PT Adaro Minerals Indonesia Tbk ("AMI") was established to be the center of Adaro’s non-coal mineral assets within the aspiration to build a bigger and greener Adaro. AMI has several subsidiaries conducting metallurgical coal mining operations in addition to several subsidiaries established to carry out operations in minerals and mineral processing businesses.
Metallurgical coal is an essential material for steel production. AMI's product has been warmly welcomed by the customers, particularly due to its low ash content, low phosphorous content, and high vitrinite content. As a part of the Adaro Group, AMI and its subsidiaries enjoy the solid support of the integrated supply chain from the mine to the stockpile and the transshipment area. AMI also provides consultation services to the subsidiaries and offers mining services by leasing the crushing plant, located in PT Adaro Indonesia ("AI")’s mine area in Wara, Tabalong regency, South Kalimantan province. The plant has been in operations since 2019 to crush and transfer coal to the stockpile through a conveyor of 800 ton per hour capacity. This equipment is currently leased to AI with the production target of one million tonnes per year.
Meanwhile, subsidiaries of Adaro Minerals Indonesia in charge of its mineral processing business is preparing to build an aluminum smelter in the world’s largest green industrial park in North Kalimantan. This business will be an important part of Indonesia’s downstream initiatives for green economy.
Operational Area
Metallurgical Coal
AMI conducts metallurgical coal mining activities through its five subsidiaries, each holding a Coal Contract of Work (CCoW). Collectively, these CCoWs stretch over an area of 146,579 ha with total coal reserves of 173.0 Mt and total coal resources of 975.6 Mt as of December 2023. These vast resources and reserves establish AMI’s position as one of the largest greenfield metallurgical coal projects globally.
The types of metallurgical coal owned by the Company are as follows:
HCC coal is the majority reserve owned by the Company. The Company's HCC coal has low ash and phosphorus content, moderate to high volatile matter content and low to moderate sulfur content. HCC coal has a high value-in-use compared to other types of coal.
Semi hard coking coal has a different RoMax value from HCC. When viewed from the strength of the coke produced, SHCC produces a lower coke strength than HCC so that its value-in-use tends to be lower than HCC.
Green coal is coal found in the CCOWs’ locations owned by the Company with a lower Crucible Swelling Number (CSN) value compared to HCC and SHCC. Based on the characteristics and quality, Green coal consists of Semi Soft Coking Coal and Pulverized Coal Injection.
SSCC is coking coal with lower quality than HCC. The company's SSCC coal has a low ash content, volatile matter content and moderate sulfur content. SSCC coal is also used in the steel processing industry as a mixer with HCC coal.
PCI is used in steelmaking, sintering, smelting, and for injection into furnaces to reduce coke use.
|
Metallurgical coal |
Coking |
AMI's metallurgical coal resources and reserves in five CCOW areas are calculated based on the updated coal resources and reserves estimation report carried out in August 2021 using the rules in the 2012 JORC Code. This indicates that the Company is able to create sustainable economic performance and contribute to the country through its operations.
The Company’s coal resources classified into Measured, Indicated, and Inferred Resources are presented in the following table:
|
CCOW/Location |
Total Resources (million tonnes) |
Measured (million tonnes) |
Indicated (million tonnes) |
Inferred (million tonnes) |
|
PT Juloi Coal - Bumbun |
174.5 |
60.4 |
57.8 |
56.4 |
|
PT Juloi Coal - Juloi Northwest |
629.9 |
- |
269.6 |
360.3 |
| PT Kalteng Coal - Luon (metallurgical coal) |
50.9 | 24.7 | 19.3 | 6.9 |
|
PT Sumber Barito Coal |
15.0 |
6.5 |
6.5 |
2.0 |
|
PT Lahai Coal - Haju |
4.0 |
3.5 |
0.4 |
0.1 |
|
PT Maruwai Coal - Lampunut |
101.4 |
100.2 |
1.2 |
0.0 |
|
Total |
975.6 |
195.3 |
354.8 |
425.7 |
The following information is the Company's estimated coal reserves classified in Proved and Probable are shown in the following table:
|
Operating Company/Project |
Total Reserves (million tonnes) |
Proved (million tonnes) |
Probable (million tonnes) |
|
PT Juloi Coal - Bumbun |
55.5 |
0.0 |
55.5 |
|
PT Kalteng Coal - Luon |
17.7 |
0.0 |
17.7 |
| PT Sumber Barito Coal - Dahlia Arwana (metallurgical coal) |
5.6 | 0.0 | 5.6 |
|
PT Lahai Coal - Haju |
2.0 |
2.0 |
0.0 |
|
PT Maruwai Coal - Lampunut |
92.2 |
90.8 |
1.5 |
|
Total |
173.0 |
92.8 |
80.3 |
Aluminium
AMI is also seizing opportunity from the advent of green economy and government’s direction to push downstream processing through an aluminium smelter project in the industrial park in North Kalimantan. The smelter is targeted to be split into three phases of 500,000 tpa each, with estimated initial phase of the commercial operation in 2025.
Indonesian government has launched the downstreaming program of the mining sector to increase export values, create job opportunities, and improve economic condition of the local communities. Through the aluminum smelter, AMI will support the down-streaming program by creating value add for alumina. This move is the starting point of the Adaro Group’s business expansion toward supporting the green economy while ensuring sustainable growth.
