PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 565
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
42. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
a. Coal mining, hauling, barging, transhipment and other related agreements continued
Under the agreements made by SIS and coal producers, SIS provides equipment through a rental mechanism, and provides mining services for overburden removal and hauling, and also coal haulingtransportation. SIS is required to
meet a minimum production requirements level for certain activities. SIS receives a service fee calculated on a monthly basis, based on a formula which includes several adjustment clauses.
Coal producer Agreement date
Contract period or production level metric tonnesMT
PT Berau Coal Binungan Blok 1-4
1 March 2007 - 21 September 2012
30 September 2012 - 31 December 2015 PT Berau Coal
Sambarata Blok B-1 21 September 2012
30 September 2012 - 31 December 2015 PT Borneo Indobara
Kusan 23 February 2012
1 January 2012 - 31 December 2016 or certain production level
b. Land-Use Cooperation Agreement
On 4 November 2009, MSW and the Government of Tabalong Regency entered into a land-use cooperation agreement, for the use of 100.2 hectares of the Government of Tabalong Regency’s land, located in Mabu’un village,
Tabalong Regency, South Kalimantan. Under this land-use cooperation agreement, MSW received land rights Hak Guna Bangunan over the Certificate of Management Rights owned by the Government of Tabalong Regency.
On 27 February 2014, MSW and the Government of Tabalong Regency amended the land-use cooperation agreement and changed the term of the agreement to 50 years, revised the land area based on needs, and provided fixed
contribution and profit sharing to the Government of Tabalong Regency.
c. Banking facility
On 5 September 2007, Adaro entered into a banking facility agreement with HSBC to issue a bank guarantee. The facility represents combined limit facility amounting to US30,000 with treasury facility amounting to US25,000.
This facility is not bound by any collateral. This agreement has been amended several times with the last amendment to extend the maturity date of this agreement to 31 July 2014. Adaro is in the process of extending this agreement.
On 30 October 2014, Adaro entered into a banking facility amendment agreement with PT Bank DBS Indonesia for banking facilities in the form of bank guarantees, bid bonds, performance bonds and stand-by letters of credit, with a
total limit of US15,000. This facility is not bound by any collateral and the maturity date of this agreement is 15 July 2015.
On 11 November 2011, Adaro entered into a banking facility agreement with PT Bank ANZ Indonesia to issue a bank guarantee. The total limit of this facility is US10,000, which includes the issuing of a bank guarantee to support bid
bonds, performance bonds and payment guarantees amounting to US10,000 or stand-by letters of credit amounting to US10,000. This facility is not bound by any collateral. This agreement has been amended several times with the
last amendment extending the maturity date of this agreement to 11 November 2014. Adaro is in the process of extending this agreement.
On 28 April 2014, Adaro entered into a banking facility agreement with PT Bank Mandiri Persero Tbk to issue a bank guarantee with a total limit amounting to US30,000 in the form of a bid and performance bonds. This facility can also
be used by SIS, MSW, JPI, MBP, HBI, SDM and IBT. This facility is not bound by any collateral. The agreement was amended to extend the maturity date to 27 April 2015.
As at 31 December 2014, the total bank facilities used by Adaro which were obtained from HSBC, PT Bank DBS Indonesia and PT Bank Mandiri Persero Tbk and from other financial institutions in various currencies, aggregated to
US16,084 31 December 2013: US14,268. These facilities had been issued in relation to sales contracts and reclamation guarantees.
The use of certain banking facilities requires Adaro to maintain time deposits refer to Note 7.
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AdARo ENERgy 2014 ANNuAl REPoRT
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 566
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
42. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
d. Sales commitments
