MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF MINERAL AND COAL

OVERVIEWOFINDONESIASENERGYSECTORAND RECENTDEVELOPMENTINTHECOALSECTOR

JOINT WORKING GROUP ON COAL INDONESIA INDIA

MAIN TOPICS
NATIONAL ENERGY POLICY CURRENT CONDITION COAL POTENCY COAL PRODUCTION STRATEGIC COAL POLICY OPPORTUNITY CONCLUDING REMARKS
2

 NATIONAL ENERGY POLICY

INDONESIAN NATIONAL ENERGY POLICY

Vision : Guaranteeing the sustainable energy supply to support national interest Mission : To guarantee a domestic energy supply To increase the added values of energy sources To manage energy sources in an ethical and sustainable manner To provide an affordable energy for low income people and develop domestic capacities in the field of energy management Measures : Energy Intensification Energy Diversification Energy Conservation

INDONESIAN ENERGI MIX YEAR 2025

Bio-fuel 5 %
Coal 33 %

Renewable Energy 17 %

Geothermal 5 %

Gas 30 % Oil 20 %

Biomass, Nuclear, Hydro, Solar - 5 % Coal Liquefaction 2 %

INDONESIAN NATIONAL COAL POLICY (NCP)

NATIONAL COAL POLICY

Basic Constitution of 1945 Regional Autonomy Policy National Energy Policy

Management Policy

Supply Policy
- Investment Climate - Intensification of Exploration & Production - Conservation - Environment

Utilization Policy
Diversification Price Lignite Coal Briquette Coal Bed Methane

Development Policy
R&D Training Organization Data/Information Coal technology Center

NATIONALCOALPOLICY
PURPOSED OF THE POLICY

SECURING THE AVAILABILITY AND SUPPLY OF COAL FOR DOMESTIC USE IN THE LONG RUN COAL EXPLOITATION SHALL PROVIDE DIRECT AND INDIRECT BENEFITS TO THE STATE AND THE COMMUNITY COAL UTILIZATION SHALL BE FOCUSED ON FULFILLING THE DOMESTIC DEMAND FOR CLEAN ENERGY AT AFFORDABLE PRICE COAL DEVELOPMENT SHALL EMPHASIZED ON UTILIZATION OF ALL GRADE OF COAL THROUGH BEST AVAILABLE TECHNOLOGY

 CURRENT CONDITION

CURRENT CONDITION
Nowadays, coal resources of Indonesia is more than 105 billion tones and coal

reserves is about 21 billion tones or equivalent to 80 billion Barrel Oil Equivalent (BOE). In the year 1998 Indonesian coal production was only 61.3 million tones, then increased spectacularly to 240 million tones during ten years period. Last year, the production of coal continued to climb up to 275 million tones. Approximately 75% of national coal production is exported to various countries, while domestic market needs 30% only. There are 50 Coal Contract of Works (PKP2B) companies that are currently in production stage, other producers are coal Mining Holders (IUP) which its permits were issued by local governments/regency.
The New Mining Law No 4/2009 has emphasized the government commitment

to optimize the benefit of mining activities for the country and community. At present, the government is performing a number of stages as the follow-up of the law implementation, such as; government regulation, socialization with stakeholders, etc.
9

 COAL POTENCY

10

INDONESIA COAL POTENCY

PROGRESS OF COAL RESOURCE & RESERVE

120 100
billion tones

80 60 40 20 0
2004 2005 2006 2007 2008 2009 2010

2004
Reserve Resource 7.00 60.51

2005
7.01 61.37

2006
9.48 65.4

2007
18.71 93.4

2008
20.96 104.76

2009
21.13 104.94

2010
21.131 105.187

Source:GeologicalAgency,2010

CURRENT CONDITION

WORLDS COAL RESERVE

DISTRIBUTION OF INDONESIA COAL

TOTAL RESOURCES 105.187 Billion Ton

TOTAL RESERVES 21.131 Billion Ton

Very High ( > 7100 kal/gr ) High ( 6100 - 7100 kal/gr )

Medium ( 5100 - 6100 kal/gr ) Low ( < 5100 kal/gr )

Source:GeologicalAgency,2010

COAL RESOURCE AND RESERVE BASED ON CALORIFIC VALUE

Quality Class Low Medium High VeryHigh

Total

ResourcesMilliontons) Total
21,227.63 69,726.02 13,220.61 1,013.19

Reserve(Milliontons) Probable
7,603.88 7,063.52 861.73 73.29

CalorificValue (cal/gram)
<5,100 5,100 6,100 6,100 7,100 >7,100

%
20.18% 66.29% 12.57% 0.96%

Proven
1,105.40 2,904.41 1,410.44 109.18

Total
8,709.28 9,967.93 2,272.17 182.47

%
41.21% 47.17% 10.75% 0.87%

105,187.44

100.00%

15,602.41

5,529.43

21,131.85

100.00%

Source: Geological Agency, 2010

LowCalorie<5,100cal/gram MediumCalorie5,100 6,100cal/gram HighCalorie6,100 7,100cal/gram VeryHighCalorie>7,100cal/gram

 COAL PRODUCTION

16

STATUS OF COAL CONTRACT OF WORKS (OCTOBER 2011)

Note: Coalcompanies,includingCCoW,PTBA(BUMN),andIUP CoalproductionfromCCoWis7580%oftotalnationalproduction

17

REALIZATION OF COAL PRODUCTION, DOMESTIC, AND EXPORT ( 2005 2010 )

Realization

Projection

million tones

Domestic

Export

Production
18

CoalTerminalandCapacity
(MaxvesselCapacityinDWT)
Tanjung Redep* 5.000 Tanjung Bara 200.000 B l o r o* 8.000 Loa Tebu* 8.000 Balikpapan 60.000 Tanah Merah 20.000

Tarahan 40.000 Pulau Baai 35.000 Kertapati 10.000 Teluk Bayur 35.000

* River Terminal

M SU R AT A
IRIAN JAYA
KALIMANTAN

SULAWESI JAVA

North Pulau Laut 150.000 IBT 70.000 Sembilang* 7.500 Air Tawar* 7.500 Banjarmasin* 10.000 South Pulau Laut S a t u i* 5.000 Kelanis* 10.000 200.000

COMPARISONOFCOALPRODUCTIONEXPORT

 STRATEGIC COAL POLICY

21

STRATEGIC COAL POLICY

1. To increase the role of coal in the framework of national energy development. 2. To maintain the security of Indonesia long-term coal supply-demand

3. To develop all types of coal

STRATEGIC COAL POLICY

1. To increase the role of coal in the framework of national energy development.

- Blueprint of National Energy Management - National Energy Policy that by 2025 the use of coal in national energy mix will be 33%

2. To maintain the security of Indonesia long-term coal supply-demand

Coal DMO Coal Production Control Coal Pricing

3. ........

COAL POLICY
3. To develop all types of coal

Monitoring, supervision, country revenue Clean coal technology manpower development Utilization /processing of low rank coal Coal briquette Coal bed methane

DOMESTIC MARKET OBLIGATION POLICY & COAL EXPORT CONTROL Coal mining companies can export coal production, when domestic coal demand have been fulfilled (article 11-12 of CCoW). IUP Operation and Production Holders have to prioritize domestic needs (article 84 Government Regulation No. 23/2010). Government set out policy to prioritize coal for domestic needs (article 5 Law Nr. 4/2009)

PROJECTION OF COAL DOMESTIC CONSUMPTION > (2011-2014)

120 100 95 79 80 60 40 20 0 87

104

million tones

2011
0 0.9 0.6 2 0.4 8.9 66.3

2012
0.6 1.1 0.7 2.3 0.5 9.4 71.5

2013
0.9 1.2 0.8 2.3 0.5 10.1 79.1

2014
1.3 1.3 0.8 2.3 0.5 11.2 87.7

Briquette Fertilizer Paper Pulp Textile Metallurgy Cement Electricity

>

Coal domestic consumption is determined on the basis of coal user demand projection

PROJECTION OF COAL PRODUCTION, DOMESTIC, AND EXPORT (2011-2014)

>

400 350 300

million tones

250 200 150 100 50 0

2011 79 248 327

2012 87 245 332

2013 95 242 337

2014 104 238 342

Domestic Export Production

>Coal Production Growth is projected 1.5% annually

COAL PRICE REFERENCE 1. Starting in 2007, coal price has kept on rising. In early 2008 domestic coal supply scarce which was caused by the increase of world coal price. 2. The inexistence of Coal Price Index results in a great variety and disparity between Indonesian and World Coal Price 3. Ministerial Regulation No. 17/2010 concerning Procedure to Set Mineral and Coal Price Index

COAL PRICE POLICY

Note:calculatedin6322kkal/kgGAR

CONNECTIONCHAINOFCOALADDEDVALUE

POWER PLANT

DIRECT USE
INDUSTRY CWM LIQUEFACTION

OIL FUEL GAS FUEL

Chemical Feedstock

COAL

CONVERTION

GASIFICATION COKES ACTIVE CARBON

LOW RANK COAL

UPGRADING

COOKING COAL

Clean Coal Technology

COAL ADDED VALUE PLAN

No. 1

CompanyName PendopoCoal Gasification PendopoCoalUp Grading WhiteEnergyand GunungBayan Resources

Location Prabumulih, SouthSumatera Prabumulih, SouthSumatera Tabang,East Kalimantan

Product CoalGasification

ProductCapacity

Operational EstCommercial: 2016 EstCommercial: 2013 Est.Commercial: 20112012

Progress FeasiblityStudy

2 3

Upgrading Coal BinderlessCoal Briquetting

5,000,000 ton/years 3,500ton/day

FeasibilityStudy

TrialProduction

INVESTMENT OPPORTUNITIES
o Mining infrastructure developments (mainly in Kalimantan and Sumatra) o New application of mining through bidding process in new areas of mining (IUP and IUPK) o Added Value of Mineral (to development of processing and refining) o Cooperation in underground coal mining development o Utilization of law rank coal (LRC) Coal liquafaction Coal gasification Mine-mouth power plant

*)

MEMR proposed Coal liquefaction and gasification business (south Kalimantan, East Kalimantan, Central Kalimantan, Jambi, Bengkulu, South Sumatra, West Sumatra, Riau, NAD) as a one of business sector to obtain income tax facilities in certain field and business.

32

 CONCLUDING REMARKS

33

CONCLUDING REMARKS
In line with the Government Policy in Energy Sector, National Coal Policy is prepared for the purposed of coal resources management, enterprises, utilization and development policy. To fulfill domestic energy and securing coal export needs, the Government is now promoting the development and utilization of low rank coal (LRC) for mine mouth power plant, upgrading brown coal and coal liquefaction. In general, coal supply both for export and domestic consumption can be fulfilled from national production and existing coal resources. For the time being Indonesia still needs big investment to develop the potency on low rank coal and encourages all private investment.

34

www.djmbp.esdm.go.id

ACCELERATION AND EXPANSION OF NATIONAL ECONOMIC DEVELOPMENT PROGRAMS

6PriorityEconomicCorridors: Commoditybases/featuredregionalsectors
Banda Aceh BIMPBIMP-EAGA Medan

1
Pekanbaru Padang Palembang

IMTIMT-GT

3
Pontianak Palangkaraya
Pkl. Pinang

4
Manado Sofifi Samarinda Palu Mamuju Gorontalo Sorong Kendari Ambon Manokwari

Tj. Pinang

Jambi

Jayapura

Bengkulu

Lampung Jakarta Serang

Banjarmasin Makassar

Wamena

Semarang Surabaya Mataram Merauke Kupang

Jogjakarta

Denpasar

Mega Economic Centre 1 ECof Sumatera 2 ECof Jawa

Economic Centre 3 4

Proposed KEK Location

Proposed KEK Location as a FTZ

ECof Kalimantan

ECof Bali Nusa Tenggara

ECof Sulawesi Maluku Utara

ECof Papua Maluku

Source : Kementerian Koordinator Bidang Perekonomian dan Kementerian PPN/BAPPENAS Note : KEK : Koridor Ekonomi Khusus/Special Economic Corridor, FTZ : Free Trade Zone, EC : Economic Corridor 36

Centre of resources production and processing and as national energy source"

Added Value for Mineral and Coal Sector Coal : Developing petrochemical industry by constructing syngas pipeline; Coal Gasification and Coal Upgrading in Pendopo. Mineral: Constructing Processing Facility for gold and silver in SouthTapanuli ; constructing concentrate factory and mining infrastructure for Zinc dan Lead in Dairi Regency
Necessary Key Infrastructure 1.Infrastructure on Electricity related to mineral and coal Steam mine-mouth power plant in PLTU Banjarsari (Lahat, Sumsel); PLTU Sumsel di Muara Enim, PLTU Tj. Enim, PLTU Tarahan (Lampung Selatan) and PLTU Peranap (Indragiri Hulu, Riau). Electricity installment for gold and silver processing in South Tapanuli, Sumut; 2.Infrastructure on Coal Rail way and port - Construction of new railway Tj. Enim Srengsem (Lampung) - Improving capacity of railway Tj. Enim Lampung and Tj. Enim Kertapati - Rail wayMuara Enim Tj. Carat - Construction of Tj. Carat Port (Lampung)
Construction of Kuala Tanjung Dock

Boosting national industry and service"

10000 MW stage1 PLTU 10000 MW stage II PLTA & PLTP 10000 WW stage II OIL REFINERY

Infrastructure: 1.Coal Generated Electricity Development of Steam Power Plant 10.000 MW Stage I and II

Centre of resources production and processing and as national energy source

Added Value on Energy and Mineral Sector 1. Coal: Acceleration of Operation-Production stage in Central Kalimantan Coal Mining in Samarinda, Balikpapan and Kutai Kartanegara Coal Processing inTanjung Redep, Bulungan and Batu Licin Construction of coal upgrading plant in haul road km 68 Coal Liquefaction Project in Kalimantan Timur
Necessary Key Infrastructure: 1.Infrastructure on Coal Railway in Purukcahu - Bangkuang Expansion of coal freight port in Kelanis, Central Kalimantan Construction of overland conveyer from mine to coal freight port and crushing plant 2.Infrastructure on Electricity Construction steam and gas power plant Bangkanai (1x120MW) Construction of mine mouth power plant in Tabalong (2x30MW) Total Infrastructure on Electricity: Power Plant (2.160MW), Transmission (5.346kms), Substation (1.720MVA), Distribution JTM (10.810kms), Distribution JTR (9.907kms), Distribution Station (898MVA)

Research and Development on Low Rank Coal Utilization

New Delhi, 24 November 2011

Agency of R & D for Energy and Mineral Resources Ministry of Energy and Mineral Resources

Role of Energy and Mineral Resources

Source of State Revenue ENERGY AND MINERAL RESOURCES SECTOR

Feed Stocks

Economic Development
Domestic Fuels

Sustainable Development

Multiplier Effects

Targeted Primary Energy Mix

2005
Geothermal, 1.32% Hydro, 3.11% Natural Gas, 28.57% Coal, 15.34%

2025
Oil, 20 % Natural Gas , 30% Alternatives
17%

Oil 51.66%

Coal 33%

Alternatives

Base on: President Regulation No. 5/ 2006 President instruction No. 2/2006

Bio-fuels, 5% Geothermal, 5% others, 5% Coal Liquid 2%

COAL UTILIZATION
POWER PLANT

DIRECT DIRECT USE USE

INDUSTRY CWM LIQUEFACTION

BBM BBG
Chemical Feedstock

COAL

CONVERSION CONVERSION

GASIFICATION COKE

ACTIVATED CARBON
LOW RANK COAL

UPGRADING UPGRADING

HIGH RANK COAL

CLEAN COAL TECHNOLOGY

Coal Centre in Palimanan

FACILITIES : 1. Bio briquette 2. Pilot Plant Activated Carbon 3. Pilot Plant UBC 4. Pilot Plant Foundry COke 5. Pilot Plant Gasification 6. Pilot Plant Aquabat/CS/CWM 7. Pilot Plant Cyclone 8. Pilot plant Gasifikasi Cap. 1MW (*) 10.Mess for Operator 11.Laboratorium 12.Office/ Administation Room In process construction(*)

COALUPGRADING

Upgrading
Definition: Coal Upgrading : process to increase the quality of low rank coal (lignite and or subbituminus) to become similarwithqualityofbituminuscoal Benefits: Increasetheaddedvalue Increasecombustionefficiency Stabilizethequalityofcoalforindustry Reducetransportationcost Reduceemission:CO2,SOX,NOX &partikulat

UBC (Upgraded Brown Coal)

Raw coal

Coal Preparation

X M M

Coal Oil Separation 130C, 100 kPa

Mixed Oil (Kerosene + LSWR)

Slurry Mixing

Slurry Dewatering
140-150C, 0.3 MPa

Cake

Oil Recovery/Drying 180C, 100 kPa

Recovered Oil

Waste Water

Fine UBC

- Upgrading coal of 3,500-5,000 kcal/kg to 6,000-6,900 kcal/kg by moisture reduction from 2550% to <10%
UBC Pilot Plant, Palimanan
8

Briqueting

DEVELOPMENT OF UBC PLANT

Bench Scale, Takasago (Japan), 100 kg/batch

Pilot Plant, Palimanan , Cirebon, 5 ton/day

Function: Test facilities to get engineering data for commercial plant Research, to develop UBC process Operator training for UBC commercial plant Results: low rank coal with calorific value of <5,000 kcal/kg increased up to >6,200 kcal/kg

Demonstration Plant
9

UBC Product

BinderlessCoalBriquetting(BCB)
Location Desa Gunung Sari, Kec. Tabang, Kab. Kutai Kartanegara,Prop.Kaltim WhiteEnergywithPTKaltimSupacoal Capacity:1millionton/year Investasment:US$65million Nobinder Nochemicalreaction Nooilfuel

BCB Product

Coal Upgrading Post Conference Workshop, Singapore 29 April 2011

Coal Drying Briquetting (CDB)

Reducing moisture by evaporation using rotary drying integrated with briquette machine Developed by tekMIRA on bench scale, ready to scale up to pilot plant

Coal Upgrading Briquette (CUB)

The technology will provide higher heating value by reducing high moisture by drying the coal and to keep the dried productby briquetting Developed by Enertech, cooperation with Alstom USA (Flash Dryer), Zemag Germany (Rotary Dryer) and Sahut Conreur France (Briquette Machine)

COAL SLURRY = AQUABAT

Aquabat

Fluid

Fueloil substitution

Aqua bat

Handling =heavy oil

No spontaneous combustion, nodust

AquabatMaking
Lowrankcoal

Mixing: +water +aditives

Upgrading

Aquabat

Bituminus

CS Activities in Indonesia
1992-1996, CS preparation using low rank coal and bituminous coal 1996-2000, CS preparation and combustion test using bituminous coal 2003-now, CS preparation and combustion test using upgraded coal by UBC process 2006-now, R&D of CWM joint cooperation with JGC (Japan) to develop HWT-cs 2008-now, study market on CS utilization Start 2010, build demo plant of CS in Karawang
18

FOUNDRY COKES

19

Carbonization Process
Carbonization
Heating without Air

Coke ; 900-1,050C Semi coke ; 700-900C Char ; 500-700C

Steps

- Softening - Swelling - Stiffening

20

Foundry Coke
o Demand of coke as reductor increased as steel industry in Indonesia is booming o Coking coal not available in Indonesia, meanwhile price of international coking coal is increasing o Opportunity to develop coke making using low rank coal from Indonesia as blended coal No 1 2 3 4 5 6 7 Company PT Krakatau Posco PT. Meratus Jaya Iron & Steel PT. Mandan Steel PT. Semeru Surya Steel PT. Delta Prima Steel PT. Jogja Magasa Iron PT. Indo Ferro Product Plate, Slab Iron Spons Billet Pig Iron IronSpons Pig Iron Pig Iron Capacity Ton Location 3.000.000 Banten and 315.000 Kalsel (New Renewable Energy 1.000.000 Kalsel Including synthetic oil & IGCC) 100 .000 Kalsel 100.000 Kalsel 1.000.000 Jogja 1.000.000 Cilegon

Status of Foundry Coke

a. R & D with Japan to increase the strength

of foundry coke b. Process development in making artificial coking coal c. Development of coal blending to make coke (low rank coal+ coking coal)

ACTIVATED CARBON

ActivatedCarbon
Demand of activated carbon is increasing - Until now, no activated carbon plant from coal has been built in Indonesia - Domestic consumption is 66.000 ton per year

MakingofActivatedCarbon
SUBBITUMINOUS
Carbonizatiion 400-600C

Semicoke

Steam

Activation 900-1000C

Activated carbon

Rotarykiln:capacity1ton/day

CharacteristicofActivatedCarbon
No 1 2 3 4 5 6 Parameter Moisture Ash Iodine number Methylene blue Apparent density HGI Unit % % mg/g mg/g g/ml %
Quality standard of activated carbon Size Iodine number Methylene blue Moisture Ash HGI Granule/powder 500 -1200 mg iodine/gr >100 mg methylene blue/gr < 5% for granule < 8% for powder 5-10% 80

Quality of activated carbon (granule) 4-6 3 -18 500-800 40-80 0,53 50

COAL GASIFICATION

Coal Gasification
Conversion of coal in a reactor into gaseous product (esp. CO and H2) either without or with reactant (air, oxygen, steam, carbon dioxide or mixture of them). CO and H2 can be processed into CH4 (SNG)

Application of Coal Gasification

Small-Medium Scale Industry Diesel Oil Substitution Syngas Production
Agro Industry
Metal Industry Mineral Industry

COAL GAS

Hybrid Diesel
(PLN)

Gaseous Fuel
Chemical Industry Fertilizer Synthetic Oil SNG 28

Coal Direct use (hot gas)

Air + steam

Gas low calorie (<200 btu/scf)

Agro Industry Ceramic Industry Mineral Industry Steel Industry

Purification (cold gas)

Pure Gas (CO, H2, N2)

Diesel Machine Fuel Chemicals Fertilizer Electricity (IGCC) Oil synthetic SNG

O2 + steam

Reaktor

Gas middle calorie (200-400 btu/scf)

Purification

(CO, H2)

syngas

 1 kg LRC 3 Nm3 gas Composition : - CO : 24 34 % : 13 15 % - H2 - CH4 : 1,6 2,4 % - N2 : 47 51 % - CO2 : 4 6 % Price of gas

Gas for Diesel Substitution in Diesel Power Plant

: US$ 3,5/MMBTU Batubara

Comparison of electricity cost - 100% diesel = Rp. 1.650/kWh - 100% gas from coal= Rp. 300/kWh Added Value : Rp. 1.350/kWh or Rp. 25 trillion/year PLTD PLN

Applicationof Gasifier(TeaDryer)

Saving fuel>50%

Coal Liquefaction

Coal Liquefaction Technology

Direct liquefaction
Decomposition and Hydrogenation

Coal

H H Oil

Gasification and shift reaction CO + H2

Indirect liquefaction F/T Synthesis CxHy Oil or Chemicals

Coal Liquefaction Technologies

FischerTropschsynthesis(SASOLPROCESS) IndirectProcess CommerciallyAvailable CleanCoalTechnology(CCT) PilotplantinChina Commercialplantwithsmallcapacity5,000bbl/day BrownCoalLiquefaction(BCL) DirectProcessdevelopbyJapan PilotplantinVictoriaAustralia F/SinthreelocationsinIndonesia(Banko,BerauandMulia)

Concluding Remarks
Indonesia will more relying on coal to fulfill domestic energy demand. Indonesia is interested in developing technology for coal utilization especially low rank coal Appropriate beneficiation and utilization technologies could increase value added and energy efficiency also decrease CO2 emission Indonesia needs strategic partner for Joint Research and Development to develop the Coal Resources

http://www.tekmira.esdm.go.id
36

TECHNOLOGY OF COAL UTILIZATION

TECHNOLOGY

Upgrading

Coal Liquefaction Gasification

Coal slurry (CS)

Foundry Coke Activated Carbon

PRODUCT KIND OF TECHNOLOGY High rank coal UBC, K-Fuel, Fleissner, HWD/SD, SynCoal, CDB, BCB, LFC, HWD Oil from coal BCL, NEDOL, HTI, shenhua, Sasol, CCT Gas and Dual fuel and Tigar syngas Slurry/Heavy CWM, aquabat, JCF Oil Coke Coke Activated Activated Carbon Carbon

Technology Owner PLANT DESIGN Indonesia, Indonesia Foreign Foreign Indonesia, Foreign Indonesia, Foreign Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia

Distribution of Coal Resources

0,45 0,00 0,03 0,00 0,73 0,04 2,11 0,009 0,2 0,02 1,76 1,94 0,52 0,00 47,08 9,54 1,64 0,08 12,26 3,60 0,23 0,0006 37,9 5,90 0,02 0,00 0,12 0,00 0,002 0,00

0,02 0,00

0,10 0,00 0,01 0,00

0,008 0,00

0,0008 0,00

105,19 21,13

CoalResources CoalReserves(openpit)
Source : Geological Agency, 2010

Application of New Coal Technology to support Indonesian Energy Policy

Characteristics of New Coal Technology
Suitable for Indonesian Low Rank Coals Low cost at high efficiency Environmentally Friendly

Coal Utilization Technology to be considered

Coal Fired Power Plant Coal Upgrading Coal Gasification Coal Liquefaction Other use of coal (Formed coke, Activated carbon)

Result Analysis of CDB Product

Coal 1 Coal 2

Parameter

Raw Coal

CDB Product 11.2

Raw Coal

CDB Product 7.1

TM, %

60.20

46

CV, kcal/g (ar)

2,113

5,300

3,238

5,684

Objectives of the CS Project

Immediate Objectives To obtain an HWT-cs demonstration plant of 10,000 tons/year capacity to show the itself and CS combustion to candidate user in Indonesia. Long Term Objectives - To increase the value of Indonesian low rank coal - To prevent the secure and stability of energy supply - To substitute for heavy oil

41

Tigar Gasification Technology

MoU between ARDEMR, PT Pupuk Sriwijaya, Ishikawajima-Harima

Heavy Industries Co. Ltd (IHI) and Sojitz Co. concerning Study on Integration of Lignite Gasifier into Fertilizer Plant (Oct. 18, 2006) TIGAR (Twin IHI Gasifier) Technology has been carried out and the Final Report (Feasibility Study) completed in June 2007

Study on Integration of Lignite Gasifier into Fertilizer Plant using

The Final Report concluded that: - It was feasible to integrate lignite gasifier into existing fertilizer plant - To construct a prototype plant in PT Pupuk Kujang, Cikampek to obtain detail engineering and economic data prepared, including: Utility list, Schedule of project, Scope of work for EPC and operation, project cost, and Commitment of contribution flexibility of site condition of commercial plant, ensuring quality & safety and understanding impact of lignite characteristics

The Draft of Cooperation Agreement on TIGAR Prototype Plant is being

IHI will change/delay schedule of syngas commercialization for

Advantages of Tigar Gasification Technology

Insensitive to content of coal moisture and ash or suitable for lignite High Concentration of H2 suitable for ammonia plant Reduce Grinding Cost and high energy density Low Cost of CO2 Capture

1. Low Temperature 2. Employ Steam as Oxidizer 3. Coarse and dry coal feed 4. Separation between combustion and reduction Zone

CFPP Suralaya (1 x 625 MW)

CFPP Tidore (2 x 7 MW)

Ministry of Energy and Mineral Resources Directorate General of Electricity Republic of Indonesia
CFPP Indramayu (3 x 330 MW) CFPP Ende (2 x 7 MW)

CoalFiredPowerPlant(CFPP) InvestmentOpportunityinIndonesia
CFPP Lontar (3 x 315 MW) CFPP Kendari (2 x 10 MW)

Presented at

The 2nd
CFPP Rembang (3 x 315 MW)

Joint Working Group on Coal Indonesia India NewDelhi,November 24,2011

CFPP Amurang (2 x 25 MW)

CFPP Pacitan (2 x 315 MW)

CFPP Labuan (2 x 300 MW)

CFPP Tarahan (2 x 100 MW)

CFPP Tj. Balai Karimun (2 x 7 MW)

CFPP Barru (2 x 50 MW)

CFPP 3 Bangka (2 x 30 MW)

TABLEOFCONTENT
Indonesia Power Sector Infrastructure (Current Status) Power Generation Current Condition Necessity for Private Power Participation Private Sector Participation Scheme CFPP Investment Opportunity on EPC Contract CFPP Investment Opportunity on IPP Project CFPP Investment Opportunity on PPP Project The Government Facilities Provided Type of Power Generation Procurement Power Generation Development Planning Target of Energy Mix for Power Generation Conclusion

INDONESIAPOWERSECTORINFRASTRUCTURE (CurrentStatus)
:existingtransmission :plantransmission :Generation
TOTAL GENERATION INSTALL CAPACITY : 35.313 MW TRANSMISSION LENGHT: LENGHT: - 500 KV : 5.099 5.099 kms - 275 KV : 1.027 kms - 150 KV : 27.810 27.810 kms - 70 KV : 4.888 4.888 kms DISTRIBUTION LENGHT: - MV (Medium Voltage) : 270.214 270.214 kms - LV (Low Voltage) : 372.709 372.709 kms

SUMATERA : Generation:5.711 MW 275kV:1.027 kms 150kV:9.398 kms 70kV:456 kms MV :73.700 kms LV :92.262 kms

KALIMANTAN: Generation:1.376 MW 150kV:1.824 kms 70kV:123kms MV :23.907kms LV : 22.537kms

SULAWESI : Generation:1.498MW 150kV:3.000 kms 70kV:552 kms MV :24.361 kms LV : 25.404 kms MALUKU : Generation:216 MW MV :4.585 kms LV :2.364 kms PAPUA : Generation:211MW MV :2.074 kms LV :3.558 kms NusaTenggara: Generation:335 MW 150kV:83 kms MV :7.676 kms LV :7.501 kms

JAMALI : Generation:25.606MW 500kV:5.099 kms 150kV:13.505 kms 70kV:3.757 kms MV :133.670 kms LV :219.084 kms

POWERGENERATIONCURRENTCONDITION
Power Generation by Owner

Totalinstalledcapacityisabout35,313 MW, whichconsistofthoseownedbyPLNs(27,849 MW),IPPs(6,331 MW)andPPUs(1,133 MW).

Power Generation by Type

PowergenerationisstilldominatedbyCFPP,thenfollowedby CCPP,DPP,HEPP,GTPP,GeoPP,MHPP,GEPPandWTPP.
Electricity Production by Energy Mix

Oil share in electricity production is still high, because: DPP that should be operated in peak load period, is operating in base load period to fulfill the demand (mostly happened in Outside Java-Bali system) Several CCPP and GTPP in the Java-Bali system are operating utilizing oil as primary energy because of lack of gas supply.
Note: CFPP PowerPlant CCPP PowerPlant : : CoalFired HEPP GTPP CombineGeoPP Cycle : HydroElectricPowerPlant : GasTurbinePowerPlant : GeothermalPowerPlant MHPP GEPP WTPP : MiniHydroPowerPlant IPP:IndependentPowerProducer : GasEnginePowerPlant PPU:PrivatePowerUtility : WindTurbinePowerPlant

NECESSITYFORPRIVATEPOWERPARTICIPATION
Growth rate of demand for electricity is still high (9.5% p.a up to 2029). Electrification ratio is still low (67.2% in 2010). Lack of electricity supply in some areas/regions.
GW
180 160 140 120 100 80 60 40 20 0
800 700 600 500 400 300 200 100 0

TWh
Jamali Outside Jamali INDONESIA

Electricity Demand
(based on draft RUKN 2010-2029)

Additional Power Generation

(based on draft RUKN 2010-2029)

NEED A HUGE OF ADDITIONAL CAPACITY (estimated of 7,800 MW p.a during 20 years), investment required approx. USD 11.4 billion p.a)
Investment Requirement

BUT
Infrastructure Generation

(based on draft RUKN 2010-2029)

Million USD
JAMALI 121,217 9,180 6,546 136,944 Outside JAMALI 79,607 5,844 4,728 90,179 Total 200,824 15,024 11,275 227,122

PLNs investment capability is limited (around 20%) The Government budget for infrastructure is very limited.

Transmission Line and Substation Distribution Line Total

THEREFORE
Privates sector participation are required: Engineering, Procurement and Construction (EPC) Independent Power Producer (IPP) Project Public Private Partnership (PPP) Project

Note: RUKN : National Electricity General Plan FTP-1 : Fast Track Program 10,000 MW Phase I FTP-2 : Fast Track Program 10,000 MW Phase II

PRIVATESECTORPARTICIPATIONSCHEME
EPC Contract The owner of project is PLN. Engineering, Procurement, and Construction (EPC) of project will be offered to private sector through bidding. In this model PLN provides 15% financing and private provides 85%. Example: Fast Track 10,000 MW Phase I and some projects in Fast Track 10,000 MW Phase II. IPP Project The owner and implementer of EPC is private. 100% financing source of the project comes from private and it is passed through to electricity selling price. Example: most of IPP projects and some projects in Fast Track 10,000 MW Phase II. PPP Project The project is collaboration between SOEs and private enterprises. The government could provide either the government support or the government guarantee. If private as the initiator of the project, the government will provide some compensation. Example: CFPP Central Java 2 x 1,000 MW.

CFPPINVESTMENTOPPORTUNITYONEPCCONTRACT
(UnderFastTrack10,000MWProgramPhaseII)

CFPP Sampit Capacity : 2 x 25 MW Status : F/S COD : 2014

CFPP Indramayu Capacity : 1 x 1,000 MW Status : F/S COD : 2017

CFPP Lombok Capacity : 2 x 25 MW Status : F/S COD : 2015

Total : 1,100 MW

CFPPINVESTMENTOPPORTUNITYONIPPPROJECT
(UnderFastTrack10,000MWProgramPhaseII)

CFPP Tj. Balai Karimun Capacity : 2 x 10 MW Status : F/S COD : 2014

CFPP Tj. Pinang Capacity : 2 x 15 MW Status : F/S COD : 2015

CFPP Sumbawa Capacity : 2 x 10 MW Status : F/S COD : 2014/2015

Sub Total : 70 MW

CFPPINVESTMENTOPPORTUNITYONPPPPROJECT

CFPP Jambi Capacity : 2 x 400 MW Status on PPP Book: Priority COD : 2018/2019

CFPP Kalimantan Timur Capacity : 2 x 100 MW Status on PPP Book: Potential COD : 2017/2018 CFPP Sulawesi Utara Capacity : 2 x 55 MW Status on PPP Book: Potential COD : 2017/2018

CFPP Sumatera Selatan - 9 Capacity : 2 x 600 MW Status on PPP Book: Potential COD : 2017/2018

CFPP Sumatera Selatan - 10 Capacity : 1 x 600 MW Status on PPP Book: Potential COD : 2017/2018

Total : 2,910 MW
Potential
Compliance with the National Medium Term Development Plan (RPJM) / Regional and Strategic Plan of the Ministry / Agency / Local Government Location of the project suitable with the Regional Spatial General Plan (RTRW) There are linkages between Infrastructure sector and inter-region Estimation of cost recovery potential and there is a preliminary study

Priority
The project listed on the potential cooperation plans / projects proposed by in charge of cooperation projects for unsolicited projects according to Presidential Decree No. 67/2005 technically feasible, legally and financially based on a preliminary study Risk identification and allocation have been performed Studies on modalities / forms of cooperation that will be used have been carried out Government support has been identified (if needed)

Ready to Offer
Interest potential of businesses to participate Fairness of the tender schedule and readiness of the tender team Completeness of the tender documents There has been the availability and / or approval in support principle of the government (if needed)

THEGOVERNMENTFACILITIESPROVIDED
Fast Track 10,000 MW Phase II Project
The government guarantees the feasibility of PLN business in accordance to the provisions of legislation. Provide facilities such as exemption from import duty and other facilities regulated by the Ministry of Finance.

PPP Project
The government provide the government support or the government guarantee. If private as the initiator of the project, the government will provide some compensation: 1. 2. 3. Additional value (max 10% of the initiator tender assessment); or Right to match by the initiator against the best offer in accordance with the results of the assessment in the tender process Purchase of a joint project initiatives including intellectual property rights attached to them by the minister / head of institution / district head or by the winning bidder

TYPEOFPOWERGENERATIONPROCUREMENT

Tender

Direct Selection

Direct Appointment
Electric power purchase from electric power generator using renewable energy among others, mini/micro hydro, geothermal, biomass, wind and solar; marginal gas, minemouth coal and other local energy sources; Purchase of excess of electric power; Local electric power system in the crisis condition of electric power supply ; or. Addition of electric power generator capacity in the central electric power generator which has been in operation in the same location by Cooperative, Region Owned Enterprise, Private Business Entity, Self-Supporting Community, and individual acting as Holder of Electric Power Business License for Public Interest.

Basically, entire power purchase plan by PLN conducted through Tender, except fulfill condition of Direct Selection and/or Direct Appointment

- In the frame of energy diversification of electric power generation to non petroleum fuel. - More than one developer proposing for direct selection to the system of Electricity Business Authority/Electricity Business License Holder (PKUK/PIUKU). - The volume of capacity being offered by the developers are exceeding the needs for additional capacity of PKUK or PIUKU local system.

POWERGENERATIONDEVELOPMENTPLANNING

Total power generation that will be developed from 2011-2020 is about of 55 GW or in average 5.5 GW p.a (CFPP will be developed about of 36 GW up to 2020 or 65% from total power generation) PLN will develop about of 57% of the total capacity and the rest (43%) will be developed by IPP/private Diesel Power Plant will still be developed, but only dedicated to isolated/remote area.
*

Source: Draft RUPTL PLN 2011-2020

TARGETOFENERGYMIXFORPOWERGENERATION
2011
First semester

2020
Planning

Hydro 7% Oil 19% Coal 46% Geothermal 2% Gas 26%

Oil 1% Hydro 6% Geothermal 12%

Gas 17%

Coal 64%

Electricity efficiency effort is conducted through diversification of primary energy in power generation (supply side) by optimizing utilization of gas, replacement of HSD to MFO, increasing coal utilization, and developing renewable power generation Oil utilization is dedicated to isolated/remote areas with a higher priority for renewable energy resources Gas and coal are given priority to reduce dependence on oil in power generation.
*

Source: Draft RUPTL PLN 2011-2020

CONCLUSION
Indonesia electricity demand is still high thus need a huge additional capacity of generation, transmission and distribution. The government encourages participation of private sector to cooperate with PLN through EPC project, IPP project and PPP project. The government is committed to maintain the PLNs financial viability in order to meet its obligations to other parties. For the next 10 years, the electricity supply in Indonesia is still relying on CFPP, it is because the availability of coal abundant as primary energy and cost of production is relatively cheap compare others power generation, but still taking into account of environmental sounds.

HUMAN RESOURCES DEVELOPMENT IN COAL TECHNOLOGY:

Training Program Cooperation on Coal Mining and Utilization Technology

Presented on The 2nd Indonesia-India Join Working Group Meeting New Delhi, 24 - 25 November 2011

REPUBLIC OF INDONESIA MINISTRY OF ENERGY AND MINERAL RESOURCES EDUCATION AND TRAINING AGENCY FOR ENERGY AND MINERAL RESOURCES (ETA-EMR)

OUTLINE
I. INTRODUCTION Indonesian Coal

II. HUMAN CAPACITY BULDING 2.1 Human Resources Development 2.2 ETAEMR Profile
III.

TRAINING COOPERATION PROGRAM Proposed Program CONCLUSION

IV.

I. INDONESIAN COAL
Indonesia's

coal industry has grown progressively in the last five years. coal production has reached a significant amount of 275 million tonnes (Mt) in 2010 and is estimated to be 300 million tons within five years later. industry has a significant contribution to the economy of Indonesia and the government gets 35% of national income from oil, gas, and coal industries.

Total

Coal

In the last few years, issue of global warming caused by the effects of coal dust and pollutant emissions has become an international concern. Clean Coal Technology, such as coal conversion, offer a solution to global warming issue. Human resources development is essential to the development of coal technologies and achieving global competitiveness.

II. HUMAN CAPACITY BUILDING

Human capacity building can be done through improving specific technical competencies associated with the job, knowledge, skills, and atitudes. This results in a need for education and training institutions which are capable of generating expertise sustainable.

2.1 Human Resource Development 2.2 ETAEMR-Profile

- Education and Training Center for Mineral and Coal (ETCMC)

2.2 ETAEMR PROFILE

COMPETENT HUMAN RESOURCES OF EMR SECTOR

Institute of EMR

EDUCATION AND TRAINING AGENCY (ETA EMR) to provide the competent human resources in order to support policy of energy and mineral resources sectors

Secretariate of the Agency

ETC for Oil and Gas ETC for Geology ETC for Mineral and Coal Underground Mining Training Unit

(Education and Training Center) ETC for Electricity and Renwble energy

2.2. Education and Training Center for Mineral and Coal (ETCMC)

ETCMC The

is one of the education and training centers under Education and Training Agency for Energy and Mineral Resources, The Ministry of Energy and Mineral Resources. main task of the ETCMC is to develop and implement education and training in the field of mineral and coal. The aim of education and training is to improve the quality/competence of Government official as well as mining industry manpower.

III. TRAINING COOPERATON PROGRAM

Training Cooperation Program aims to cooperate in the development of skills and knowledge in creating a productive human resources in the future, in order to promote the development of the nation Indonesia- India. In the spirit of progress the two countries, Indonesia proposed a cooperation program of Mining Technology and Coal Utilization Technology. This program offers cooperation in the field of coal technology, where each country has the experience and expertise.

Proposed Program
a.Coal Mining Technology Special program for improvement of production and productivity of Opencast and Underground Coal Mines; Safety awareness and safety practices are included in operations and mining methods; Transition from Open Cast coal production to Underground coal production. b. Coal Utilization Technology Utilization of coal through clean coal technology for environmental protection; Coal Liquefaction; Upgraded Brown Coal (UBC); Coal Bed Metane. c. Coal Sector Management Training Best management practise of coal mining; Efficiency of coal use and transportation; Coal management; Environmental protection.

IV. CONCLUSION

Training cooperation between India and Indonesia are considered to be an integral part of a reciprocal relationship between the two countries and an important means to promote the exchange of ideas, experiences, knowledge, technical advances, skills and expertise in various sectors of coal. Cooperation Program Training Coal Mining Technology is to increase the stability of coal production and safety management in coal mines through knowledge transfer. The proposed training program cooperation aimed at improving manpowers' understanding and implementing the mining technology and coal utilization technology

MinistryofEnergyandMineralResources

GeologicalAgency

CurrentStatuson DeepseatedCoalResources inIndonesia

IndonesianCoalBasins

Maincoalbasins:SouthSumatera,Kutai&BaritoBasin

CoalDistributionMap

IndonesianCoalResources&Reserve,2010*
0,45 0,00 0,03 0,00 0,73 0,04 2,11 0,009 0,2 0,02 1,76 1,94 0,52 0,00 47,08 9,54 1,64 0,08 12,26 3,60 0,23 0,0006 37,9 5,90 0,02 0,00 0,12 0,00 0,002 0,00

0,02 0,00

0,10 0,00 0,01 0,00

0,008 0,00

0,0008 0,00

105,19 21,13

CoalResources2010(billiontons) CoalReserve2010(billiontons)

*)BasedonSNI(IndonesianNationalStandard)

IndonesianCoalResourcesBasedonCalorificValue, 2011

18,99 32,04 1,40 0,04

2,22 37,36 11,79 0,94

0,002 0,22 0,01 0,00

0,00 0,09 0,009 0,03

0,0009 0,01 0,002 0,00

21,21 69,72 13,21 1.01

LowCalorieCoal( 5.100cal/gr,billiontons) MediumCalorieCoal(5.1006.100cal/gr,billiontons) HighCalorieCoal(6.1007.100kal/gr,milyarton) VeryHighCalorieCoal( 7.100kal/gr,milyarton)

FutureChallengesandOpportunities
NationalEnergyProjectionsetstheuseofcoaltoreached 32.7%in2025 Environmentalissues,includingminewaste,coalcombustion, andlanduseconflicts(theopenpit) Coalwillbeanexcellentenergyresourcesforthefuture, thereforethetechnologymustbeimproveto:
Cleancoaltechnology,suchascoaltogasorcoaltoliquid technology Betterunderstandingofundergroundminingtechnology, consideringverylargepotentialforundergroundcoal ThereshouldbesynergybetweentheuseofCMM/CBMandthe undergroundcoalmining.

DeepseatedCoalResources(1/2)
Coalresourcesbelow100metersdepth Possibilityofexploitation:
UndergroundCoalMining CoalbedMethane(CBM)/CoalMineMethane(CMM) CoalGasification CoaltoLiquid

GeologicalAgencyhavedonesomestudyondeepseated coalresourcesinSumateraandKalimantan
Studyonundergroundcoalresources StudyonCoalbedMethane(CBM)

Mostlycalculatedbyextrapolation,howeversomeareas havebeendeeplyexplored(upto400mdepth)

DeepseatedCoalResources(2/2)
Someoftheparametersdeterminedintheareaofdeep seatedcoalare:
Coalthickness Dippingofcoalseam Calorificvalueofcoal Proximate Ultimate OrganicPetrography CBM/CMMparameters:gascontent,methanecontent,adsorption isotherm,etc

Studycase:
SouthSumatera EastKalimantan SouthKalimantan

StudyCase:SouthSumatera,Map

StudyCase:SouthSumatera,StudyArea
Area Bayat LubukMahang SungaiLilin KotaTengah MusiRawas Nibung Babattoman Babat MuaraLakitan SungaiPinang Sekayu SigoyangBenuang BenakatMinyak Banjarsari Arahan AirSerelo Kungkilan Bunian TanjungLubuk Pagardewa 20Areas Number ofSeams 6 6 2 6 3 4 4 5 6 5 5 7 4 2 5 1 8 4 2 6 91 Maximumdepthof CoalResourcesCalculation (SLm) 400~750 350~650 100~150 250~500 100~250 600 450 350~500 350~450 450 250~500 200~300 400 100~180 300~600 150 350 200~350 200~300 100~200

SouthSumateraPotencyforOpenPitandUndergroundCoal Mining
No
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Locations
AirSerelo Arahan Babat Babattoman Banjarsari Bayat BenakatMinyak Bunian KotaTengah Kungkilan LubukMahang MuaraLakitan MusiRawas Nibung Pagardewa Sekayu SigoyangBenuang SungaiLilin SungaiPinang TanjungLubuk

OpenPit <300meters
75,92 2.116,99 2.482,61 163,21 335,32 1.957,05 735,85 30,91 1.093,45 217,55 1.029,79 273,92 751,04 1.153,67 329,18 5.001,65 8.929,97 472,40 2.698,15 230,18 30.078,82

UndergroundMining >300meters
0 763,09 1.258,07 133,03 0 1.212,17 521,27 54,34 528,29 913,11 862,99 124,19 0,27 389,42 0 3.087,64 356,55 0 769,63 42,22 11.016,27

TOTAL (Mil.Ton)
75,92 2.880,09 3.740,68 296,25 335,32 3.169,22 1.257,11 85,26 1.621,74 1.130,66 1.892,78 398,11 751,30 1.543,09 329,18 8.089,29 9.286,52 472,40 3.467,77 272,40 41.095,10

TOTAL (MillionTons)

StudyCase:East&SouthKalimantan,StudyArea
Area Batulicin BuanaJaya EmbalutWest Langap LoaLepu LoaJananSouth LongIram LongLees LongNah MarahHaloq MarangKayu MuaraWahau Pelakan SenyiurRitan Tapin 15 Areas GeologicalAgencyResult (MillionTons) 242.35 30.42 1,403.21 424.28 543.9 43.2 4,385.0 1,333.36 198.15 8.603,87 JointStudyGA&NEDO (MillionTons) 76.651 371.790 116.618 102.178 322.310 98.498 64.726 1,358.491 605.817 626.964 204.961 9,781.294 295.366 6,008.768 291.233 20,325.6

StudyCase: EastKalimantan

EastKalimantanPotencyforUndergroundCoal Mine
Area 100 200m HypotheticResources (MillionTons) 200 300m 300 400m 400 500m Total (MillionTons) 100 500m

Bontang Santan LongLees LongNah MuaraHaloq Marangkayu Wahau S.Krasi Total

66.592 37.123 360.11 201.371 306.597 33.229 1,019.867 32.737 2,057.6

60.862 33.411 281.734 70.178 214.618 32.044 1,009.669 31.442 1,733.9

55.704 30.069 139.703 68.058 150.233 31.361 999.572 31.523 1,506.2

51.063 25.809 77.869 66.15 105.163 31.361 989.576 30.145 1,377.1

234.221 126.410 859.416 405.757 776.611 127.995 4,018.684 125.847 6,674.9

StudyCase: SouthKalimantan

SouthKalimantanPotencyforUndergroundCoal Mine
HypotheticResources(milliontons) No 1 2 3 4 5 6 Area Tanjung Amuntai Rantau Banjarbaru Sebamban SatuiKintap Total WarukinFormation 100 300m 22.34 24.87 123.33 22.87 193.42 TanjungFormation 100 300m 73.26 27.9 1.35 137.8 96.9 337.29 Total 100 300m 95.6 24.87 151.24 1.35 160.7 96.9 530.7

PossibleJointStudyWithIndia ResourcesExplorationonDeepseatedCoal SuitableCoalforCoaltoLiquidandCoal Gasification CoalMineMethane/CoalbedMethane

ThankYou!

CenterforGeologicalResources

GeologicalAgency
MinistryofEnergyandMineralResources RepublicofIndonesia www.bgl.esdm.go.id

INDONESIAN COAL INDUSTRY

( Current Progress on Business Exchange )
Presented at : Program of Indonesia India Meeting

By :

INDONESIAN COAL MINING ASSOCIATION ( APBI ICMA )

November 24 - 25 , 2011 New Delhi, India

1

OUTLINES

1. INTRODUCTION

1.1. THE VALUE OF COAL IN THE GLOBAL PERSPECTIVE

1. Currently about 7 billion people living in the world. About 2 billion people constrained access to electricity power. IEA projects indicated 1.2 billion people will be without electricity in 2030. 2. The world need much more energy particularly electricity. Coal is the cornerstone of global electricity producing over 8200 TWh ( about 41% of the worlds power ). 3. Coal is the worlds fastest growing fuel for measurable reasons ; abundance, security, affordability, versatility and amenability to clean coal technology. 4. Eliminating of energy poverty, social and economic development and poverty eradication are the first order priorities of developing countries. 5. Among fossil fuel, coal is the most economically competitive with the lowest price on a heat equivalency basis compared to order primary energy sources.
4

1.2. Hard Coal Producer in the world , 2009

Source : OECD/IEA ( International Energy Agency ) 2010

1.3. Composition of Primary Energy Consumption in Major Countries ( 2007 )

Source:1.IEA,WorldEnergyOutlook2009 &EnergyBalancesofOECDCountries(2009Edition) 2.HandbookofEnergy&EconomicStatistics ofIndonesia2009

1.4. Electricity Production from Coal 2008

Source : IEA, Electricity Information, Paris 2010 and Hand Book of Energy & Economic Statistics of Indonesia

2. Indonesian Coal Industry

2.1. INDONESIAN COAL PRODUCTION, EXPORT AND DOMESTIC SALES ( 2000 - 2010 )

Million tonnes

2.2.IndonesianExportsofCoalbyMayorCountriesofDestination,2008 2009 NetWeight:000tonnes

CountryofDestination India China OthersAsia Japan Korea,Republicof Others Taiwan Hongkong TOTAL

2008 22,464 15,568 26,206 43,811 28,195 27,740 25,960 12,651 202,595

2009e 38,901 38,463 34,576 33,614 33,398 21,611 18,369 10,715 229,647

Source : Coal Information 2010

10

2.3. Distribution of Indonesias coal exports in selected countries in Asia , 2009e

Source : Coal Information 2010

11

2.4. INDONESIAN COAL MINING PLAYERS, 2011

Mining Authorization

: 3,796 Companies Coal Contract of Work ( CCoW ) : 77 Companies Stated Owned : 1 Company

Source : Indonesian Coal Book 2010/2011

12

3. Government Policy on Coal

13

3.1.TransformationinMiningLaw
1 2 LegalAspect Authority LawNo.11/1967 LawNo.4/2009 CentralGovernment(StrategicMineral&Vital) Regency ProvincialGovernment(Centralgroupminerals) Provicy,CentralGovernment COW(KK) CCOW(PKP2B) KP(CentralGovernmentMiningPermit) SIPD(ProvincialMiningPermit) WPR Discriminative(unequaltreatment) DirectAppointment Non Upto1millionHa Upto250.000Ha COW/CCOW 30Years Extension2xYears KP:10Years SIPD:10Years IUP (MiningLicensing) IUPKhusus WPR Equaltreatment Throughbidding&Offering Minimum20% 50.000Ha 15.000Ha IUP/IUPK 20Years Extension 2X10Years

Typeofmininglicensing

4 5 6 7

TreatmenttotheInvestor LicensingApproval MinimumDomesticShare ConcessionArea(Coal) Exploration Exploitation LicensingTenor

TaxationNonTaxRegime Royalty(Coal) CCOW:13.5% CorporateTax(Coal) CCOW:1Generation45% 10 PenaltyforIllegalMining Softpenalty 11 DomesticMarketObligation(DMO) Notregulated 12 IndonesianCoalPriceReference Notregulated (ICPR)

IUP/IUPK:4 7% IUP/IUPK:25% Hardpenalty Regulated Regulated 14

3.2. SHIFTING PARADIGM ON DEVELOPMENT PRIORITY TARGET FOR COAL INDUSTRY DevelopmentTarget Until1999 +++ + +++ +++ ++ ++ + +++ + ++ ++ +++ From2000 ++ +++ ++ +++ +++ +++ +++ ++ +++ +++ +++ ++
15

IncreasingGovernmentearning DomesticEnergySecurityofSupply RegionalDevelopment(Infrastructure) Employment CommunityDevelopment EnvironmentSustainabilityAspect EconomicSustainabilityDevelopment TechnologyTransfer HumanRightEnforcement LocalPeopleEmpowering CollaborationWithLocalGovernment ForeignInvestmentEncouragement

3.3. National Energy Mix 2010

National Energy supply is still dependent on fossil fuels of about 95.21%

Source : Indonesian Ministry of Energy Mineral and Resources Directorate General of New Renewable Energy and Energy Conservation

16

3.4. GOI grand policy on coal

(Presidentials Regulation No.5/2006)
ROAD MAP INDONESIAN ENERGY MIX 2006 - 2025
TE : 993 Million BOE (100%) COAL : 152 Million BOE (15,34%) = 50 Million Ton of Coal * TE : 5 Billion BOE (100%) COAL : 1.7 Billion BOE (34,6%) = 564 Million Ton of Coal *

BaU Scenario

TE : 2,8 Billion BOE COAL : 923 Million BOE

(100%) ( 33%) = 301 Million Ton of Coal * 17

*) Using conversion factor : Lignite 1 MT = 3,0649 BOE

3.5.Indonesiandomesticcoalusersbyindustrialsectorin2011
(BasedonMinisterialDecreeofEnergyandMineralResourcesNo.2360K/30/MEM/2010)

No
1

Company
PLTU A.PTPLN(Persero) B.IPP C.PTFREEPORTINDONESIA D.PTNEWMONTNUSATENGGARA E.PTPUSAKAJAYAPALUPOWER METALURGI A.PTINCO B.PTANTAMTbk. SEMEN.PUPUK.PULPDANTEKSTIL A.SEMEN B.PUPUK C.PULP D.TEKSTILDANPRODUKTEKSTIL

TONASE (Milliontonnes) %
55.82 8.97 0.83 0.47 0.19 0.14 0.20 8.86 0.92 0.60 1.97 70.69 11.36 1.05 0.60 0.24 0.18 0.25 11.22 1.16 0.76 2.49

GCV(GAR)
4.000 5.200 4.000 5.200 5.650 6.150 5.200 5.000 5.900 6.000 4.100 6.300 4.000 5.000 4.500 5.000 5.000 6.500

TOTAL

78.97

100
18

3.6. INDONESIAN COAL PRICE REFERENCE ( ICPR )

INDONESIAN COAL FLOOR PRICE REFERENCE DETERMINATED BY GOI AND WILL BE ADJUSTED MONTHLY. ICPR/HBA IS THE AVERAGE COAL PRICE IS CALCULATED BASED ON THE FOUR PRICE INDEX ( ICI-1, PLATTS-1, NEW CASTLE EXPORT INDEX / NEX, NEW CASTLE GLOBAL COAL INDEX / GC ) FOR THE SAME CALORIFIC VALUE. ICPR MEANS FLOOR PRICE OF COAL FOB MOTHER VESSEL ( BARGE, TRANSSHIPMENT, AND INSURANCE COSTS MAY BE ADJUSTED ACCORDINGLY ). BY GOI APPROVAL CERTAIN TYPES OF COAL MAY BE OFFERED BELOW ICPR.

19

4. Indonesian Supply Capability for International Market

20

4.1. COAL RESOURCES STATUS INDONESIA ( 2009 )

Total resources : 104,842 M ton

Source : Indonesian Geological Agency

21

4.2.COALRESOURCESTATUSINDONESIA 2009 Basedoncalorificvalue(adb)

Source : Indonesian Geological Agency

22

4.3. INDONESIAN COAL MAP RESOURCES AND RESERVES

51.92 b.t 52.53 b.t 11.23 b.t 9.90 b.t 0.23 b.t 0.002 b.t 0.15 b.t

SUMATRA

0.01 b.t Resources : 104,842 b. t Lignite : 20 % Subituminous : 66 % Bituminous : 14 % Reserves : 21,13 b. t Lignite Subituminous Bituminous

b.t : billion tons

: 29 % : 60 % : 11 %

Source: Badan Geology/Geological Agency,2009 Source: Badan Geology/Geological Agency,2009

23

DISTRIBUTION OF INDONESIAN COAL RESOURCES 4.4. DISTRIBUTION OF COAL RESOURCES REPORTED IN 2007 IN INDONESIA
MALUKU PAPUA

SULAWESI

8%
SUMATRA

KALIMANTAN

1%

32% 10%

48%
JAVA

BALI

Distribution of Coal Resources Potential

Source: Badan Geology/Geological Agency,2009

24

4.5. Indonesian Supply Capability for International Market will be depended on :

Intensification of

coal exploration.

Further infrastructure development (namely Inland hauling road, railway, seaport , coal blending terminal ). The application of underground mining method .

Future Government policy on energy particularly on export of coal.

25

5. Investment Opportunities and Challenges in Coal Sector

26

5.1. Investment Opportunities in Coal Sector

Take over small & medium scale coal block ( 20-100 million US $ ). Coal terminal / Blending facility ( 200 300 million US$ ). Upgrading LRC ( Low rank coal ) and Cooking coal processing ( 200 500 million US $ ). Coal conversion ( gasification and liquefaction ) ( > 1 billion US $ ). Mine mouth power generation ( 300 700 US $ ). Other downstream coal industry ( activated carbon, chemical feedstock, fertilizer , etc ). Inland transportation ( railway, tool road ) ( > 1 billion US $ ). Seagoing transportation ( barge, mother vessel, floating coal terminal ).

27

5.2. Fiscal Incentive for Infrastructure Project

5 % Tax cutting for corporate Tax. Net revenue deductable up to 30% of Investment cost, applied in 6 ( six ) years for 5 ( five ) % per year. Accelerated depreciation and Amortization. Exemption or deduction of Regional Tax. Exemption or deduction of Regional Retribution Fee. Losses compensation costs over for 5 to 10 years.

28

5.3. Challenges in Coal Sector

High cost for exploration. Land acquisition and overlapping land utilization between mining and plantation or forestry. Complicated government Bureaucratic system. Some regulation are not in harmony with the mine law ( due to lack of national consensus on extractive industry development ).

29

5.4. Migration facility for foreign investment and foreign workers

Granting a limited stay permit for 2 years . Granting permanent residence permit may be granted after living in Indonesia for 2 years. Granting re-entry permit for multiple trips to the license holder is limited by the validity period of one year provided for a maximum period of 12 months. Granting re-entry permit for multiple trips to the license holder is limited by the validity period of two years is given for a maximum period of 24 months. Re-entry permits for some time travel for holders of permanent licenses granted for a maximum period of 24 months.

30

5.5. Exemption of import duty for imported goods and raw materials for investment

Exemption of import duty on the importation of two-year period starting from the entry into force of the decision to import tax exemption (can be extended in accordance with the period of industrial development as stated in the investment approval). When using the domestic production of at least 30% of the total value of machinery, on the import of goods and materials may be granted exemption from import duty for purposes of additional production or production for 4 years based on installed capacity, with a period of importation for 4 years from the entry into force of the release decision import duties .

31

6. Closing Remark

32

6.1. CLOSING REMARKS

Indonesian coal production and export level may be guaranteed for the next five years, amid significant increasing of domestic utilizations, due to : - sufficient coal reserves. - existing infrastructures are still able to support production capacity up to 600 million ton per year. - domestic consumption level will be far behind production capacity.

33

6.2. CLOSING REMARKS ( continued )

Infrastructure development and solving some overlapping regulation in the coal mining in accordance with Master Plan : Acceleration and Expansion of Indonesia Economic Development 2011 2025, will be very supportive for increased coal production in the future so that the potential of Indonesia in meeting the global needs of the world will be achieved.

34

THANK YOU

35

CERTIFICATION No. QUAL/1999/13307

THE INTERNATIONAL CERTIFICATION NETWORK IQNET REGISTRATION No. 1999/13307

BukitAsam

PTBA COAL MINING IN SUPPORTING INFRASTRUCTURE PROJECT IN SOUTH SUMATERA

,New Delhi November 2011

51,92 B T 0,002 B T

52,44 B T

0,15 B T

0,23 B T 0,014 B T

TOTALCOALRESOURCE 105,187 BILLION TONS

TOTALCOALRESERVE 21,131 BILLION TONS

GEOLOGICALAGENCY,2009

COAL QUALITY
Low Calorie Medium Calorie High Calorie Very High Calorie

66%

Low Calorie (< 5100 cal/gr, adb) Medium Calorie (5100 6100 cal/gr, adb) High Calorie (6100 7100 cal/gr, adb) Very High Calorie (> 7100 cal/gr, adb)

13%

Coal Resources Coal Reserve

: 105 Billion ton : 21 Bilion ton

20% 1%

Source : Badan Geologi, Indonesia -Thailand 2011

Million ton

120 100 80 60 40 31 20 2005 2010

Power Plant Cement Industry Metalurgiand Pulp Source : Directorate Mineral and Coal

113 96 86 103

2015

2020
Upgrading Brown Coal Coal liquefaction Small Industries

2025

EnergyMix2007
Geothermal; 1,32% HydroPower; 3,11%

EnergyMix2025
Crude Oil; 20%

BioFuel; 5% Geothermal; 5% Biomass, Nucle ar,Hydro, Solar ,Wind; 5% LiquefiedCoal; 2%

Crude Oil; 51,66%

Natural Gas; 28,57% Coal; 15,34%

Coal; 33% Other; 17%

Natural Gas; 30%

GOI POLICY IN ECONOMIC DEVELOPMENT

6

MP3EI :

Masterplan for the Acceleration and Expansion of Economic Development of Indonesia 2011-2025 (MP3EI). Focus in Six Economic Corridors : Sumatera, Jawa, Kalimantan, Sulawesi, Bali-Nusa Tenggara, and Maluku-Papua. MP3EI is to drive Indonesian Economy in High Growth, Equitable, Justice, and Sustainable. The implementation of MP3EI is coordinated by a Committee chaired by the President.

INDONESIA SIX ECONOMIC CORRIDORS

Banda Aceh BIMPBIMP-EAGA Medan IMTIMT-GT

1
Pekanbaru Padang Palembang Bengkulu Lampung Jakarta Serang
Tj. Pinang

3
Pontianak Samarinda Palu Mamuju

4
Manado Sofifi Gorontalo Sorong Kendari Ambon Wamena Manokwari Jayapura

Jambi Palangkaraya
Pkl. Pinang

Banjarmasin

2
Semarang Surabaya

Makassar

5
Mataram Merauke Kupang

Jogjakarta

Denpasar

Pusat ekonomi mega 1 2 KE Sumatera KE Jawa

Pusat ekonomi 3 4

Usulan lokasi KEK

Usulan lokasi KEK yang merupakan FTZ

KE Kalimantan KE Sulawesi

5 KE Bali Nusa Tenggara 6 KE Papua Maluku

 Established in 1981, PTBA is the only State Owned Coal Mining Company in Indonesia ; Coal Mining : Tanjung Enim (South Sumatera), Ombilin (West Sumatera) Peranap (Riau Sumatera) Sanga sanga (East Kalimantan) Numbers of Employee = 3.255 people ; Coal resources is 7.2 billion ton Mineable Reserve is 1.7 billion ton

MINING BUSINESS LICENSES (IUP) Tanjung Enim Mine : 66,414 Ha Ombilin Mine : 3,950 Ha Peranap/Cerenti Mine : 17,100 Ha IPC Mine : 3,238 Ha TOTAL : 90,702 Ha

Total Resources : 7.29 billion tons Total Mineable Reserves : 1.99 billion tons

Sales and Production (today) : 12 MTA Sales and Production plan 2017: 50 MTA

PERANAP/CERENTIMINE Recources :0.79 billiontons Mineable :0.37billiontons

Pekan Baru

Samarinda
KERTAPATIPIER Stockpile :50.000tons Troughput :2.5 MTA BargeMax. :8,000DWT TANJUNGENIMMINE Resources :6.36 billiontons Mineable :1.59 billiontons

Padang

TELUKBAYURPORT Stockpile :90,000tons Troughput :2.5million MTA VesselMax. :40,000DWT

Palembang

*)

Tanjung Enim

ExistingRailway
IPCMINE Resources :0.045 billiontons Mineable:0.01 billionton

OMBILINMINE Resources :0.10billiontons Mineable :0.02billiontons TARAHANPORT Stockpile :560,000tons Troughput :12 MTA VesselMax :80,000DWT

Tarahan

*)

include mineable reserve in disputed area Lahat (0.22 billion tons).

0.20 bn tons

0.06 bn tons

0.68 bn tons 3.51 bn tons 1.25 bn tons

3.58 bn tons

SPEC
TM ( %) AR CV (Kkal/kg) ADB CV (Kkal/kg) AR

BITUMINOUS
< 18 > 6,400 5,800 7.950

SUB BITUMINOUS
18 -30 4,900 6,400 4,400 5.800 > 35

LIGNITE
< 4,900 < 4,400 10

RESOURCES

MINEABLE RESERVES

Tanjung Enim 87%

Tanjung Enim 80%

Total Resources : 7,29 Billion Ton Total Mineable Reserves : 1.99 Billion ton
(By Competent Person Verification International Mining Consultant, Desember 2008)

PTBA AS A PUBLIC COMPANY :

Established in 1981 ; Become Public company in 2002 ; Price per share whwen IPO in 2002 :Rp 600,Price per share today : Rp 18.000, Rp 19.000, Share composition in 31 of December 2010 :

12

BUCKET WHEEL EXCAVATOR In Tanjung Enim Mine

14

PTBA coal is transported by railway :

10 MTA to Tarahan Port in Lampung 2 MTA to Kertapati Port at Musi River

Existing Railway Capacity in Sumatera

In million tons

PTBA PTKA agreed to upgrade railway capaity 22,7 ton per annum in 2014

15

14.000 12.000 10.000 8.000 6.000 4.000 2.000 Domestic Export TotalSales 2005 7.289 2.492 9.781 2006 6.753 3.165 9.918 2007 6.896 3.955 10.851 2008 8.321 4.477 12.798 2009 8.068 4.416 12.485 2010 8.228 4.723 12.951

MT

NewRailway CooperationwithADANI
Capasity :35.0jtt/thn Mitra :PTBA Adani Jarak :270 Km PerkiraanSelesai:2015

Existing Railway
Capacity:Menjadi22.7jtt/th Parties :PTBAdan PTKA TE Tarahan : 416.6Km TEKertapati :167.6Km Perkiraanselesai:2014

Tanjung Carat

KERTAPATI PIER
PALEMBANG
KERTAPATI

TAMBANG TANJUNG ENIM

Muara Enim

Prabumulih

CBMinTgEnim
SaatiniPelaksanaan KegiatanPemboran

Lahat

Baturaja

CoalGasificationinTgEnim
SaatinimasihdilakukanStudi Kelayakan

NewRailway(SubidiaryCompany)
Capasity:25.0jtt/thn Mitra :PTBA;TranspacificRailway Infrastructure;ChinaRailwayEng. Jarak :307Km Perkiraanselesai:2014

STOCKPILE TARAHAN PORT

NEW PORT

17

EXISTINGRAILWAYPROJECT (TANJUNGENIM TARAHANPORT& KERTAPATIPIER) Parties ExistingSouthSumateraRailwayowned andoperatedby PTKA,whichis astateownedrailway company. Toacceleratetransportationvolume growth,inOctober2009PTBAandPTKA signedanew CoalTransportation Agreement(CTA)for20yearscontractin ordertoachieve railway capacityof 22.7 milliontons / annumin2014. 22.7 milliontonsperannumin2014 (increasedgradually)

NEWRAILWAYPROJECT (TANJUNGENIM ANEWPORTINLAMPUNG PROVINCE) PTBA 10% 80% RajawaliAsiaResources ChinaRailwayEngineering 10% EPCcontract(USD1.3billion)andO&M contract (USD3.5billion)signedinMarch2010 Alignmentdesignapprovalhasbeenobtained from Regencies(July2011) 25.0milliontonsperannum (increased gradually)

NEWRAILWAYPROJECT (TANJUNGENIM T.CARATSOUTHSUMATERA PROVINCE) Adani 98% SouthSumatraProvince2% PTBAasthecoalSuplier

Status

HOA oftheCTA(Coal Transportation Agreement)hasbeensigned betweenPTBA, Adani,andSouthSumatraPemprop FeasibilityStudyofCoalRailway TransportationandthePorthavebeen completed 35.0milliontonsperannum (increased gradually)

Capacity

Target

2011 :13.6milliontons 2012 :15.6 milliontons 2013 :18.5 milliontons 2014 2029 : 22.7milliontons

1st year:7.5milliontons 2nd year:15.0milliontons 3rd year:20.0milliontons 4th year:25.0milliontons 2015

1st year:7.5milliontons 2nd year:10.0milliontons 3rd year:20.0milliontons 4th year:25.0milliontons 5th year:35.0milliontons 2015

Commercial Operation

BANJARSARI MINE MOUTH POWER PLANT PROJECT (2x110 MW)

Location Parties TanjungEnimmine PTBA(59.75%),PJB(29.15%),NII (11.10%) FinancingfromBNI EPCcontractorbyCNEEC AmendmentPPASignedinJuly2011

POWERPLANTTGENIM
TanjungEnim Mine

POWERPLANT TARAHAN
Tarahan Port

PTBA100%

PTBA100%

Status

EPC 91,4%

EPC(landpreparation)

Capacity 2x110MW 3x10MW 2x8MW

CoalConsumption

1.4milliontonsperannum,suppliedby PTBA

Comercal Operation

2014

2011

2013

UPGRADINGEXISTINGINFRASTRUKTUR
Location Parties Tarahan Port PTBA DetailEngineeringDesign Status

COALBEDMETHANE
TanjungEnimmine PTBA(27.5%), Pertamina (27.5%), Arrow/Dart Energy (45%). ProductionSharingContractbetweenconsortium and governmentsignedin August2009. JointOperationAgreementsignedinFebruary 2011. Currentstatus:detailExploration. 50MMSCF/day(millioncubicfeetperday)

Capacity

Existing :1Port 80.000DWT

NewPort:1Port@150.000DWT

Comercialoperation

2013

2013

COOPERATION BETWEEN PTBA AND ADANI (1):

Bukit Asam has a cooperation with Adani in increasing capacity of coal transportation by developing Railway from Tanjung Enim to Tanjung Carat (270 km) and the Coal Port at Tanjung Carat in South Sumatera as follows : The cooperation is initiated by Head of Agreement among three parties : 1. Adani : Investor / Developer 2. Bukit Asam : Coal Suplier ; 3. Sumatera Selatan Govt.: Regulator ; HoA was signed on 25 August 2010 in Jakarta (the amandment signed on 25 Januari 2011 in New Delhi) ; Capacity of coal transported : 35 MTA (700 milion ton in 20 years) Project complete : 2015 (prediction) Status : Adani today is completing the FS dan Permit Lincences ; Bukit Asam is preparing Coal Mining ; The HoA will continue with : The Coal Transportation Agreement ; Coal Sales Agreement .

COOPERATION BETWEEN PTBA AND ADANI (2) :

Coal Resources Prepared By PTBA

MINING ESTIMATION RESOURCES

1. South Banko Coal Field 2. Lahat Coal Fields 3. Suban Jeriji Field Total

379 MT 2,484 MT 502 MT 3,365 MT

Mining Reserves with asumption 25% from Geological resources are approximately 841 Million Tonnes

COOPERATION BETWEEN PTBA AND ADANI (3) :

LP 3 X = 374751.260 Y = 9590760.217

LP 2 X = 348943.252 Y = 9585615.026

LP 1 X = 376315.385 Y = 9567873.513

AlternativeTrainLoadingStationLocationPlan
ALTERNATIF LOKASI TLS PT ADANI SUMSEL

CONCLUSION

The development of the infrastructure of coal is very useful : For PTBA is to increase capacity of production and sales ; For Adani, it will develop the company to be larger and more experinced company ; For the Government of Indonesia as well as South Sumatera : the opportunity to sell more coal which is increasing the economical scale ; For the Government of India : the opportunity to buy more coal from Indonesia ; For both the Government of Indonesia and Government of India : it will increase a better relationship between two countries.

BukitAsam

INDONESIA

Review of Rail and Port Project Nov 24, 2011

Rail Project

Background

Rail and Port Project Journey so far Project conceptualization - August 2008 Site visit and preliminary studies Internal Team - Dec 2008 Proposal submitted to Governor, Sumsel - Chairmans visit in January 2009 Milestones Achieved
HoA - August 2010 Incorporation of SPV, BKPM approval, and Permit from Governor for IUJP coal transport Finalization of Rail Alignment Feasibility study completed by Aurecon Autralia based on the technical studies by HR Wallingford - UK, EMS- Tech - Canada, PT Diagram and others

Rail Project

Background

Rail and Port Project Journey so far (Contd)

Activities under progress Dept of Transport Route agreement Discussions with PTBA
40 MMTPA can be considered Quality shall be around ICI 4 grade Mining units have been identified as South Bangko (157 MMT), and Suban Jeriji (502 MMT) Price shall be as per HBA / HPB Waterfall guarantee can be considered

Rail Project

Schedule

Probable timeline of Project Execution Schedule of Construction 2011 12 2012 13 2013 14 2014 15 : Definitive Agreement with PTBA, Completion of EIA, and Land acquittal after detailed agreement : Earthwork, Bridges & Roads ( 20% of work total work). : Earthwork, Bridges, structures, Track ( 65% of total work) Possibility of multimodal shipment from Teluk Betung : Track, Signaling to be completed ( 15% of total work) Rolling Stock to be acquired in phases

Schedule of Production 2015 -- 16 2016 -- 17 2017 --18 2018 -- 19 2019 -- 20 2020 -- 21 : 7.5 MTPA : 12.5 MTPA : 20 MTPA : 25 MTPA : 35 MTPA : 40 MTPA

Rail and Port Project

Contents

(1) Rail Project

(2) Port Development

(3) Access Channel

(4) Stockpile & Material Handling

(5) Capital & Operating Cost

(6) Next Steps 5

Rail Project

Technical Parameters

Rail Project

Technical Parameters

Rail Project

Technical Parameters
D Unloading Loop

The proposed rail alignment divides into 4 distinct sections.

A.Hilly terrain near Muara Enim, i.e., Train Loading

Station to Station 5 (72.310 Kms.),

B.Flat ground between Station 5 to Station 3 (Teluk

Betung) (82.64 Kms), and

C.Flat and swampy terrain, i.e., from Station 3 to

Unloading Station (84.263 Kms)

D.Unloading Loop (4.364 Kms)

Rail Project

Technical Parameters

Land Utilization pattern along the proposed Rail alignment

Land Characteristics Plantation Productive Forest Land Marshy Land Protected Forest Misc. Total

Length (in mtrs.) 80,663 64,674 60,535 21,519 12,080 239,471

% 33.68% 27.01% 25.28% 8.99% 5.04%

Port Project
Area Distance (*)

Technical Parameters
Bore Hole Drilling Pattern Depth of Boreholes 30 mtrs. Soil Penetration Test (SPT) @ 8 for every 10 km distance

Marshy Land

90 kms.

@ 1 for every 10 km distance

9.00

72

Normal Land

60 kms.

@ 1 for every 15 km distance

4.00

@ 1 for every 5 km distance @ 1 for every 10 km distance

12

Hard Land

90 kms.

@ 1 for every 20 km distance

4.50 say 18

9 93

Width of Number of Waterbody Water (Span in mtrs) Bodies 0-30 3

Pattern of Borehole drilling 1 bore holes at one end of the water body 3 1 bore holes at one end of the water body

Pattern of SPT 1 SPT at one end of the water body 1 SPT at each end of the water body

31-50 51-100 more than 100 mtr.

} }

14

10

1 bore holes at one end of the water body Total

10 20 38

1 SPT at each end of the water body

20 37 130

Note: (*) = The distance are approximations, and exercise was done prior to foot survey.

Rail Project

Details

Rail Infrastructure Technical Details

Rail Project

Details

Rail Infrastructure Technical Details

S. No. Description
1 2 3 4 5 6 7 8 Earthwork Station Building Rail Sleepers Ballast Steel Bridges Via Duct Ground Box culverts

Details
Cut 9.35 MCM, Fill 8.80 MCM 7 nos. 598,575 KMtrs 496,628 522,189 CM 24, totaling to 2,170 mtrs, longest 920 mtrs Soft 7 for 12 rivers totaling 21,425 mtrs on pre cast pre stressed 600 mm diameter concrete piles 186, totalling 3,775 mtrs

Rail Project

Technical Parameters

Technical studies and Surveys undertaken

Study
Study of Land Characteristics and Surface features Soil Investigation studies - Drilling and Laboratory Analysis

Vendor
University of Indonesia PT Diagram and PT Soilens

Timeline
Sept to Dec 2010 Sept to Nov 2010

Topographic Survey - LIDAR Survey

PT Karvak Nusa Geomatika Aurecon Consultants

Nov 2010

Railway Design and Engineering

March 2011

Rail Project

Technical Parameters

Design Parameters Train Alignment

Sl. No.
1 2 3 4 5 6 7

Design Aspect
Design Speed Train precedence Rolling stock maximum speed Maximum Grade (Loaded direction) Minimum radius Vertical Curve Minimum Horizontal radius Loaded Train 100 Kmph 1 in 320 (C)

Design Criteria
100 Km Empty Direction and 80 Kmph loaded direction

Maximum Grade (Empty direction) 1 in 100 (C) 2500 m Desirable 1200m Minimum 600 m Balloon Loop 300 m Where change of grade > 1 in 200, Desirable distance = 2050 m ML / Passing Loop / Stopping Loop: 6.0 m Passing Loop / Sick wagon siding : 10m ML/Passing loop : tangential 1 in 16 (50 Kmph)

8 9

Minimum Distance between sag and summit Track spacing

10

Turn outs

Passing loop / Stopping loop : tangential 1 in 12 (40 Kmph) To sick wagon sidings : 1 in 8.5 (15 Kmph)

Rail Project

Technical Parameters

Design Parameters Track Structure

Sl. No. Design Aspect
1 Rail Section

Design Criteria
Main Line: 60 Kg/m standard carbon Rail, 90 UTS Loop Line/siding : 52 Kg IU rails 1435 Standard Gauge SG 26.5 MT Axle load, 2500mm length @ 1660/km Main Line : 300mm Other line : 200 mm Resilience CWR with FBW and modified SEJ

2 3 4 5 6

Gauge Sleepers Ballast Profile Fastenings Rail Length

Design Parameters Civil Work

Sl. No.
1 2 3 4

Design Aspect
Corridor Width Formation width Blanket thickness (Capping layer) Maintenance Road

Design Criteria
60 m minimum or D + 5 m from toe 6100 mm 1000mm 3 m wide where existing Road are not available

Rail Project

Technical Parameters

Design Parameters Bridge Design Aspects

Sl. No.
1 2 3 4 5 6 7 8 9 10 11

Design Aspect
Design Life Design Live load Other load Flood design period For Discharge > 50 Cum/S for 50 Yr Return Period For Discharge < 50 Cum/S for 50 Yr Return Period Standard Bridge span For Discharge > 50 Cum/S for 50 Yr Return Period For Discharge < 50 Cum/S for 50 Yr Return Period Other minor water channels Minimum Grade of concrete

Design Criteria
50 years 26.5 MT Axle Load As per AS 5100 or any other heavy Haul Railway system 50 Year 20 Year

Span up to 25 m PSC slab/Girder RCC BOX RCC Hume Pipe RCC Substructure : M 25 RCC Super structure : M 30 PSC elements : M 50

Rail Project

Technical Parameters

EMD standard gauge locomotive, SD70ACe

Model Power Tractive effort continuous Rail gauge Mass Axle load Maximum speed Power per driving axle Fuel capacity

SD70ACe 3207 kW (Nominal) for traction = 4,300 HP 698 kN at 14 km/h 1,435 mm 195 tonnes 26.5 tonnes after conversion to 8 axles 113 km/h 377 kW 18,550 litres (fuel tank capacity may need to be reduced to accommodate 8 axles)

Rail Project

Technical Parameters

Bradken standard gauge coal wagons VSAL type

Individual hopper Length Tare Capacity Gross Bogies Body

15.721m 21t 85t theoretical (80.8t assumed practical payload) 106t Planned for max speed of 100km/h empty and 80km/h loaded. Stainless steel body, unpainted.

Rail Project Train Configuration

Technical Parameters

Element Number of locomotives per train Gross tonnes locomotive (each) Number of wagons per train Payload per wagon Payload per train Gross tonnes train (loaded) Gross tonnes train (empty) Length of Train (m)

Value 1 195 115 80.8 9,286 11,896 2,610 1,830

Comment SD70ACe Diesel Electric Locomotive 6 axle locomotive to be converted to 8 axle to reduce axle load to 26.5t Bottom dump coal wagons Allowance for 5% under-load 115 x 80.8 115 x (80.8 + 21) + 1 x 195 115 x 21 + 1 x 195

Rail Project

Technical Parameters

Return Trips per annum (based on full 40Mt p.a.)

SD70ACe Operation Payload per train Total number of return trips p.a. Average time between (loaded) trains (minutes) 9,286 4,308

Assumptions 5% under-load assumed

114

Operations of 340 day per year, 24 hours a day and 90% availability, to achieve 40Mt p.a.

Timetabled intervals between trains (minutes)

90

To allow for spare slots for track maintenance or operational flexibility

Rail Project

Technical Parameters

Summary of Rolling Stock

Operation to achieve 40Mtpa (SD70ACe ) Number of train sets Number of mainline locomotives Number of shunt locomotives Number of wagons Allowance for 5% spare wagons Total Number of Rolling Stock Payload per train 10 11 3 1150 58 1222 9,286t

Rail and Port Project

Contents

(1) Rail Project

(2) Port Development

(3) Access Channel

(4) Stockpile & Material Handling

(5) Capital & Operating Cost

(6) Next Steps 22

Port Project

Technical Parameters

Satellite image of the Port & Surrounding

Port Project

Technical Parameters

Tidal area for Development of Port Tanjung Carat

Location Image of Tanjung Cerat

-17.9

Proposed location of
-15.8

Tanjung Cerat

-14

-14.8

Banyuasin River

2-Lane Road under Construction

Port Project

Technical Parameters

Shipping Viability Criteria 2 Feasibility & Availability of Channel Depth

Rail Project

Technical Parameters

Final Channel Dimensions - PIANC rules

CHANNEL Recommended Channel width Recommended Channel length Recommended radius of channel bends Recommended diameter of manoeuvring area Non-tidally restrictive channel depth Berth Area

DIMENSIONS 235 m 19 Km 3000 m 600 m -18.5mCD -20.0mCD

Based on the dimensions, the total volume of dredged material is 25.2 million cubic metres. This includes the berthing pocket, turning circle, main channel and an over dredge allowance.

Rail Project

Technical Parameters

Final Cross Section of Channel

Port Project

Technical Parameters

FINALPLANOFCHANNELWITHTURNINGCIRCLEPOSITION

Port Project

Technical Parameters

BASEDONSTUDYOFSOILCONDITIONSAELRECOMMENDED SOILIMPROVEMENTBYUSINGVERTICALWICKDRAIN
The whole of the port area will have wick drains installed to increase the immediate settlements for the terminal. These will accelerate the rate of settlement in the upper 40m of material during the construction period.

Construction level (preload + settlement counter) : +9.500 mCD Settlement expected at hand over : 3.460 m Expected final elevation : +6.040 mCD

Port Project

Technical Parameters

FINALPORTPARAMETERS Handling Capacity Maximum ship size Port Area Stock pile area Port Elevation Recommended preloading Depth of Channel Capital Dredging Navigation Channel Wagon unloader 40 mtpa 200,000 DWT 107 HA 28.3 HA w/20 mMT stock CD + 6 mtrs 3.5 mtrs CD - 18.5 mtrs 25.2 million m3 19 Kms 2 units rated at 7000 tph

Port Project

Technical Parameters

Si.No 1 2 3 4 5 6 7 8 9 10 11 12 Fill Soil Filter cloth

Description

Detail
8,679,627 m3 at reclamation area 1,119,653 m2 15,990,394 m 12,680 ton 889 set or 20,891 mtrs total length 3,400 mtrs 29,836.66 ton 14,664 m3 1,774.948 ton 19,210.2 m3 6,095.5 m3 25,121 m2

Vertical Wick Drain Steel Sheet Pile OZ-28A & OZ013A (Double) Tie Rod 60 mm , 23.5 m length Steel Wale 2 UNP 380x100x54.5 Steel Piles Concrete Steel Reinforcement Armor rock, Gravel Permeable geotextile ( Woven type )

Port Project

Technical Parameters

FINALSHOREPROTECTIONDESIGN DoubleSheetpilewall,cofferdamwithscouringprotection

HAT

Structural systemstobe used for revetment is doublesheet pilewall (12,680ton total) with scouring protection.

Port Project

Technical Parameters

BERTHANDSHIPLOADERCONFIGURATIONCRITERIA
ANNUALCAPACITY CAPE160,000MT SHIPLOADINGDAYS CAPACITY LOADINGVOLUME 40MMT 250VESSELS 330 7000MT 330*7000*18=400000MT

Rail Project

Technical Parameters

RADIALSHIPLOADERLAYOUT BREASTING,MOORINGNRANGINGARRANGMENTS

Main Jetty consists of these following structures: 4 Breasting Dolphins, 2 on each berth 7 Mooring Dolphins 2 Linear Ship Loader Platforms 2 Pivot Ship Loader Platforms Interconnecting Trestle Walkways, connecting between dolphins

Rail and Port Project

Contents

(1) Rail Project

(2) Port Development

(3) Access Channel

(4) Stockpile & Material Handling

(5) Capital & Operating Cost

(6) Next Steps 35

Sumsel Project Project Capex

Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Project Capital Expenditure

Expenditure Head Project preliminaries Below Rail Cost Above Rail Cost Misc.Assets, Land Cost and Additional Premium Sub Total - Rail Project Project preliminaries Reclamation Work Shore Protection Main Jetty Service Jetty Material Handling System Access Channel Additional Premium Sub Total - Port Project Prelim. & Pre-Operative Expenditure Other Assets (Excavators, Dozers, Dumps, etc) Interest During Construction Contingency Financing Cost Working Capital Margin Sub Total - Other Costs Total Project Cost

Amount 51,018,400 810,746,334 268,770,000 231,800,000 1,362,334,734 3,000,000 83,001,622 23,670,744 80,575,522 3,322,030 177,020,000 105,816,500 60,000,000 536,406,420 75,000,000 35,000,000 250,000,000 100,000,000 25,000,000 25,000,000 510,000,000 2,408,741,154

Note: Based on the offers received from various suppliers

THANK YOU

PT. ADANI SUMSEL

Rail Project

Technical Parameters

Geo Technical Investigations - Rail

Rail Project

Technical Parameters

Rail Project

Technical Parameters

Rail Project

Technical Parameters

Rail Project

Technical Parameters

Rail Project

Technical Parameters

Rail Project

Technical Parameters

Rail Project

Technical Parameters

Rail Project

Technical Parameters

Rail Project

Technical Parameters

Rail Project

Technical Parameters

Rail Project

Technical Parameters

Rail and Port Project

Contents

(1) Technical Parameters

(2) Legal and Regulatory Approvals

(3) Project Implementation Schedule

(4) Capital & Operating Cost

(5) Investment Parameters

(6) Next Steps 50

Source: United States Department of Transportation, 2005 from Web based Sources