Adaro Indonesia

From SourceWatch
Jump to navigation Jump to search

Adaro Indonesia, second-largest coal producer in Indonesia, operates a major coal mine in the Tanjung district of South Kalimantan Province in Indonesia. They are based in Jakarta. The company has group subsidiaries ranging from thermal coal mining and trading to barging and ship-loading operator. "Each subsidiary is positioned to be an independent and competitive profit centre enabling the Group to have a reliable and efficient coal supply chain.", describing the operation structure at Adaro.[1]

On its website the company states that it within the mining lease area "which contain total coal resources of approximately 3.0 billion tones of open cut coal characterized by extremely thick seams of up to 50 meters with relatively low overburden. The coal is exceptionally clean with 0.1% sulphur, 1.5% ash and low nitrogen and has been trademarked internationally as 'envirocoal'."[2] The ultra low sulphur "Envirocoal" has been the key supply to Castle Peak Power Station in Hong Kong, one of the world's largest coal fired power station.[3]

Adaro Indonesia stated that the operation of the mine began in 1991 with production reaching 34 million tonnes in 2006.[2] The director, Garibaldi Thohir, said the company aimed to produce 52 million tons of coal in 2012, even in the face of economic crisis the demand for coal by China and India was still high. [4]

In August 2011, Adaro Energy had a 75 per cent stake in Mustika Indah Permai, South Sumatra. Two months later, the producer bought 35 percent stake of Servo Meda Sejahtera, an integrated coal logistics services provider in South Sumatra. [5]

In 2011, there is a 10-year US$750 million club loan for Adaro Indonesia which was controversial in the loan market, judging the maturity of the deal. [6]

Coal Mining

Adaro Indonesia hold the Tabalong coal concession, which comprises three mining pits in close proximity to each other: Tutupan, Paringin and Wara. In 2014 the three pits produced a total of 55.32 million tonnes of coal. (Tutupan 43.53 million tonnes, Paringin 6.08 million tonnes and Wara 5.71 million tonnes.)[7]

The three mines are effectively one mining complex: according to an archived version of Adaro's website the Wara 1 coal deposit "is located 5 kilometers west of the Tutupan Central area."[8]

Power generation

In its quarterly report Adaro Energy reports that "PT Bhimasena Power Indonesia, a joint venture formed in 2011 by a consortium comprising our subsidiary, PT Adaro Power (34%), Japan’s Electric Power Development Co (J-Power)(34%) and Itochu Corporation (32%), will be the first project in Indonesia to use the public-private partnership (PPP) model when it develops a US$4 billion coal-fired power plant in Batang district, Central Java. In October 2011, Bhimasena signed a power purchase agreement with PLN with a 25-year term from the start of commercial operations, targeted for early 2017. Bhimasena is on track to reach financial closure by the end of 2013. During the first quarter of 2013, Bhimasena continued to purchase land and processing necessary permits."[9]

Adaro Energy also reported that "n March 2012, a consortium of Adaro Power and Korea East West Power received letter of intent to undertake an independent power producer (IPP) project to construct a 2x100MW coal-fired power plant in South Kalimantan. The consortium had previously been announced as the sole qualified bidder for the project. We hope to sign the power purchase agreement with PLN in 1H13, and do financial closure within one year following the signing."[9]

Contact Details


Articles and Resources


  1. "A Snapshot of Adaro Energy", Adaro Energy website, accessed December 13, 2011.
  2. 2.0 2.1 Adaro Indonesia, "Our Story", Adaro Indonesia website, accessed June 2008.
  3. "Envirocoal and Castle Peak Power Station", Adaro Energy website, accessed December 13, 2011.
  4. "Indonesia's Adaro sees 2012 revenues up 8-10 pct", Reuters website, accessed December 13, 2011.
  5. "Adaro Predicts Big Growth Year in 2012", The Jakarta Globe website, accessed December 13, 2011.
  6. "Loan pricing up in robust market", The Asset Magazine website, accessed December 13, 2011.
  7. Adaro, "Delivering Positive Energy", Adaro Investor Presentation, February 2015, page 15.
  8. Adaro, "Exploration and Reserves", Adaro, archived website from August 16, 2013.
  9. 9.0 9.1 Adaro Energy, "Quarterly Activities Report First Quarter of 2013 For the Three Months Ending March 31st, 2013", Adaro Energy, page 14.

Related SourceWatch Articles

External Articles

This article is a stub. You can help by expanding it.