O UR
W OR
L D
O UR
TH O
U g
HT s
O UR
PE O
PL E
O UR
C O
M M
U N
IT IE
s O
UR g
O v
ERN A
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INAN C
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OU R
B US
IN E
S S
ADARO ENERgY 2012 ANNUAL REPORT
73
Million bank
cubic meters
2003 2004
2005 2006
56.1 66.0
85.6 122.8
119.9 159.3
208.5 225.9
299.3 331.5
22.5 24.3
36.1 42.2
26.7 38.5
47.7
34.4 40.6
47.2
2007 2008
2009 2010
2011 2012
300 350
200 250
150
100
50
Leveraged buyout of Adaro
Start of US and European
financial crises
10 -ye
ar c omp
ou nd
an nual
gr ow
th r ate
C AG
R o f 10
5-y ear C
AG R o
f 7
From there, the coal is reloaded onto road trains for hauling to our barge port for processing and onward
transportation. Of note in 2012 was our investment in overburden
stripping removing the rock overlying coal seams, which helped us strip a record amount, exceeding our
target for the year and more than doubling the output of 2008, as part of our long-term mine planning.
Operations at the south Kalimantan mines are under the control of our subsidiary PT Adaro
Indonesia AI, which uses ive mining contractors working on multi-year contracts, including our
own subsidiary PT saptaindra sejati sIs. These contractors are responsible for the overburden
stripping, coal extraction and hauling, while we focus on exploration, mine planning and
production supervision together with environmental management.
We view 2013 as a year of consolidation, a time to focus on improving our business processes and
reducing costs through better collaboration with all our contractors in order to have effective, eficient
and safe operations. To preserve our margin while maintaining our long-term mine plan, we plan to
reduce our average planned stripping ratio — the number of bank cubic meters of overburden that we
remove for every tonne of coal excavated — from 6.40x to 5.75x, and aim to keep the actual stripping in
line with the plan in 2013.
We also aim to improve our mining plan and standard operating procedures throughout the coal
supply chain to obtain optimum hauling distance, stripping ratio, fuel usage and cycle time to increase
total productivity.
Furthermore, we are pleased to be able to start commercial operations in 2013 of two infrastructure
projects, our overburden out-of-pit crushing and conveying system and 2x30MW mine-mouth
power plant that will further improve our eficiency and reduce costs see pages 94 and 100. All our
efforts will continue to focus on creating maximum sustainable long-term value from Indonesian coal.
