.9
1 Adaro’s coal resources refer to resources generally suited to host open-pit mineable coal
reserves unless noted otherwise.Adaro’s coal resources are reported according to JoRC
2012 Edition, with reference to the JoRC Coal guidelines 2003. The CP was Joseph Crisostomo
MAusIMM, of PT Adaro Eksplorasi Indonesia, and the resources were estimated in March 2015
as at dec. 31, 2014. Small differences are due to decimal place rounding.
2 Balangan Coal is an informal collective name for the separate IuPs PT Semesta Centramas,
PT Paramitha Cipta Sarana and PT laskar Semesta Alam. Their resources were estimated
in March 2015 in accordance with JoRC 2012 Edition subject to the use of the JoRC Coal
guidelines 2003. The CP was Setiawan of PT Adaro Eksplorasi Indonesia. Signiicant
increases in resources in all Balangan concessions related to reduced transportation
costs allowing for a revision of the resource economic shell to greater depths.
3 The CP was Peter Mucalo MAusIMM, of PT Adaro Eksplorasi Indonesia, and the
coal resources were estimated in April 2013 according to JoRC 2012 Edition.
4 Based on BHP Billiton’s 2013 and 2014 Annual Report with the permission of BHP Billiton.
5 luon metallurgical indicated resources are designated as having potential to host
underground mining. 6 The resources were estimated in November
2013. The CP was John devon of Marston Inc., a golder company.
Notes
68
OuR busiNEss REviEw Of miNiNG sERvicEs
Adaro Coal Reserves
Operating Company Locality
Coal reserves as estimated at Dec. 31, 2014 Total proved
probable Mt Proved Mt
Probable Mt Adaro
ownership equity
Adaro attributable
total proved
probable Mt
PT Adaro Indonesia
1
Tutupan
2
501 373
128 100
501 North Paringin
3
51 35
16 51
South Paringin No reserves estimated in 2014
- wara I
4
310 260
50 310
wara II No reserves estimated in 2014
-
Total Adaro Indonesia 862
668 194
100 862
Balangan Coal
5
PT Semesta Centramas SCM 43
31 12
75 32
PT Paramitha Cipta Sarana PCS 28
20 8
75 21
PT laskar Semesta Alam lSA No reserves estimated in 2014
75 -
Total South Kalimantan 933
719 213
98 915
PT Bhakti Energi Persada at Muara wahau No reserves estimated in 2014
90 -
Total East Kalimantan -
- -
- -
IndoMet Coal Central Kalimantan
No reserves estimated in 2014 25
-
Total Central Kalimantan -
- -
- -
PT Mustika Indah Permai
6
lahat 254
246 8
75 191
PT Bukit Enim Energi Muara Enim
No reserves estimated in 2014 61
-
Total South Sumatra 254
246 8
75 191
TOTAl ADARO PROvED AND PRObAblE cOAl REsERvEs 1,187
965 221
93 1,106
Coal Reserves by Quantity
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69
Reported According to JORC 2012 Edition
Coal reserves as estimated at Dec. 31, 2013 Calculated changes to Adaros coal reserves 2014 vs 2013
Total proved probable Mt
Proved Mt Probable Mt
Adaro ownership
equity Adaro
attributable total proved
probable Mt Changes to
operating company
total proved probable Mt
Changes to operating
company total proved
probable Changes
to Adaro
attributable total proved
probable Mt Changes
to Adaro
attributable total proved
probable
536 368
169 100
536 -35
-7 -35
-7 33
28 5
33 18
55 18
55 No reserves estimated in 2013
- No reserves estimated in 20132014
331 272
59 331
-21 -6
-21 -6
No reserves estimated in 2013 -
No reserves estimated in 20132014
900 668
233 100
900 -38
-4 -38
-4
No reserves estimated in 2013 75
- 43
NA 32
NA 75
- 28
NA 21
NA 75
- No reserves estimated in 201314
900 668
233 100
900 33
4 15
2
No reserves estimated in 2013 90
- No reserves estimated in 20132014
- -
- -
- -
- -
-
No reserves estimated in 2013 25
- No reserves estimated in 20132014
- -
- -
- -
- -
-
254 246
8 75
191 -
- -
- No reserves estimated in 2013
61 -
No reserves estimated in 20132014
254 246
8 75
191 -
- -
- 1,154
914 241
94 1,091
33 3
15 1
1 The Competent Person CP for PT Adaro Indonesia Coal Reserves was Shahzad
Chaudari MAusIMM, who is an employee of PT Alam Tri Abadi.
2 Combined Tutupan reserves decreased by 35Mt due to Tutupan 2014 production and
mining recovery adjustments 3 North Paringin reserves are based on a new
pit shell due to additional mine planning work. 4 wara 1 reserves decreased by 21 Mt due to
wara 2014 production and mining recovery adjustments
5 Balangan Coal is an informal collective name for the separate IuPs PT Semesta
Centramas, PT Paramitha Cipta Sarana and PT laskar Semesta Alam. The CP for PT
Semesta Centramas and PT Paramitha Cipta Sarana was Shahzad Chaudari MAusIMM,
who is an employee of PT Adaro Indonesia. Signiicant increases in reserves in PT
Semesta Centramas and PT Paramitha Cipta Sarana are related to reduced transportation
costs allowing for a revision of the reserves pit shell to greater depths.
6 The CP for the PT Mustika Indah Permai coal reserves was leonard dolby of Marston
Inc., a golder company. The reserves were last estimated in March 2014, and have not been
reestimated as at dec. 31, 2014 due to ongoing revisions to the regulated estimated price of
mine-mouth power-plant coal. A reestimate will be performed in 2015.
Notes
70
OuR busiNEss REviEw Of miNiNG sERvicEs
Quality of Adaro Coal Resources gross as Received Basis
Operating company Locality
Estimated as at Dec. 31, 2014 Total
moisture Ash
Volatile matter
Total sulphur
Caloriic value Kcalkg
PT Adaro Indonesia
1
Tutupan 27.9
2.4 35.9
0.12 4,846
North Paringin 28.7
3.0 33.9
0.23 4,807
South Paringin 30.8
2.9 32.7
0.21 4,651
wara I 38.5
3.6 30.4
0.31 3,971
wara II 43.6
3.1 28.9
0.23 3,657
Total Adaro Indonesia thermal 32.2
2.8 33.6