Indonesia's booming coal industry - The ASIA Miner

Coal AgeAsia®Edition 1 June 2011 A Mining Media publication www.mining-media.comIndonesia’s boomingcoal industryIndustri batu bara Indonesia 'boom'Licence for Straits Asia’s Northern LeasesKonsensi-konsensi utara Straits Asia dapat lisensiChurchill Mining issue a wake up callMasalah Churchill Mining menjadi peringatanSouthGobi Mongolian resources on way upSumber-sumber tambang South Gobi Mongolian melejit

AsiaFEATURESSpotlight on IndonesiaA partnership between Australian resources company Pan Asia Corporation and internationalunderground coal mining group Kopex is accelerating development of the TCM Coal Projectin South Kalimantan..................................................................................................................10Coal AgeAsia®Edition 1 June 2011 A Mining Media publication www.mining-media.comUpdated resource and reserve statements indicate that Kangaroo Resources will have totalresources of 3.146 billion tonnes at three projects upon completion of the transaction for thePakar project ...................................................................................................................11Challenger Deep Resources is advancing its strategy to establish a portfolio of coalexploration projects and progress the projects to production stage. ...................................12C @ Ltd has signed an agreement with PT Ethica Trada Cermelang which will see bothcompanies focus on accelerating the identification and development of coking and highenergy thermal coal projects in Indonesia. ......................................................................17NEWSConstruction work has started on a rail line to link the massive Tavan Tolgoi project withMongolia’s national rail network at Sainshand. ..................................................................4For the first time in a five year plan, China’s Congress has established targets to tackleclimate change. ..................................................................................................................5Indonesia’s coal bed methane (CBM) industry appears to be following in the footsteps of thecoal industry with new areas opening, exploration increasing and production starting.........6.AROUND THE REGIONMongoliaIndicated resources at SouthGobi Resources’ Ovoot Tolgoi Complex in southern Mongoliahave increased by 7% while inferred resources are up by 190%. ......................................28Indonesia’s boomingcoal industryLicence for Straits Asia’s Northern LeasesChurchill Mining issue a wake up callSouthGobi Mongolian resources on way upStraits Asia Resources is ramping up productionat its Sebuku Coal Project in SouthKalimantan to a steady-state annual target ofbetween 4.5 million and 5 million tonnes overthe medium term from only 1.1 million tonnes in2010. The company has already more thandoubled annual production at the nearbyJembayan project to about 6 million tonnes injust three years. It has also been granted a borrowand use licence, for the Northern Leases atSebuku. See page 4.Photo courtesy Straits Asia Resources.ChinaChina’s first manned test of an underground refuge chamber is complete. ......................28AustraliaBandanna Energy has received EIS Guidelines for two Bowen Basin projects ..................29AustraliaEstimated resources at Rey Resources’ Duchess Paradise project have increased 9% .... 32IndiaClean Global Energy has signed a UCG technology agreement with Essar .......................30DEPARTMENTSAdvertisers’ index .............................................44Events ...............................................................37From the Editor ...................................................2Product news ................................................... 42Supplier news ....................................................39Orpheus trial B26 shipment - 14 Adaro increases production - 27 China Coal Corp funds boost -32June 2011 l Coal Age Asia l 1

NewsPINJAM PAKAI FOR NORTHERN LEASESOverlooking Straits Asia Resources’ Sebuku project in South Kalimantan.INDONESIA’S Minister of Forestry has formallyissued the Izin Pinjam Pakai, or borrowand use licence, for the NorthernLeases at Straits Asia Resources’ Sebukuproperty. Granting of the IPP enables thestart of exploration work and mining activityin the Northern Leases.This has triggered a decision by StraitsAsia to ramp up annual production atSebuku mine to a steady‐state target ofbetween 4.5 million and 5 million tonnesover the medium term from only 1.1 milliontonnes in 2010.Exploration of the area will begin almostimmediately so that a clear and robustmine plan can be developed for expansionin planned phases.The experience gained by Straits Asia atthe Jembayan project, where productionhas more than doubled in only three years,will be a valuable asset for the aggressiveproduction targets that will be set forSebuku. Annual infrastructure capacity forthe mine is already rated at well over 6 milliontonnes. Sebuku coal, one of Indonesia’shighest grades of thermal coal, is a recognizedbrand in the international market.Sebuku Island lies on the most easternposition of South Kalimantan, affordingeasy access to open, deep water seas and tothe major shipping routes in and out ofAsia. The island’s highest point is only 125metres with Straits Asia’s mining areadefined mainly by marshy swamps andhills ranging from 5 to 25 metres.Sebuku has a population of about 5000 ofwhich more than 750 are employed at theoperations. Straits Asia’s concession areatotals more than 18,000 hectares on thewest portion of Sebuku and extending intoa shallow sea water basin about 3 to 5metres deep between Sebuku and the largerneighbouring island of Pulau Laut.The Northern Leases are simply extensionsof the seams that have been minedover the last five years and are expected toproduce the same quality of coal for sale tothe same customer base that Straits Asiahas developed since Sebuku first beganproduction in 1998.Straits Asia and its mining contractor,PAMA, have a clear plan for mobilizationin the Northern Leases with overburdenremoval and coal mining scheduled to startin about two months and an initial focus onan area that is directly adjacent to the existingTanah Putih pit where strip ratios startat about 3:1.Straits Asia is now set to enter a periodwhen its two coal mines are both expandingwith the extra benefit of expected significantcost reductions as volumesincrease at Sebuku.Work on Tavan Tolgoi rail linkMUCH has been written and said in thepast 12 months about the potential of theTavan Tolgoi (TT) Coal Project in Mongoliabut the words are now being put in toaction. Infrastructure has been touted asone of the major barriers to fast tracking ofthe project but this is now being addressedby a government determined to see theproject come to fruition as soon as possible.Construction work has started on a railline to link TT with the national rail networkat Sainshand. This was marked by aceremony involving the laying of a foundationstone for the railway.The ceremony was held in Khar toirom,10km from Sainshand soum in Dornogobiprovince, and was attended by nationaland provincial government officials as wellas transport and railway chiefs and otherdignitaries.The TT‐Sainshand line is the first part ofan ambitious 1100km rail project that willsee the west‐east line continue on toChoibalsan to link with the transport networkto Russia’s eastern seaports.During the ceremony, the managementsof state‐owned Mongolian RailwayCompany and Eastern Railway Companywere given special government permits tobuild the basic structure of the railway. Atender to build a 100km railroad fromSainshand towards Baruun‐Uurt, wasawarded to Mongolian Railway and onefor laying 100km of rail from Sainshandtowards the TT deposit went to EasternRailway.It is also understood that construction ofa new 246km‐long highway linking theGanqimaodao border crossing in InnerMongolia, China, with TT is under way.Inner Mongolian officials say Chineseimporters have funded the RMB59 millionproject. It is expected that imports viaGanqimaodao may hit 12‐15 million tonnesthis year, up from 7.71 million in 2010.Mongolia has chosen four banks to managethe multi‐billion dollar initial publicoffering of Erdenes‐Tavan Tolgoi Co, whichcontrols the TT coal deposit. Erdenes MGLLLC chief executive officer B Enebish saysthat Goldman Sachs Group, DeutscheBank, BNP Paribas and Macquarie Groupare handling the IPO of the state‐ownedcompany.He says the government plans to sell up4 l Coal Age Asia l June 2011

Newsto a 30% stake in Erdenes‐TT to internationalinvestors and an additional 10% tolocal companies, as well as give away 10%to Mongolian citizens. The governmentwill continue to hold about 50%.TT has about 6 billion tonnes of reserves,including 1.4 billion tonnes of coking coaland 4.66 billion tonnes of thermal coal. Thegovernment is due to award a mining contractlicence for the eastern half shortly. Thecontract is likely to be for a 4‐5 year periodwith annual production capacity of 15 milliontonnes.The government has shortlisted sixgroups from an initial 15 applications todevelop the central‐west part of thedeposit. The groups are ArcelorMittal, ValeSA, Peabody Energy. Xstrata Plc, a venturebetween Mitsui & Co and China’s ShenhuaGroup, and the Russia‐Japan‐Korea consortiumled by OAO Russian Railways. Thewestern side of the central area holds morethan 1 billion tonnes of coal, 68% of whichcan be used for steelmaking and the rest asfuel for power plants.When questioned recently about thetimeframe for TT, B Enebish says ErdenesMGL is now at the third stage of discussionswith investor consortiums and willsoon select the successful bidder. He says itis not just the mine that is being discussedbut also the railways, infrastructure andfactories for value added products.Vallar increases Bumi interestUK‐BASED Vallar Plc expected to boost itsstake in Indonesia’s largest coal producerPT Bumi Resources to almost 50% througha share‐swap deal by the end of May.Vallar, which completed the acquisition ofa 25% stake in March, offered to swap 57.7shares of Bumi for a share of Vallar.Vallar’s co‐chairman Nathaniel Roth ‐schild says, “Under an ideal scenario in anideal world we would end up owning closeto 50% of Bumi, which would really cementthe relationship between Bumi and Vallar.”Vallar agreed last November to invest $3billion in Bumi and PT Berau Coal Energyin a stock and cash transaction to tap accessto a growing mining sector in Indonesia,the world’s largest thermal‐coal exporter,amid rising demand for the fuel from Indiaand China. Vallar will be renamed BumiPlc and is expected to be listed on the FTSE100 Index on the London Stock Exchangeby the end of June.“The acquisition has brought togethersignificant holdings in Indonesia’s largestand fifth‐largest coal producers to create aLondon‐listed Indonesian coal champion,”Total coal production from PT Bumi Resources’ Indonesian operations isexpected to reach an annual rate of 111 million tonnes by the end of 2012Nathaniel Rothschild said. “Both Bumi andBerau have strong organic growth profiles,with operations and projects that are perfectlypositioned to take full advantage ofthe current high demand for coal from thefast growing markets of Asia.”Bumi plans to repay the first tranche ofdebt to China Investment Corp ahead ofschedule in October this year, while continuingits business relations with the Chinesesovereign wealth fund. “I think given theChinese appetite for resources, they havestrong desire to build on the relationshipthey have already got with this group,”Nathaniel Rothschild says.Vallar, which completed acquiring a 75%stake in Berau Coal in April, may offer tobuy an additional stake at 540 rupiahapiece. Vallar may keep a 5% stake of Beraufree‐float in the market after the tenderoffer and is planning to increase it to 20%within the next two years, to comply withIndonesian regulations. Vallar agreed tobuy 26.2 billion shares of Berau Coal at 540rupiah each or for a total of 14.1 trillionrupiah from PT Bukit Mutiara.Bakrie Group, the owner of Bumi, andBukit Mutiara, received shares in Vallar aspart of the transactions. Bakrie Group nowowns about 54.6% and Bukit Mutiara hasabout 13.2% in the company.Bumi has recently declared its intentionto use company internal cash to finance anincrease in coal production by 2013 toreach 111 million tonnes. This year it is targetingproduction of 66 million tonnes, upfrom 60 million in 2010. Bumi’s directorand corporate secretary Dileep Srivastavasays the company targets to control 30‐40%of the global coal market by 2013. “We willnot looking for bank loans or money fromany financial institution. We have no planto issue bonds as well. It will be whollyfrom our internal cash.”China climate change targetsFOR the first time in a five year plan, China’sCongress has established targets to tackle climatechange. It plans to reduce carbon dioxideemissions per unit of GDP by 17% from2010 levels by 2015 and reduce energy consumptionby 16% by 2015.These initiatives have been set out in adraft of the country’s 12th Five Year Plan,which covers the period from 2011 to 2015.They follow some of the measuresachieved in the 11th plan during whichChina reached a 19.1% reduction in energyintensity, out of a planned 20%, and produced9.1% of primary energy from nonfossilfuel sources, achievements wereimproved by a number of last minutemeasures in late 2010 that saw a number oflocal officials implement blackouts andforced factory closures.Tackling climate change will not be easyin a country that is growing fast and whosepopulation is increasingly embracingurbanization, industrialization and commercialization.Power consumption is soaring and in thefirst two months of 2011 reached 702.2TWh,12.3% higher than 2010. It is estimated thatthis year’s total consumption will reach4600TWh, up 10% on 2010.In a bid to meet energy demand, the 12thplan sets out aggressive energy targetswhile inefficient coal plants will continueJune 2011 l Coal Age Asia l 5

NewsPetrocom Energy’s CBF plant in Lianyungang, China.to be phased out. About 70GW of inefficientcoal‐fired capacity was phased out inthe 11th plan and 8GW is scheduled to bephased out this year.The new plan includes an increased percentageof ‘new energy’ consumption, witha target of 11.4% by 2015.New energy includes cleaner coal andcoal‐bed methane power projects as well assmart grid projects. About 40GW of this wasexpected to come from nuclear power by2015 but after the Japanese nuclear crisis,China’s media has reported that plans havebeen pulled back to 80GW from the 90GWpreviously expected to be built by 2020.The new plan also calls for a 75GWexpansion of new hydroelectric capacity, a13GW to 33GW surge in gas generationand 90GW in new wind capacity, 5GW ofwhich is to be offshore wind.Despite the plans for cleaner energy,China will continue to source a majority ofits power from coal and plans to add anestimated 260GW of coal power by 2015,which will see coal’s share to fall to 63%from the current 72%. The government islikely to better control coal industrygrowth and will cap annual productioncapacity at 3.8 billion tonnes by 2015, upfrom the current capacity of 3.2 billion.Coal blending for IndonesiaINDONESIAN electricity provider PT PLNhas signed a memorandum of understandingwith Hong Kong‐based PetrocomEnergy Ltd (PEL) to conduct a joint studyon the construction of PEL’s Coal BlendingFacilities (CBF) in Indonesia.PEL has patented CBF technology whichinvolves the process of blending coal of differentspecifications in a controlled mannerto produce coal that is acceptable for commercialuse, primarily in coal‐fired powergenerators. Much of the coal that can betreated in this manner is unacceptable tothe market in its raw state.The benefits of high quality coal blendinginclude better fuel efficiency, lower sulphur,lower emissions of nitrogen oxide, bettercaloric value and, most importantly, lesspollutants. The low‐grade coals can bemixed with better grade coal without deteriorationin the thermal performance of boilers,thus reducing the cost of generation.As one of world’s leading coal suppliers,Indonesia has an opportunity to capitalizeon an exponentially growing coal exportmarket. PT PLN is responding to this challengeby adding another 10GW of capacitybetween 2012 and 2014. In coming years asmore market compliant coal is exportedand consumed domestically, the quality ofthe remaining coal reserves becomes lesscompliant, less marketable and less usable.The need for a reliable method to extendthe life of reserves has prompted PT PLNto examine the CBF technology.In China PEL, in collaboration with governmentsat national, provincial and locallevels, has identified 25 prospective locationsto build the CBFs and PEL aims tobuild 100 plants in China in the next fiveyears. Its first CBF in China, Lianyungang,began commissioning in May 2008.Working with Dutch engineering firmIV‐Bouw, PEL is building CBFs in Chinabased on the proven design of EMO CBF atEurope’s largest coal terminal, EMORotterdam.The EMO CBF was designed and built byIV‐Bouw and has been in successfully operatingsince 1994. It supplies blended coal ofhigh and consistent quality to power plantsin the Netherlands and Germany.Strong Indonesian CBM pushINDONESIA’S coal bed methane (CBM)industry appears to be following in the footstepsof the coal industry with new areasbeing opened up, exploration gatheringpace and production starting.Development of the industry comes in thewake of government wishes to curb thecountry’s dependence on oil‐based energysources by seeking new and renewableenergies.Companies are supporting the CBMpush with local and international energyindustry players becoming involved inKalimantan as well as Sumatra, areaswhich also boast major coal reserves.Nine new CBM cooperation contractshave recently been signed by the governmentand these were among 14 new oil, gasand CBM contracts signed in the hope ofboosting exploration activities to crank upthe country’s oil and gas production.Indonesia’s Energy and MineralResources Minister Darwin Zahedy Salehsaid the total investment for exploration inthe first three years would top US$68.95million with the government receiving$16.9 million from signing bonuses.Of the nine CBM blocks, three weredirectly offered to potential operators,while the operators of the remaining sixblocks were decided in auctions.The three directly offered blocks are theTanjung IV block in Central Kalimantan,which was awarded to a consortium of PTPertamina Hulu Energi (PHE), MetanaTanjung IV and BP Tanjung IV, the MuaraEnim II block in South Sumatera, awardedto a consortium of PT PHE MetanaSumatera 5, PT Metana Enim Energi andPT Indo CBM Sumbagsel 2, and the MuaraEnim block III, awarded to a consortium ofPT PHE Metana Sumatera 4 and PTBaturaja Metana Indonesia.Three of the six auctioned blocks arelocated in Central Kalimantan ‐ Kapuas I,Kapuas II and Kapuas III. A consortium ofPT Transasia CBM and BP Kapuas I wonthe auction of the first block, a consortiumof PT Kapuan CBM Indonesia and BPKapuas II won the second, and a consortiumof PT Gas Methan Utama and BPKapuas III took the third.The remaining three blocks are the KutaiTimur block in East Kalimantan, whichwas won by a consortium of Senyiur CBMand Total E&P Kutai Timur, the Kutai Baratblock in the same province, won by PT GasMethan Abadi, and the Sijunjung block inWest Sumatera, won by a consortium ofInti Gas Energi and PT Bukit Asam. Thetotal investment for the nine blocksamounted to $42.55 million with a totalsigning bonus of $11.3 million.PHE’s president director Dwi Martonosaid the signing showed that the companieswere seriousness about supporting thegovernment of Indonesia in developingnew and renewable energies to curb thecountry’s dependence on oil‐based energysources. “We hope that this strategy cantackle the gas supply shortfall.”BP, which secured four CBM blocks, saidin a statement that it had significant experienceand expertise in the development ofunconventional gas, including CBM, andlooked forward to apply this in tappingIndonesia’s coal resources.6 l Coal Age Asia l June 2011

NewsMeanwhile, Dart Energy has reportedthe first CBM gas flows at the SangattaWest project in East Kalimantan, which isamong the first in Indonesia from a dedicatedCBM pilot well.The SCBM1 pilot well began flowing gasin a controlled operation on March 25 afterthe installation of a down hole pumpsimultaneous with the dewatering process.Continual gas flow has been sustainedsince then.Dart intends the gas produced from thewell will initially be sold under anapproved pilot‐to‐power scheme. Dart’soperating partner in Sangatta West,Ephindo, has signed an MoU with GW andlocal gas‐fired genset supply company,Navigat, with an aim to supply gas‐firedelectricity to the local grid.Dart and Medco Energy, co‐owner of theMuralim CBM PSC in South Sumatra, arein talks with state‐owned electricity companyPT Perusahaan Listrik Negara (PLN)for CBM supply to their existing gas‐firedor dual‐fired power plants in SouthSumatra.Prophecy seeks new landPROPHECY Resource Corp intends acquiringan exploration licence adjacent to itsUlaan Ovoo project in northern Mongolia.The company has entered into an optionagreement with a private Mongolian companyholding the licence.The new land northeast of Ulaan Ovoo.The agreement grants Prophecy the rightto acquire 100% ownership for US$2 millionwithin the first year, or US$4 million inthe second year of the execution of theagreement.The 4773‐hectare property has an existing,fully transferable exploration licence17km northeast of the producing UlaanOvoo coal mine.It is contiguous to Prophecy's existingexploration licence covering 7392 hectares.These exploration licenses are in the samestructural basin as the company’s UlaanOvoo mine.Recent reconnaissance programs includinggeophysical work to date indicates thepresence of shallow sedimentary rocks upto 100 metres in thickness, which demonstratesthe potential for coal discovery.Prophecy plans to begin drilling on theproperty in June 2011.Prophecy paid the owner US$200,000 inApril upon signing the agreement and hasthe right the right to acquire the propertyThe opening ceremony for Prophecy’s Ulaan Ovoo projectbefore April 21, 2012, by payment of a furtherUS$1.8 million with 50% payable inProphecy shares; or by April 22, 2013 bypayment of a further US$500,000 on April22, 2012, and US$3.3 million before April21, 2013 with 50% of the final amountpayable in Prophecy shares.A 2% net royalty on production from theproperty is payable to the seller, which canbe purchased at any time at Prophecy's discretionfor US$1 million on or before April21, 2013. Half of the royalty purchase priceshall be payable through the issuance ofProphecy shares.Prophecy Resource Corp is an internationallydiversified company engaged indeveloping energy, nickel and platinumgroup metals projects.The company controls more than 1.4 billiontonnes of surface minable thermal coalresources in Mongolia. Its Ulaan Ovoo coalmine is fully operational and itsChandgana mine mouth power plant isbeing permitted.8 l Coal Age Asia l June 2011

IndonesiaPAN ASIA AND KOPEX ACCELERATE TCMA PARTNERSHIP between emerging Aust ‐ra lian resources company Pan Asia Corp or ‐ation and international underground coalmining group Kopex is accelerating developmentof the TCM Coal Project in SouthKalimantan. TCM boasts JORC resourcesof 53.2 million tonnes of high calorific thermalcoal, including 22.4 million indicatedtonnes and 30.8 million inferred tonnes.Pan Asia has recently updated the TCMresource from the initial 30 million tonnesto the current figure and is confident of furtherexpanding the resource through anaggressive exploration campaign, which isbeing co‐funded by Kopex. TCM covers3440 hectares in the Mantewe District ofTanah Bumbu Regency and has a government‐approvedIUP production licencegranted for 15 years which is extendablefor a further two 10‐year periods underIndonesia's new mining laws. It is close towell established infrastructure which currentlyservices the nearby ATA mine operatedby PT Arutmin.Kopex is co‐funding an accelerated infilldrilling program and a bankable feasibilitystudy in return for pre‐emptive rights toparticipate in the project. It has just releasedresults on preliminary studies at the site.Pan Asia’s CEO Alan Hopkins says,“Having a closer engagement with a largeexperienced underground coal operatorwith the ability to deliver TCM to productionwas a major step forward in advancingthe project. Kopex is a world leader inunderground coal mining with the capacityto undertake mining operations as wellas providing the required mining equipment.Kopex has recognized the value ofour TCM project and we are now ahead ofschedule as we move through to the bankablefeasibility study.”Results of phase two drilling, which tookplace earlier this year, reveal the quality ofthe coal has an average calorific value of6566 kcal/kg (ADB), 6.41% total moisture,13.52% ash and 1.52% sulphur. This compareswith quality tests from the first phaseof drilling which showed an averagecalorific value of 6682 kcal/kg, 4.64% totalmoisture, 12.09% ash and 1.83% sulphur.Alan Hopkins says “The TCM projectfeatures strongly in our corporate strategyto be a major supplier of key resources intothe expanding Asian markets. The substantialincrease in the project’s JORC resourcePan Asia’s TCM concession is adjacent to PT Arutmin’s ATA coal operations.estimate is great progress. We are confidentthis project has great potential to re‐rate thecompany, and we look forward to movingforward rapidly to the next phase.”The company will use underground, longwallmining techniques to exploit the coalreserves and Kopex is preparing a preliminaryengineering study to outline the anticipatedoptimum scale of the operations.Alan Hopkins says the country’s investmentlaws only opened up in 2009, makingit an opportune time to be getting involvedin local projects. The company’s managersspent much of last year travelling betweenthe Subiaco office in Western Australia andKalimantan to investigate the potential ofIndonesia’s untapped deposits. Pan Asianow boasts several Indonesian partners ona range of prospective local coal projects.“Our whole approach to Indonesia is it’s acountry that‘s resource‐rich and well locatedto the Asian market.”Pan Asia is building a portfolio of coaland manganese assets in Indonesia withthe aim of being a top tier resources companywithin the next three years. The company,which began life as a seafood supplybusiness, is advanced in its aim to acquire anumber of significant coal assets, after onlylodging a prospectus with the AustralianSecurities and Investment Commission(ASIC) last November.Its current diversified portfolio of assetsincludes TCM, a flagship exploration projectwith a large tonnage target, and cashflowprojects to finance existing productionat mines including the Nadvara open pitproject in East Kalimantan, where Pan Asiais contracted to sell 4.8 billion tonnes ofcoal over the next four years.Pan Asia dan Kopex percepat TCMKERJASAMA antara sebuah perusahaanpertambangan baru Australia, Pan AsiaCorporation dan grup pertambangan batubara dunia Kopex telah mempercepatperkembangan Proyek Batubara TCM diKalsel. TCM mengetengahkan 53.2 jutatonnes batubara berkalori tinggi dari sumberJORC, termasuk 22.4 juta tonnes terindikasidan 30.8 juta tonnes estimasi.Baru‐baru ini Pan Asia telah mening ‐katkan hasil TCM dari 30 juta tones ke angkaterkini dan mereka yakin akan peningkatansumber ini melalui eksplorasi yang agresifyang dibiayai bersama dengan Kopex. TCMmencakup 3440 hektar di KecamatanMantewe Kabupaten Tanah Bumbu danmemiliki izin produksi IUP dari pemerintahuntuk selama 15 tahun yang menurutUndang‐undang RI dapat diperpanjangselama dua periode masing‐masing 10tahun. Lokasinya pun berhampiran denganinfrastruktur lengkap yang pada waktu inihanya digunakan oleh pertambangan ATAyang dikelola oleh PT Arutmin.Kopex ikut membiayai pencepatan programdrilling infill dan studi kelayakanbankable dengan imbalan kesempatan awalikut serta dalam proyek tersebut. Merekabaru saja menerbitkan hasil dari studi awalmengenai lokasi itu.10 l Coal Age Asia l June 2011

IndonesiaDirut Pan Asia Alan Hopkins mengatakan:“Mempunyai hubungan dekat dengansebuah operator batubara bawah tanahyang berpengalaman dan mampu memproduksiTCM adalah langkah maju yang besardalam meningkatkan proyek ini. Kopexadalah pemimpin dunia dalam hal pertambanganbatubara bawah tanah dengankemampuan melaksanakan operasi pertambangandan menyediakan sarana pertambanganyang diperlukan. Kopex telah mengakuinilai proyek TCM kami dan saat kamimenyelesaikan studi kelayakan bankable ini,kami berada didepan jadwal.Hasil dari pemboran tahap kedua yangdilaksanakan awal tahun ini, memperlihatkanmutu batubara yang mempunyainilai kalorifik rata‐rata sebesar 6566 kcal/kg(ADB), keseluruhan kelembaban 6.41%,13.52% abu dan 1.52% sulfur ketimbangujian mutu dari pemboran tahap pertamayang menunjukkan nilai kalorifik rata‐ratasebesar 6682kcal/kg, keseluruhan kelembaban4.64%, 12.09% abu dan 1.83% sulfur.Kata Alan Hopkins:”Dalam Strategi Peru ‐sahaan kami Proyek TCM ini dilihat sebagaipemasok besar dari hasil‐hasil tambangutama di pasaran Asia yang terus berkembang.Estimasi peningkatan sumber JORCyang substantive adalah kemajuan yang sangatbaik. Kami yakin bahwa proyek ini mempunyaipotensi besar untuk memugar kembaliperusahaan, dan kami mendambakanpergerakan cepat ke tahap yang berikut.”Perusahaan akan menggunakan teknikteknik tambang long‐wall bawah tanah bagimengeksploit batubara, sedangkan Kopexsedang menyiapkan studi teknik awal untukmemperkirakan skala operasi yang optimum.Kata Alan Hopkins undang‐undanginvestasi negara baru keluar pada tahun2009 sehingga sekarang waktunya tepatuntuk berpartisipasi dalam proyek‐proyeksetempat. Tahun lalu para manajer kamisibuk mundar mandir antara kantor kami diSubiaco di Australia Barat dan Kalimantanmenyelidiki potensi cadangan tambang diIndonesia. Pan Asia sekarang mempunyaibeberapa mitra local dalam berbagai proyekbatubara setempat. “Pendekatan kami ialahbahwa Indonesia adalah sebuah negarayang kaya sumber tambang dan terletaksecara strategis di pasaran Asia.”Pan Asia sedang membangun portfolioasset batubara dan manganese di Indonesiadengan tujuan untuk menjadi perusahaansumber tambang teratas dalam waktu tigatahun. Bermula sebagai bisnis mensuplaimakanan laut, perusahaan ini sekarang telahmapan dalam rencananya mendapatkanbeberapa asset batubara yang signifikan,setelah baru saja memasukkan prospektuske Komisi Sekuritas dan Investasi Australiadi bulan Nopember yang lalu.Pada waktu ini potfolio asset beragamnyatermasuk TCM, sebuah proyek eksplorasiflagship dengan tonnase yang besar danproyek‐proyek tunai untuk membiayai produksiyang ada di tambang‐tambang termasukproyek tambang terbuka Nadvara diKalTim. Disini Pan Asia telah diberikan kontrakuntuk menjual 4.8 milyar tonnesbatubara selama empat tahun kedepan.Kangaroo coal resources leapUPDATED JORC coal resource and reservestatements indicate that Kangaroo Resourceswill have total resources of 3.146 billiontonnes at three projects upon completion ofthe transaction for the Pakar project with PTBayan Resources. There are 3.019 billiontonnes of resources for Pakar, including totalopen cut reserves of 442 million tonnes, 10.49million tonnes of resources for Mamahakand 117 million tonnes of resources for theGPK project. The projects have a variety ofcoal types ranging from low‐rank thermalcoal to coking coal.Kangaroo has formed a strategic alliancewith Bayan which involves an offtake fromMamahak and purchase of the Pakar project.The Pakar transaction is advancing with anindependent expert’s report being compiledand due diligence being carried out. It isexpected that the transaction will be completeduring this quarter pending finalshareholder approval.Kangaroo is acquiring 99% of Pakar fromAerial view of Kangaroo’s Pakar project.Bayan for $277 million in an all script dealwhich will see Bayan emerge with a 57%stake in the Australian‐listed producer.Bayan has started work targeting the fasttracking of initial production, includingmine optimization studies, bathymetric andhydrographic surveys, preparation of tenderingdocuments to appoint subcontractorsto complete on‐site infrastructure, and preliminarywork in ordering equipment for thestart of operations following completion ofthe transaction.Kangaroo has also finalized a new salescontract with Bayan for coal from the Mama‐June 2011 l Coal Age Asia l 11

Indonesiahak Coking Coal project in East Kalimantan.The one‐year contract is for coal sales of upto 300,000 tonnes at a market price, FOBMamahak jetty. Coal haulage continues toramp up at Mamahak with the completion ofthe mobilization of additional haulagetrucks. The company reported total coalsales of 34,946 tonnes during the Marchquarter. Kangaroo and Bayan have beenworking together to ramp up Mamahakoperations and this has resulted in progresstoward increasing production rates.As well as additional new equipment,other operational improvements include initialupgrading of the capacity of the bargeloader, recruiting additional staff and thesubmission of additional forestry permitapplications to open up new mining areas.The companies are designing an explorationprogram targeting an expansion of theupdated JORC resource estimate. This workwill provide the basis for definition ofreserves with a target of increasing currentproduction levels.The updated GPK resource of 117 milliontonnes includes 58 million indicated tonnesand 59 million inferred tonnes. More than95% of the resources lie at depths less than 60metres, increasing the potential for a highlevel of conversion of resources to reserves.Kangaroo plans to conduct a limiteddrilling program at GPK targeting specificareas of the concession with the aim of utilizingthis data to increase the level of confidencein the geological model used for thecurrent resource and to prepare a JORCreserve statement to support the planneddevelopment of mining operations.Cadangan batubara Kangaroo’smelompat naikPERNYATAAN‐pernyataan JORC terkiniakan sumber dan cadangan batubara memberikanindikasi bahwa Kangaroo Resourcesakan mempunyai 3.146 milyar tonnes sumbertambang di tiga proyek dengan selesainyatgransaksi untuk Proyek Pakar denganPT Bayan Resources. Pakar mempunyai3.019 milyar tonnes sumber tambang, termasukcadangan total tambang terbuka sejumlah442 juta tonnes, 10.49 juta tonnes dariMamahk dan 117 juta tonnes di proyek GPK.Proyek‐proyek ini terdiri dari beberapamacam jenis batubara dari batubara thermalberdaya rendah ke batubara coking.Kangaroo telah membentuk hubunganstrategis dengan Bayan menyangkut offtakedari Mamahak dan pembelian proyek Pakar.Transaksi Pakar terus berlangsung dengansebuah laporan independen seorang ahlisedang disiapkan dan ‘due diligence’ telahdilaksanakan. Diperkirakan transaksi iniakan selesai dalam kwartal ini menunggupersetujuan pemegang saham.Akuisisi Kangaroo sebanyak 99% Pakardari Bayan memakan biaya $277 juta semuadalam bentuk kertas dan ini akan memungkinBayan mempunyai 57% dari produsenyang terdaftar di Australia tersebut.Bayan telah memulai kerja‐kerja mempercepatproduksi awal, termasuk studi‐studioptimisasi tambang, survey‐survei bathymetricdan hydrographic, persiapan dokumen‐dokumentender bagi menunjuk subcontractor‐subcontractoruntuk menyiapkaninfrastruktur lapangan dan kerja‐kerja awalmemesan alat‐alat untuk memulai operasibegitu transaksi selesai.Kangaroo juga telah menyelesaikan kontrakpenjualan baru dengan Bayan untukbatubara dari proyek batubara cokingMamahak di KalTim. Kontrak setahun ituadalah untuk penjualan sampai dengan300,000 tonnes dengan harga pasaran, FOBpelabuhan Mamahak.Operasi pengangkutan batubara terusmeningkat di Mamahak dengan siapnyamobilisasi truk pengangkutan tambahan.Dalam kwartal Maret dilaporkan bahwapenjualan batubara berjumlah keseluruhan34,946 tonnes. Kangaroo dan Bayan telahbekerjasama meningkatkan operasi‐operasimereka yang menghasilkan peningkatantaraf produksi.Disamping penambahan alat‐alat baru,perbaikan‐perbaikan operasi yang lain termasukpeningkatan permulaan dari kapasitastongkang loader, pengambilan staftambahan dan membuat tambahan permohonan‐permohonankehutanan untuk izinmembuka area‐area pertambangan baru.Perusahaan‐perusahaan tersebut sedangmempersiapkan program eksplorasi menjurukepada pembaruan estimasi pengembangantambang JORC. Kerja ini akan menyediakandasar untuk definisi cadangan yangberperan meningkatkan taraf produksi.Angka tambang GPK yang berjumlah 117juta tonnes terdiri dari 58 juta tonnes nyatadan 59 juta tonnes diperkirakan. Lebih dari95% sumber tambang berada dikedalamankurang dari 60 meter dan ini meningkatkanlagi kemungkinan konversi hasil tambangke cadangan.Kangaroo berencana untuk melaksanakanprogram pengeboran terbatas di area‐areatertentu dengan maksud menggunakan dataini bagi meningkatkan keyakinan padamodel geologis untuk sumber tambangpada waktu ini dan menyiapkan pernyataancadangan JORC yang mendukung perkembanganoperasi pertambanganCoal loading at the Mahakam River.Challenger advances strategyCHALLENGER Deep Resources is advancingits strategy to establish a portfolio of coalexploration projects and progress the projectsto production stage. It is fulfilling itsaims in coal‐rich areas of Kalimantan.The Canadian‐based company has identifieda number of near‐term productionopportunities, is negotiating several acquisitionsand is exploring the Tabang project inEast Kalimantan.Phase one exploration at Tabang has providedevidence of at least eight separateseams in the northern half of the property. Ascout drill program is being undertaken totest the quality, continuity, width and numberof coal seams at depth.Exploration to date has included geologicmapping, outcrop sampling, trenching andexcavation of test pits. Work completed covers55% of the project area and has focusedon the north and central parts.As well as drilling, the ongoing programincludes outcrop mapping of the remainderof the property, excavation of test pits to fullyexpose foot wall and hanging wall of coalseams and interpretation of results. Thescout drilling includes at least 1000 metres ofdrilling in 25 to 30 holes.Through its exploration, Challenger hasdiscovered 56 coal outcrops. Preliminaryinterpretation of the outcrops coal is that atleast eight separate seams are evident. Thewidth and number of seams cannot be confirmeduntil initial drilling has been completed.Based on the sample analysis performed,coal quality is in the 5000‐6000 Kcal/kg range.This quality of coal is highly marketable.The 2900ha Tabang project is in theRegency of Kutai Kartanegara. The area isaccessible by vehicle with well establishedlogging roads and is close to the BelayanRiver, a major tributary of the Mahakam,which is the coal transport route to MuaraJawa, the anchorage point for mother vesselsand export to market.Challenger Deep’s wholly‐owned subsidiaryPT Bestindo Energy has entered intoa Memorandum of Understanding with the12 l Coal Age Asia l June 2011

Indonesiaprincipal shareholder of PT Bara MandiriUtama (PT BMU) which may lead to the purchaseof a project in East Kalimantan. TheMoU gives Challenger the exclusive right topurchase all shares of PT BMU through executionof a Conditional Share PurchaseAgreement (CSPA).PT BMU is a private Indonesian companywhich owns four contiguous IUP applicationsof between 91 and 98.7 hectares in theSamboga District, Regency of KutaiKartanegara. The project is on the coast, justsouth of the Mahakam estuary. The area coversthe Kampung Baru geological formationwhich is known to host thick seams of mediumCV thermal coal.Coal outcrops have been observed on theproject area, however quality and extenthave not been confirmed. The area is immediatelyadjacent to an independent coal loadingterminal which is under construction,with a multi‐use haul road passing directlythrough the project. The target for the area islow strip ratio, marketable thermal coalstrategically located with adjacent port andhaul facilities.Challenger memajukan strategiCHALLENGER Deep Resources sedangmemajukan strateginya untuk membangunsebuah portfolio proyek‐proyekeksplorasi batubara dan membawanyake taraf produksi. Ia memenuhi citacitaini di kawasan‐kawasan kayabatubara di Kalimantan.Perusahaan yang berkedudukan diKanada ini telah menidentifikasi beberapapeluang produksi dalam jangkapendek, sedang membicarakan beberapaakuisisi dan tengah mengeksplorasiproyek Tabang di KalTim.Tahap pertama dari eksplorasi diTabang telah memberikan buktiadanya delapan lapisan terpisah dibagian utara dari tanahnya. Sebuah programbor cobaan sedang dilaksanakanuntuk menguji mutu, kontinuitas, lebar danjumlah lapisan batubara di dalamnya.Sampai saat ini eksplorasi termasukpemetaan geologis, membuat sampel hasil,penggalian jalur dan ekskavai lubang uji.Kerja‐kerja yang sudah selesai menyangkut55% dari kawasan proyek dan bertumpu inbagian‐bagian utara dan tengah.Disamping pemboran, program selanjutnyatermasuk pemetaan hasil dari selebihnyakawasan, ekskavasi lubang uji untukmendedahkan total tembok kaki dan tembokgantung dari lapisan batubara dan interpretasidari hasil‐hasilnya. Bor cobaan termasukpaling sedikit 1000 meter pemborandi 25 sampai 30 lubang.Melalui eksplorasinya, Challenger telahmenemukan 56 hasil batubara. Interpretasiawal dari hasil‐hasil batubara ini menunjukkandelapan lapisan terpisah. Lebar danjumlah daripada lapisan‐lapisan tidak dapatdikonfirmasi sebelum pemboran awal selesai.Berdasarkan analisa sampel yang sudahdilaksanakan, mutu batubara adalah antara5000‐6000 kcal/kg. Mutu batubara demikiansangat dapat dipasarkan.Proyek Tabang seluas 2900 ha ini beradadi Kabupaten Kutai Kartanegara. Daerahnyadapat didatangi dengan kendaraan, mempunyaijalan‐jalan pengangkutan kayu dandekat dengan Sungai Belayan, sebuah anaksungai besar dari Sungai Mahakam, yaitujalur pengangkutan batubara ke MuaraJawa, dermaga untuk kapal‐kapal besar danekspor ke pasaran.Anak perusahaan yang keseluruhannymilik Challenger Deep, PT Bestindo Energytelah membuat MoU dengan pemegamsaham utama PT Bara Mandiri Utama (PTBMU), hal yang menuju kepada pembeliansebuah proyek di KalTim. MoU ini memberikanhak eksklusif kepada Challengeruntuk membeli semua saham‐saham PTBMU dengan mengeksekusi perjanjianConditional Share Purchase (CSPA).Pre-stripping work at Orpheus Energy Group’sB26 Coal Project in East Kalimantan.PT BMU adalah sebuah perusahaanswasta Indonesia yang memiliki empat permohonanIUP berantai antara 91 dan 98.7hektar di Kecamatan Samboga, KabupatenKutai Kartanegara. Proyek ini terletak dipesisir, di selatan muara Mahakam.Kawasan ini termasuk formasi geologisKampung Baru yang diketahui mempunyailapisan tebal batubara DV thermal.Hasil batubara telah nampak di kawasanproyek, namun mutu dan jumlah belumdapat dikonfirmasi. Kawasannya langsungberdampingan dengan dermaga menaikkanbatubara independen yang sedang dibangundengan sebuah jalan pengangkutanmulti guna langsung liwat proyek ini.Tujuan dari kawasan ialah rasio pembersihanyang rendah, batubara yang mudahdipasarkan yang terletak secara strategis danberdampingan dengan sarana pelabuhandan pengangkutan.Trial shipment from B26TRIAL mining is progressing at OrpheusEnergy Group’s joint venture B26 CoalProject in East Kalimantan with coal loadedonto barge loaders in Longbok River, EastKalimantan, ready for trial shipment.The trial shipment forms part of the supplyof coal under an offtake agreement forthe first 25,000 tonnes which has alreadybeen paid with an advance of US$500,000.Orpheus and its Indonesian joint venturepartner PT Mega Coal International continueto progress operations at B26 with heavyearth moving machinery continuing to prestrip the overburden to expose the coalallowing trial mining.The joint venture partners are also undertakinga drilling program to advance theexisting database and mine plan to JORCstandard for conversion to a JORC classifiedresource. The drilling is testing areas of morecomplex structure and other features whichmay affect seam continuity within and outsidethe current mining area at B26.Orpheus has also signed a furtherjoint venture agreement with PT MegaCoal in relation to five exploration tenementsat the Kintap Coal Project,which are prospective for export qualitythermal coal. The Joint Venturedeed provides for Orpheus to spendUS$750,000 on exploration and a minefeasibility study with a view to earlycoal production. Upon a JORC measuredresource being establishedOrpheus is to pay US$0.50/tonne ofcoal to Mega in consideration of Orpheusreceiving 50% of the joint venture.Orpheus Energy Group is a whollyownedsubsidiary of Australian‐listedCoalworks and is proposed for divestmentthis year into a separate listed companycalled Orpheus Energy. As part of the listingproposal, Coalworks will receive 35 millionshares in the new company.Coalworks says lodgement of the Orpheusprospectus is pending and the proposed listingis expected to take place shortly.Orpheus Energy recently raised $3.45 millionthrough a private placement of unlistedconverting notes which are expected to convertinto shares on or after the listing.As well as the B26 project, the divestmentby Coalworks will see Orpheus take on the14 l Coal Age Asia l June 2011

IndonesiaHodgson Vale Thermal Coal Project in southeastQueensland and the Ashford LimestoneProject in northern New South Wales. Thedivestment will allow Coalworks to focus onits core Australian properties.Percobaan pengapalan dari B26PERCOBAAN penambangan sedang berjalandi Proyek patungan Batubara B26Orpheus Energy Group di KalTim denganmemuatkan batubara ke tongkang loaders diSungai Longbok, Kal Tim, siap untuk percobaanpengapalan.Percobaan pengapalan ini adalah sebagiandari pengiriman batubara di bawah perjanjianpembelian 25,000 tonnes pertama yangtelah dibayar dengan uang muka sebesarUS$500,000.Orpheus bersama mitra patungannya PTMega Coal International terus beroperasi diB26 menggunakan mesin‐mesin berat pengalihtanah membuang timbunan diatasbatubara supaya dapat memulai mencobamenambang.Para mitra patungan juga melaksanakanprogram pemboran bagi meningkatkanpangkalan data dan rencana penambanganke taraf JORC untuk diklasifikasi sebagaitambang JORC. Dengan pengeboran inidaerah‐daerah berstruktur dan mempunyaicirri‐ciri yang kompleks dapat diujiperiksakarena ini dapat mempengaruhi kesinambunganlapisan tambang di dalam dan luardaerah pertambangan B26.Orpheus juga telah menandatangai perjanjianpatungan dengan PT Mega Coal mengenailima daerah eksplorasi di ProyekBatubara Kintap yang mempunyai kemungkinanuntuk mengekspor batubarabermutu. Perjanjian tersebut menyetujuiOrpheus mengeluarkan biaya sebanyakUS$750,000 untuk studi penambangan dankelayakan dengan maksud produksi awalbatubara. Begitu pengukuran JORC menjadikenyataan Orpheus akan membayarUS$0.50/tonne batubara ke Mega denganpertimbangan bahwa Orpheus menerima50% dari hasil patungan tersebut.Orpheus Energy Group adalah anakperusahaan yang dimiliki penuh ofCoalworks yang terdaftar di Australia yangtahun ini direncanakan untuk divestasi menjadiperusahaan terpisah yang juga terdaftar.Sebagai bagian dari rencana pendaftaran,Coalworks akan menerima 35 juta saham didalam perusahaan baru itu.Coalworks mengatakan bahwa pengajuanprospektus Orpheus sedang diproses danrencana pendaftaran akan berlangsungdalam waktu dekat.Baru‐baru ini Orpehus Energy berhasilAn aerial view of the camp site at Churchill’s East Kutai Coal Project.mendapatkan $3.45 juta melalui penukarantunai yang diperkirakan akan ditukar kesaham‐saham setelah pendaftaran.Selain dari proyek B26, dengan divestas i ‐kannya Coalworks, Orpheus akan mendapatkanProyek Hodgson Vale Thermal Coal ditenggara Queensland dan Proyek AshfordLimestone di utara New South Wales. Inijuga akan memungkinkan Coalworks untukmenumpukan perhatian ke pertambanganbatubara di Australia.Churchill attracts investorsCHURCHILL Mining has attracted the interestof two new Indonesian partners who aresubscribing for shares worth £7.7 million fora total of 16.5% of the company. Theinvestors are Rachmat Gobel and FaraLuwia who are acquiring 19.3 million sharesat 40 pence each, a 60% mark‐up to the 20‐day average stock price.Churchill is embroiled in a legal battleover the future of its East Kutai Coal Projectin East Kalimantan, and the company hopesthe two new influential partners will help inits bid to hold onto the mine.Rachmat Gobel is the head of GobelInternational, which has partnerships withJapan’s Matsushita Corporation and is thelocal representative of Qatar Telecom, whilebusinesswoman Fara Luwia is developingone of the largest rice mills in the country inpartnership with a Swiss commodity trader.Churchill’s chairman David Quinlivansays, “They have a significant on‐groundpresence in Indonesia and Churchill believesthey will provide the local expertise and exp ‐erience necessary to advance the East KutaiCoal Project through to its production phasein the most expeditious manner possible.”Rachmat Gobel says, “I am looking forwardto working with Churchill to advancethe East Kutai Coal Project into development.I believe that this project will be a significantcontributor to East Kalimantan'seconomy and bring substantial benefits tothe region and Indonesia as a whole.”To date more than 2.73 billion tonnes ofthermal coal resource has been defined toJORC standard at East Kutai. A feasibilitystudy has been completed, indicating an economicand desirable project and the studyforms the platform for the next stage indevelopment of the project. In addition toEast Kutai, Churchill has interests in theSendawar Coal Bed Methane Project in EastKalimantan.Earlier this year Churchill completed thepurchase of land to be used as the site of thefuture port facility for the shipment of coalfrom East Kutai. The port is a key componentfor the direct access of exporting thermalcoal to the international markets.The port stockyard comprises an area ofmore than 340 hectares and will have fourstockpiles of about 500 metres each in lengthwith a total storage capacity of 852,000tonnes. Transportation of coal from the portstockyard will be by a series of conveyors onto a jetty extending 1500 metres to deepwater. The facility at the end of the jetty willbe equipped with two dedicated ship loaderscapable of annually handling 30 milliontonnes of coal.Churchill menghimbau investorCHURCHILL Mining telah menarik minatdua mitra Indonesia yang menginginkansaham seharga £7.7 juta untuk 16.5% dariperusahaan. Investor‐investor ini adalahRachmat Gobel dan Fara Luwia yang mendapatkan19.3 juta saham seharga 40 pencesatu, suatu kenaikan 60% dari harga sahamrata‐rata selama 20 hari.Churchill sedang menghadapi pertikaianhukum mengenai masa depan ProyekBatubara Kutai timur di Kaltim, dan merekaberharap kedua mitra berpengaruh ini dapat16 l Coal Age Asia l June 2011

Indonesiamembantu mereka untuk terus memiliki tambang ini.Rachmat Gobel adalah kepala Gobel International, yang bermitradengan Matsushita Corporation dari Jepang dan wakil setempatnyaQatar Telecom, sedangkan pengusaha wanita Fara Luwia tengahmembangun salah satu pabrik beras terbesar di negara itu bersamadengan sebuah pedagang komoditas Swiss.Ketua Churchill David Quinlivan berkata, “Mereka mempunyaikeberadaan setempat yang besar di Indonesia dan Churchill beranggapanbahwa mereka akan memberikan ketrampilan dan pengalamanyang diperlukan bagi memajukan Proyek Batubara KutaiTimur ke tahap produksi selekas mungkin.”Rachmat Gobel mengatakan, “Saya ingin bekerja sama denganChurchill untuk memajukan Proyek Batubara Kutai Timur ke tahappengembangan. Saya perkirakan proyek ini akan menjadi sebuahpenunjang besar ekonomi Kal Tim dan memberikan faedah‐faedahsubstantive ke daerah dan Indonesia secara keseluruhan.”Sampai saat ini lebih dari 2.73 milyar tonnes sumberdaya batubarathermal telah didefinisikan sebagai standar JORC di Kutai Timur.Sebuah studi kelayakan telah selesai, memperlihatkan bahwa proyekini diingini serta ekonomis dan menjadi landasan berikutnya bagipengembangan proyek. Di samping Kutai timur, Churchill mempunyaiandil di Proyek Methane Dasar Batubara Sendawar di KalTim.Pada awal tahun ini Churchill telah menyelesaikan pembeliantanah untuk digunakan sebagai lokasi sarana pelabuhan untuk pengangkutanlaut batubara dari Kutai Timur. Sarana ini adalah komponenkunci untuk memungkinkan pengeksportan langsung batubarathermal ke pasaran dunia.Kawasan pelabuhan mencakup lebih dari 340 hektar dan akanmempunyai empat tempat penumpukan yang panjangnya 500meter dengan kapasitas penyimpanan berjumlah 852,000 tonnes.Batubara diangkut dari kawasan penyimpanan pelabuhan ini dengankonveyor ke dermaga sejauh 1500 meter ke daerah air dalam. Dihujung dermaga akan dilengkapi dengan dua pengisi kapal yangberkapasitas 30 juta tonnes batubara per tahun.Ethica management, and access to their established services to thecoal industry in Indonesia.“The company is on track with its strategy in Mongolia andIndonesia, two countries identified for their prospective coking andthermal coal project opportunities, having recently secured a numberof significant licences in Mongolia under a similar model.”C @ mendapatkan kesempatan-kesempatanC@LTD yang berkedudukan di Australia telah menandatangani perjanjiandengan PT Ethica Trada Cermelang yang berdua akanmenumpukan perhatian kepada pencepatan identifikasi dan pembangunanproyek‐proyek batubara coking dan energi thermal tinggidi Indonesia.Ethica adalah sebuah firma jasa professional industri batubara diIndonesia yang berpengetahuan luas mengenai pasar tempatan.Perjnajian ini memberikan C@ sebuah mitra strategis yang menyediakanketrampilan setempat, kapabilitas dan bantuan setempat untukmengidentifikasi dan mengevaluasi kemungkinan‐kemungkinanpengembangan aset batubara Indonesia. Perjanjian ini sesuai denganstrategi investasi C@ untuk membangun aset batubara bermutu tinggidi Mongolia dan di Indonesia.C@ telah mulai menilai proyek‐proyek yang diidentifikasi olehEthica dan merasa optimis karena walaupun di sebuah pasarbatubara yang sudah berkembang seperti Indonesia, masih ada jalurpipa potensi proyek‐proyek.Perjanjian teras ini adalah untuk enam bulan dengan opsi untukenam bulan lagi kalau diingini oleh C@. Dalam masa ini C@ akanmembayar kembali Ethica untuk pengeluaran menyangkut kegiatankegiatanini.C @ sees opportunitiesAUSTRALIAN‐based C @ Ltd has signed an agreement with PTEthica Trada Cermelang which will see both companies focus onaccelerating the identification and development of coking and highenergy thermal coal projects in Indonesia.Ethica is a professional services firm to the coal industry inIndonesia with extensive local market intelligence. The agreementprovides C @ with a strategic partner that brings along the expertise,capabilities and local support to identify and evaluate suitableIndonesian coal asset development opportunities. The agreement isin line with C @’s investment strategy of acquiring and developinghigh quality coal assets in Mongolia and Indonesia.C @ has already started reviewing projects identified by Ethica andis encouraged that even in a relatively well established and developedcoal market such as Indonesia, a pipeline of potential projectsis still available.The Heads of Agreement is for six months with a further six monthoption available at C @’s election. During this period C @ will reimburseEthica for expenditure related to these activities.Upon identifying a suitable Indonesian coal opportunity, an unincorporatedjoint venture will be established with Ethica to acquirethe project assets with C @ to retain the majority interest in any jointventure projects. Ethica will also have the opportunity to acquire anadditional minority contributing interest in the JV.C @’s managing director Mark Earley says “The agreement bringsextensive in‐country business experience and networks through theJune 2011 l Coal Age Asia l 17

IndonesiaBegitu kesempatan batubara Indonesiayang sesuai ditemui, sebuah proses patunganyang tidak dikorporasikan denganEthica akan dibentuk bagi mendapatkanaset‐aset proyek dengan C@ terusmemegang saham mayoritas. Ethica jugamempunyai kesempatan untuk mendapatkansaham minoritas tambahan diperusahaan patungan itu.Dirut C@ Mark Earley mengatakan“Perjanjian ini menyediakan pengalamanbisnis setempat dan jaringan‐jaringanyang luas melalui manajemen Ethica, danakses untuk jasa‐jasa pada industribatubara Indonesia mereka yang sudahberkembang.“Perusahaan berada tepat waktu denganstrateginya di Mongolia danIndonesia, dua Negara yang telah diidentifikasimempunyai kesempatan‐kesempatanuntuk proyek‐proyek batubara coking danthermal, setelah mendapatkan beberapa izinsubstantif di Mongolia menggunakanmodel yang sama.”Underground operations at aCoal India mine.Coal India has eyes on IndonesiaINDIA’S biggest coal producer Coal India isleading the charge as far as Indian investmentinto Indonesia’s vast coal opportunitiesis concerned. It is investing in operating andnear‐development mines as well as valueaddingprospects as it endeavours to securesupplies to meet the sub‐continent’s demandfor power and steel.Coal India is seeking supplies fromIndonesia and other global sources as anindividual entity and as part of India’sInternational Coal Ventures Pvt Ltd (ICVL)consortium, which also comprises the SteelAuthority of India Limited (SAIL), NTPCLimited, National Mineral DevelopmentCorp and Rashtriya Ispat Nigam. SAIL andCoal India hold 28.5% each in the companyand the three others each hold 14.29%.Individually Coal India is targeting prod ‐uction of 452 million tonnes in the 2012 Ind ‐ian financial year, up from 431 million tonnesin 2011 fiscal year. To achieve these targets itis seeking bids from 16 short‐listed overseascompanies to import coal with Indonesianand Australian operations to the fore.It was recently stated during an infrastructuresummit in Jakarta that Coal India plansto invest up to US$3 billion in a coking coalmine, steel plant and sea port in Kalimantan.Central Kalimantan Governor Agustin TerasNerang said that Coal India was expected tocomplete feasibility studies on these integratedprojects centred on the province inJune. He said that the company would ‘prepare’all funds for the projects with the feasibilityfollowing the signing of agreements byall parties earlier this year.Central Kalimantan has about 4.8 billiontonnes of reserves with coking coal estimatedto represent around 40% of the total.As part of ICVL, Coal India is also confidentof gaining further supplies fromIndonesia. ICVL is believed to be close toclinching a deal to acquire a stake inSingapore‐based MEC Coal, which has substantialreserves in East Kalimantan.According to industry sources, ICVL islooking at 24% stake in MEC for aboutUS$200 million. Through its subsidiary PTTekno Orbit Persada, MEC is developingtwo coal mines in East Kalimantan with estimatedreserves of 1.5‐2 billion tonnes.Recently, ICVL signed a memorandum ofunderstanding with the Indonesian governmentfor developing mineral assets, settingup facilities and other infrastructure.Coal India punya minatterhadap IndonesiaPRODUSER batubara India terbesar CoalIndia telah menjadi pemimpin terdepaninvestasi India untuk peluang‐peluang besarbatubara di Indonesia. Mereka menginvestasidi pelaksanaan dan pra pengembangantambang‐tambang serta juga dalam prospekprospekpenambahan nilai karena merekaberniat untuk menjamin masokan‐masokanuntuk memenuhi keperluan untuk energydan besi.Coal India mencari masokan dariIndonesia dan sumber‐sumber dunia lainnyasebagai badan individu dan juga sebagaibagian dari konsorsium India yaituInternational Coal Ventures Ltd (ICVL),yang juga terdiri dari Steel Authority ofIndia Limited (SAIL), NTPC Limited,National Mineral Development Corp danRashtriya Ispat Nigam. SAIL dan Coal Indiahold masing‐masing 28.5 % dalam perusahaandan yang tigal lain memegang 14.29%.Secara individu Coal India merencanakproduksi sejumlah 452 juta tonnes padatahun finansial India 2012, meningkat dari431 juta tonnes in tahun fiskal 2011. Untukmencapai targe‐target ini ia mencari tawarandari 16 perusahaan yang sudah di daftarpendekkanuntuk mengimpor batubara denganoperasi‐operasi Indonesia dan Australiaberada dimuka.Pada sebuah KTT infrastruktur diJakarta baru‐baru ini dikatakan bahwaCoal India berencana untuk menginvestasisampai US$3 milyar di sebuah tambangbatubara coking, pabrik besi danpelabuhan di Kalimantan. Gubernur KalTeng Agustin Teras Nerang mengatakanbahwa Coal India diperkirakan menyelesaikanstudi kelayakannya dalam proyekproyektergabung berpusat di propinsinyapada bulan Juni. Katanya perusahaan ituakan menyiapkan semua dana untukproyek‐proyek itu dengan kelayakanmenyusul penandatanganan perjanjian‐perjanjianoleh semua pihak awal tahun ini.KalTeng mempunyai kira‐kira 4.8 milyartonnes sumber batubara dengan batubaracoking diperkirakan berjumlah sekitar 40%dari seluruhnya.Sebagai bagian dari ICVL, Coal India jugayakin mendapatkan masokan lagi dariIndonesia. ICVL dipercayakan sudah hampirmendapatkan andil di MEC Coal berkedudukandi Singapura yang mempunyaicadangan besar di KalTim.Menurut sumber‐sumber industry, ICVLsedang melihat kemungkinan 24% andil diMEC seharga US$200 juta. Melalui anakperusahaannya PT Tekno Orbit Persada,MEC sedang membangun dua tambangbatubara di Kal Tim dengan cadangandiperkirakan sebesar 1.5‐2 milyar tonnes.Baru‐baru ini ICVL telah menandatangaiMoU dengan pemerintah Indonesia untukmengembangkan aset pertambangan, membangunsarana‐sarana dan infrastruktur lain.Paramount and Antam sign MoUPARAMOUNT Mining has signed a comprehensiveMemorandum of Understanding(MoU) with PT Antam (Persero) Tbk whichwill enable both parties to identify prospectivecoal mining and related infrastructureprojects in Indonesia that are suitable forjoint venture projects.The agreement has been concludedbetween Antam’s recently established coalmining subsidiary, PT Indonesia CoalResources, and Paramount’s Indonesian subsidiaryPT Paramindo Energi.Paramount’s involvement starts fromexploration project identification, to developmentof mining operations and associated18 l Coal Age Asia l June 2011

Indonesiainfrastructure, through to coal market developmentand sales. At the same time, theMOU provides for a subsequent coal supplyagreement, which will give Paramountaccess to Antam’s coal production for exportto key regional markets at a time of stronginternational demand.With a market capitalization of US$2.4 billion,Antam is a leading Indonesian diversifiedmining and minerals processing company.It has identified in Paramount a partnerwith needed experience in the coal sector,and the expertise to develop key projectsfrom grass roots through to sales.The new agreement is integral toParamount’s strategy to grow its Indonesianfocusedgold and coal project portfolio.Paramount’s chairman Mo Munshi says,“We are delighted to have secured thisagreement, which we regard as a key steptoward achieving Paramount’s objectives.”In June 2010, Paramount concluded astrategic cooperation agreement withZurily Resources and Trading, aSingapore commodity trading company.In the past four decades, Antam hasgrown to become a vertically integrated,export‐oriented, diversified mining andmetals company, with operations spreadthroughout the mineral‐rich Indonesianarchipelago. Its shares are traded on theIndonesia Stock Exchange and, since 2002, onthe ASX.Antam undertakes all activities fromexploration, excavation and processingthrough to the marketing of nickel ore, ferronickel,gold, silver and bauxite. Due to thevastness of Antam's licensed explorationareas as well as its known large holdings ofhigh quality reserves and resources, Antamhas formed several joint ventures with internationalpartners to profitably develop geologicalore bodies into profitable mines.Antam recently established PT IndonesiaCoal Resources to facilitate its expansion intocoal mining and off‐taking.Paramount is an ASX‐listed, Indonesiafocusedgold and coal exploration companywith its key asset being the Gunung Julangepithermal gold‐silver project, which isabout 20km west of Antam’s multi‐millionounce Pongkor epithermal gold‐silver mine,and about 100km south‐west of Jakarta.Paramount dan Antammenandatangani MoUPARAMOUNT Mining telah menandatanganisebuah Memorandum Pengertian(MoU) yang lengkap dengan PT Antam(Persero) Tbk yang akan memungkin keduaduapihak mengidentifikasi kemungkinanpenambangan batubara dan proyek‐proyekinfrastruktur terkait di Indonesia yang cocokuntuk proyek‐oroyek patungan.Perjanjian ini telah diselesaikan anakperusahaan Antam yang baru‐baru inididirikan, PT Indonesia Coal Resources, dananak perusahaan Paramount di IndonesiaPT Paramindo Energi.Keterlibatan Paramount bermula dari iden ‐t i fikasi proyek eksplorasi, ke pembangunanoperasi‐operasi penambangan dan infrast ru ‐ktur terkait, sampai ke pengembangan pas a ‐ran batubara dan penjualan. Pada waktu ber ‐s a maan, MoU tersebut menyediakan perjanjiansuplai batubara selanjutnya, yang akanmemberikan Paramount akses ke produksibatubara Antam untuk ekspor ke pasaranpasaranutama serantau sewaktu permintaankeperluan dunia sedang sangat kuat.A thick coal seam at one of PeabodyEnergy’s coal projectsDengan kapitalisasi pasar sebesar US$2.4milyar, Antam adalah perusahaan pertambanganberagam dan pemeroses logam terdepanIndonesia. Dengan Paramount merekamendapatkan mitra yang mempunyai pengalamanyang dibutuhkan di sektor batubaradan ketrampilan mengembangkan proyekproyekinti dari dasar sampai penjualan.Perjanjian baru ini menjadi bagian terpadudari strategi Paramount dalam mengembangkanportfolio emas dan proyekbatubaranya di Indonesia. Ketua ParamountMo Mushi mengatakan, “Kami sangat gembiramendapatkan perjanjian ini, yang kamianggap sebagai langkah kunci kedepan bagimencapai objektif‐objektif Paramount.”Dibulan Juni 2010 Paramount menyelesaikanperjanjian kerjasama strategis denganZurily Resources and Trading, sebuah per u ‐sahaan perdagangan komoditas Singa pura.Selama empat dekade terakhir ini, Antamtelah berkembang menjadi sebuah perusahaanpertambangan beragam dan logamyang terpadu secara vertikal, berorientasiekspor dengan kegiatan operasi tersebar dis ‐e luruh rantau Indonesia yang kaya denganmineral. Sahamnya diperdagangkan di Jak ‐arta Stock Exchange dan sejak 2002 di ASX.Antam melaksanakan berbagai kegiatanmulai dari eksplorasi, ekskavasi danpemerosesan sampai ke penjualan hasil tambangnickel, ferronickel, emas, perak danbauksit. Oleh karena luasnya wilayah eksplorasiyang telah mendapat lisensi danbesarnya simpanan sumber tambang bermutuyang dimilikinya, Antam telah membuatbeberapa proyek patungan dengan mitrainternasional untuk mengembangkan buktibijih tambang geologis menjadi tambangtambangyang menguntungkan.Baru‐baru ini Antam menubuhkan PTIndonesia Coal Resources untuk membantuberkembang ke penambangan dan penjualanbatubara.Paramount adalah sebuah perusahaaneksplorasi emas dan batubara yang terdaftarpada ASX dan berfokus Indonesia denganaset utamanya proyek emas‐perak epithermalGunung Julang terletak 20 km di sebelahbarat tambang multi‐juta ons emasperakepithermal Pongkornya Antamdan sekitar 100 km di sebelah barat dayaJakarta.Peabody boosts coal exportsUS coal giant Peabody Energy hassigned additional coal supply agreementswhich are expected to add about6 million tonnes to its trading and brokeragesupply platform. The company is targetingtotal 2011 global sales of 245‐265 milliontonnes, including 28‐30 million tonnes fromAustralia, 195‐205 million from the US andthe remainder from trading and brokerageactivities.St Louis‐based Peabody is the world’slargest private‐sector coal company and aglobal leader in clean coal solutions. Its coalproducts fuel about 10% of US power and2% of worldwide electricity.It has recently signed an agreement withIndonesia's PT Cahaya Energi Mandiri (PTCEM) to source 2 million tonnes of coal toimprove exports. Indonesia is the world'slargest supplier of seaborne thermal coal.Coal secured from PT CEM’s EastKalimantan mine over two years will beexported to Asian countries and Peabodywill conduct exports through COALTRADE,its international trading hub in Singapore.Peabody is confident that the relationshipwith PT CEM will be expanded over time.It is the third agreement Peabody hasreached recently to source Indonesian coal,including a deal signed in December with PTSupra Bara Energi. Its coal trading and brokerageplatform continues to expand toserve high‐growth Asia‐Pacific markets andthe company says it will continue to increaseits coal sourcing in Indonesia going forward.20 l Coal Age Asia l June 2011

IndonesiaSeaborne coal demand is projected toexceed 1 billion tonnes this year with theAsia Pacific region comprising the vastmajority of demand growth. Peabody servescustomers in more than 25 countries on sixcontinents and has trading and businessoffices in Indonesia, Singapore, China,Australia, the UK and the US.Peabody meningkatkanekspor batubaraRAKSASA batubara AS Peabody Energytelah menandatangani perjanjian‐perjanjiansuplai batubara tambahan di Indonesia yangdiperkirakan menambah lebih kurang 6 jutatonnes ke landasan perdagangan dan perjualbeliansuplainya. Perusahaan inimenginginkan penjualan total di tahun 2011sejumlah 245‐265 juta tonnes, termasuk 28‐30juta tonnes dari Austrlia, 195‐205 juta tonnesdari AS dan selebihnya dari kegiatankegiatanperdagangan dan penjualbelian.Peabody yang berkedudukan di St Louisadalah perusahaan batubara sektor swastayang terbesar di dunia dan pemimpin duniadalam hal penyelesaian‐penyelesaianbatubara bersih. Hasil‐hasil batubaranyamenyediakan bahan bakar untuk kira‐kira10% dari energi AS dan 2% dari listrik seanterodunia.Baru‐baru ini ia menandatangani perjanjiandengan PT Cahaya Energi Mandiri (PTCEM) Indonesia untuk mendapatkan 2 jutatonnes batubara bagi meningkatkan ekspor.Indonesia adalah sumber terbesar duniauntuk batubara thermal.Batubara yang didapatkan dari tambangPT CEM di KalTim selama dua tahun akandiekspor ke negara‐negara Asia dan Peabodyyakin bahwa kerjasamanya dengan PT CEMakan dikembangkan lanjut di masa depan.Ini adalah perjanjian ketiga yang telahdiperoleh Peabody baru‐baru ini untukmendapatkan batubara Indonesia, termasukperjanjian yang ditandatangani pada bulanDesember dengan PT Supra Bara Energi.Landasan perdagangan dan penjualbelianbatubara nya terus meningkat bagi mem‐en ‐uhi pasaran Asia‐Pasifik yang berkembangpesat dan perusahaan ini mengatakanbahwa ia akan meneruskan peningkatanpencarian batubara di Indonesia.Permintaan batubara tahun ini diperkirakanakan melampaui 1 milyar tonnes dengankawasan Asia‐Pasifik membentuk pertumbuhankeperluan yang terbesar. Pea ‐body melayani pelanggan‐pelanggan dilebih dari 25 negara di 6 benua dan mempunyaikantor‐kantor perdagangan dan bisnisdi Indonesia, Singapura, China,Australia, UK dan AS.GMR Energy starts miningINDIAN‐BASED energy provider GMREnergy expected to start mining at its SouthSumatra project during May. The companyintends to use the coal for its thermal powerprojects in India.GMR, which is part of the Bangalore headquarteredGMR Group, hopes that coal fromits Indonesian projects will also help circumventthe volatility of prices for its coastalpower plants in India, which are largelyfired by imported coal.In 2009 GMR acquired Indonesian coalminer PT Barasentosa Lestari (PT BSL) forabout U$80 million. PT BSL held a coal mininglicence under a Coal Contract of Workissued by the Indonesian Government andthis provided a 25 year mining permit overtwo separate coal blocks in South Sumatra. Ithad coal reserves of 110 million tonnes.GMR has been seeking captive mines as itembarks on a huge expansion of its flagshipJune 2011 l Coal Age Asia l 21

Indonesiapower generation business and is setting upa range of projects in India. It has 14 powerprojects, of which three are operational providing808 MW and 11 projects for a further8448 MW are under various stages of implementation.The company hopes to have acapacity of 4261 MW on stream over the nextthree years, relying on thermal energy forgeneration. It is believed to be close to securingits second coal mine acquisition inIndonesia. The mine is expected to costabout US$150 million and has reserves ofclose to 200 million tonnes.GMR has also acquired a 33.5% stake inHomeland Energy Group (HEG) whichowns coal properties in South Africathrough its subsidiary Homeland Miningand Energy. HEG owns a controlling interestin the operating Kendal mines, fullyexplored Eloff mines and other explorationsites with total mineable reserves of around300 million tonnes.GMR Energy has also acquired EMCOEnergy, a subsidiary of EMCO Ltd, an Indianpublic limited company, which is developinga 600 MW coal based power plant, in twophases in Maharashtra.To help fund the acquisitions and expansionprogram, GMR has divested its 50%shareholding in InterGen NV to a consortiumled by China Huaneng Group for totalconsideration of US$1.232 billion. InterGenis one of the world’s leading independentpower producers with a high quality assetportfolio, including plants in the UK,Netherlands, Mexico, Australia and thePhilippines.GMR Energy mulaioperasi menambangPENYEDIA tenaga GMR Energy yangberlokasi di India diperkirakan memulaipenambangan di proyeknya di SumSeldalam bulan Mei. Mereka akan menggunakanbatubara itu untuk proyek‐proyekpembangunan tenaga thermal di India.GMR yang bagian dari GMR Groupberkantor pusat di Bangalore mengharapkanbatubara dari proyek Indonesia mereka akanmembantu pabrik‐pabrik pembangkit tenagadi pesisir mengelakkan perubahan‐perubahanharga dari batubara yang diimpor.Pada tahun 2009 GMR membeli perusahaanpertambangan Indonesia PT Bara ‐sentosa Lestari (PT BSL) seharga US$80 juta.PT BSL mempunyai lisensi penambanganbatubara melalui Coal Contract of Workyang dikeluarkan oleh pemerintahIndonesia yang memberikan izin menambangselama 25 tahun di dua blok batubaraterpisah di SumSel. Jumlah batubara yangada disini adalah 110 juta tonnes.Dalam mengembangkan bisnis pembangkittenaga listrik mereka secara besarbesaranGMR berusaha memiliki tambangtambangbatubara dan sedang membangunawkumpulan proyek‐proyek di India. Iamempunyai 14 proyek‐proyek tenaga listrik,dengan tiga telah beroperasi menghasilkan808 MW dan 11 proyek untuk membangkitkan8448 MW pada bermacam taraf implimentasi.Mereka mengharapkan akan mempunyaikapasitas 4261MW siap disalurkandalam waktu tiga tahun lagi dan semuanyaakan menggunakan tenaga uap untuk pembangkitantenaga listrik itu.Dipercayai bahwa mereka akan mendapatkantambang batubara keduanya diIndonesia dalam waktu dekat. Tambangtersebut diperkirakan akan memakanongkos sebanyak US$150 juta dan mempunyaicadangan sebesar 200 juta tonnes.GMR juga telah mendapatkan 33.5%saham di Homeland Energy Group (HEG)yang memiliki tambang batubara di AfrikaSelatan melalui anak perusahaanyaHomeland Mining and Energy. HEG mempunyaihak pengendalian tambang‐tambangKendal, telah mengeksplorasi tambang‐tambangEloff dan lokasi‐lokasi eksplorasi denganjumlah cadangan yang dapat ditambangsebanyak 300 juta tonnes.GMR Energy juga telah mengakuisiEMCO Energy, anak perusahaan EMCO Ltd,sebuah perusahaan persero India yangsedang membangun pembangkit tenagalistrik dalam dua tahap menggunakanbatubara yang berkapasitas 600 MW diMaharashtra.Untuk mendanai program akuisi‐akuisidan pembangunan, GMR telah menjual 50%dari saham mereka di InterGen NV kesebuah konsorsium dipimpin oleh HuanengGroup dari China berjumlah US $1.232 milyar.InterGen adalah sebuah perusahaanindependen pembangkit tenaga listrik ternamayang mempunyai portfolio aset bermutu,termasuk pabrik‐pabrik di UK,Nederland, Mexico, Australia dan Filipina.Realm Katingan Ria due diligenceAUSTRALIAN junior Realm Resources hassecured an option to acquire 75% of theKatingan Ria Coal Project in CentralKalimantan. The project covers 5043 hectaresunder rights to mine with due diligence andconceptual study work under way.The option occurs by way of an agreementunder which the shareholders of Kalres Ltdhave granted to Realm an option to acquireall of the issued capital in Kalres. This companyis party to a master agreement with PTCoal outcropping at a Realm property.Sinar Mulia Anugerah Aguing under whichKalres can acquire up to a 75% stake in Ind o ‐nesian coal company PT Katingan Ria, whichholds the Central Kalimantan concession.The project is in the Katingan Hulu districtand is about 175km northwest of the regionalcapital of Palangkaraya.Around 69 boreholes have been drilled byPT Katingan Ria on site and as part of thedue diligence Realm will focus on resourcedefinition and logistics. This will involveassessing the integrity of the existing borehole,resource model and quality data set aswell as extending the field mapping carriedout at the site to delineate seam outcrops andstructure. Currently four seam groups havebeen identified ranging between 1‐6 metresin thickness.Realm will also complete a drilling andcoal quality program consisting of 20‐25holes for about 1750 metres with laboratorytest work on core and surface samples. Theassessment of the deposit will be carried outin line with industry guidelines.A scoping study for the project willinclude further assessment of mining andcivil cost structures, river transport logisticsand coal marketing. Barging operations currentlyexist on the Katingan River for theforestry industry.Subject to successful due diligence, Realmintends to undertake a placement to sophisticatedinvestors to raise a minimum of $10million. The company will also continueexploration activities on its South Africanplatinum projects and it continues to assessand progress other complementary platinumgroup metals opportunities.Realm’s managing director RichardRossiter says, “Given recent record prices for22 l Coal Age Asia l June 2011

Indonesiathermal coal contracts fuelled by prolongedrobust demand out of Asia, the company’sBoard considers it to be the right time toprogress new projects within the region.”Due Diligence Realmtuntas di Katingan RiaPERUSHAN pertambangan ‘junior’Australia telah memperoleh opsi untukmengakuisisi 75% dari Proyek BatubaraKatingan Ria di Kalimantan Tengah. Proyekini meliputi 5043 hektar dengan hak menambangyang due diligence dan kerja‐kerjastudi konseptualnya tengah berlangsung.Pilihan dilaksanakan melalui perjanjian dimana pemegang saham Kalres Ltd memberikanRealm opsi untuk membeli seluruhmodal yang telah dibayar di Kalres.Perusahaan ini juga anggota dalam perjanjianutama dengan PT Sinar Mulia AnugerahAguing di mana Kalres boleh mendapatkansampai 75% interest dalam perusahaanbatubara Indonesia PT Katingan Ria yangmemegang konsensi di Kalimantan Tengah.Proyek ini berada di Kecamatan KatinganHulu lebih kurang 175 km di barat lautibukota propinsi Palangkaraya.Sekitar 69 lubang bor telah dibuat oleh PTKatingan Ria di lokasi dan sebagai bagiandari due diligence Realm akan menum puk anperhatian pada definisi tambang dan log ‐istik. Ini akan menyangkut penilaian integritaslubang bor yang ada, model tambang danmutu set data serta memperluas pemetaanlapangan di lokasi untuk menentukan hasillapisan dan struktur. Saat ini empat kelompoklapisan telah diidentifikasi yang mempunyaiketebalan antara 1‐6 meter.Realm juga akan menyelesaikan programpengeboran dan mutu batu bara yangmenyangkut 20‐25 lubang untuk sekitar1750 meter melalui percobaan laboratoriumdari sampel inti dan sampel permukaan.Penilaian tambang tersebut akan dilakukansesuai dengan garis‐garis besar industri.Sebuah studi kelayakan proyek akan men ‐y angkut penilaian lanjut struktur biaya pertambangandan sipil, logistik pengang kutanair dan penjualan batubara. Operasi‐operasipengangkutan atas air memang ada diSungai Katingan untuk industry kehutanan.Tergantung pada suksesnya due diligence,Realm bermaksud membuka tempat untukinvestor pintar bagi mendapatkan minimal$10 juta. Perusahaan juga akan melanjutkankegiatan eksplorasi di proyek platinumnyadi Afrika Selatan serta terus menilai danmemajukan kemungkinan‐kemungkinanpelengkap kelompok logal platinum mereka.Dirut Relam Richard Rossiter mengat a ‐kan, “Mengingat rekor harga kontrakbatubara thermal baru‐baru ini yangdihidupkan oleh permintaan kuat yangberkesinambungan dari luar Asia, pimpinanperusahaan beranggapan bahwa waktunyatepat untuk memulai proyek‐proyek baru dikawasan ini.”Coal FE expands AbadiCOAL FE Resources intends expandingannual production at the Abadi project inEast Kalimantan to 1 million tonnes by theend of 2011. The company and its joint ventureIndonesian partner PT Toba Jaya areproducing at a monthly rate of 50,000 tonnesbut aim to increase this to 80,000 tonnes.Coal FE’s Indonesian activities are focusedon the PT Pancaran Surya Abadi Coal Project(Abadi) where the first 50,000 tonne trialshipment of 5300 Kcal/kg calorific value coalwas scheduled during May, having beendelayed by unusually high rainfall in thefirst quarter of 2011. This hindered thehaulage of coal from the mine site to the jetty.Coal delivery targets were also affected bythe termination of the contract of the haulagesub‐contractor and replacement with a fleetJune 2011 l Coal Age Asia l 23

Indonesiaof in‐house hauling vehicles. The sub‐contractor had failed to deploythe agreed number of trucks as specified in the hauling contract. Inorder to reduce reliance on external contractors, Toba Jaya decided toestablish an in‐house hauling team with a fleet of 16 hauling trucks.The 991 hectare Abadi project is in the district of Muara Badak andAnggana, in the sub‐province of Kutai Kartanegara. It takes about 1hour by road to reach the project from Samarinda. The nearest jettyfor transportation of coal utilizing the Mahakam River is about 40kmaway. Results from a survey based on outcrops and test pits showthat there are 10 seams of coal.Coal FE entered into a joint venture agreement and mine managementagreement with Toba Jaya, an established Indonesian miningcontractor, in April 2009. Toba Jaya developed the mine infrastructureand started coal production in late 2010.In March 2010 the JV completed resource modelling and estimationin accordance with JORC guidelines. There are 33.9 milliontonnes of coal resources with 27.5 million tonnes in the measured category,5.9 million in the indicated category and 500,000 inferredtonnes. The estimate followed completion of the second phasedrilling with 50 holes penetrating to a typical depth of 50‐100 metresfrom surface. Drilling has covered just 300 hectares in the southwestof the project with the remaining 691 hectares unexplored. The partnersare confident of identifying further resources.Coal FE aims to begin the next phase of exploration at Abadi in thesecond half of 2011 and is finalizing a plan to raise capital for this.The company also has the 100 hectare Palapa project on the westernmargin of Sulawesi where the regional geology is similar toKalimantan with moderate coal production coming from the island’ssouthwest corner. Coal FE has not been able to proceed with workowing to outstanding obligations under the licence that are to be fulfilledby the owners of CV Palapa. Coal FE has negotiated with theowners to allow it to explore another concession while they settle thePalapa obligations. The new 2946ha concession is called Palapa 2.Coal FE meningkatkan produksi AbadiCOAL FE Resources bermaksud meningkatkan jumlah produksitahunan proyek Abadi di KalTim ke 1 juta tonnes akhir tahun 2011.Perusahaan ini dan mitra Indonesianya PT Toba Jaya mempunyaiproduksi bulanan sebesar 50,000 tonnes tapi bermaksudmeningkatkannya ke 80,000 tonnes.Kegiatan‐kegiatan Coal FE di Indonesia berfokus besdar padaProyek Batubara PT Pancaran Surya Abadi di mana pengapalan percobaan50,000 tonne pertama batubara bernilai kalorific 5300 kcal.kgdijadwalkan bulan Mei, setelah ditunda karena hujan lebat yangtidak disangka pada kwartal pertama 2011. Hal ini telah mengganggupengangkutan batubara dari tambang ke pelabuhan.Target pengangkutan batubara juga terpengaruh oleh dihentikannyakontrak pengangkutan sub‐kontraktor dan penggantian denganarmada kendaraan pengangkutan sendiri. Sub‐kontraktor tidakdapat mengerahkan jumlah truk yang telah disetujui dan terteradalam kontrak. Bagi mengurangkan ketergantungan pada kontraktorluar, Toba Jaya memutuskan untuk mendirikan tim pengangkutansendiri dengan armada sebesar 16 truk pengangkutan berat.Proyek Abadi sebesar 991 hektar ini terletak di Kecamatan MuaraBadak dan Anggana, di Kabupaten Kutai Kartanegara. Untuk keproyek dari Samarinda akan makan waktu satu jam. Dermaga terde ‐kat untuk mengangkut batubara menggunakan Sungai Mahakan leb ‐ih kurang berjarak 40 km. Hasil‐hasil survei berdasarkan singkapandan lubang‐lubang uji memperlihatkan adanya 10 lapisan batubara.Coal FE membuat perjanjian‐perjanjian patungan dan manajementambang dengan Toba Jaya, sebuah perusahaan kontraktor pertambanganIndonesia, pada bulan April 2009. Toba Jaya membanguninfrstruktur tambang dan memulai produksi batubara di akhir 2010.Pada bulan Maret 2010 perusahaan patungan ini menyelesaikanestimasi dan model sumberdaya sesuai dengan pedoman‐pedomanJORC. Seluruhnya ada 33.9 juta tonnes sumber batubara dengan 27.5juta tonnes dalam kategori terukur, 5.9 juta tonnes kategori indikasidan 500,000 tonnes diartikan. Perkiraan ini mengekori selesainyatahap pemboran kedua dengan 50 lubang mencapai kedalaman 50‐100 meter dari permukaan. Pemboran telah mencapai hanya 300 hektardi barat daya lokasi proyek dengan sisanya 691 hektar belum dieksplorasi.Para mitra yakin akan mendapati sumber‐sumber lagi. CoalFe berencana mem u lai tahap eksplorasi selanjutnyadi Abadi dipertengahan kedua 2011 dan sedang menyelesaikan rencana untukmendapatkan modal untuk hal ini.Perusahaan juga mempunyai 100 hektar proyek Palapa di perbatasanbarat Sulawesi dimana geologi daerahnya sama denganKalimantan dengann produksi menengahnya dating dari hujungbarat daya pulau tersebut. Coal FE belum dapat meneruskanproyekn ini karena obligasi‐obligasi yang belum terpenuhi menurutlisensi yang harus diselesaikan oleh pemilik CV Palapa. Coal FEtelah bernegosiasi dengan pemilik‐pemilik tersebut supaya merekadapat mengeksplorasi konsesi yang sudah diberikan sementaramemenuhi obligasi‐obligasi Palapa. Konsesi baru sebesar 2946 hektaritu dikenal sebagai Palapa 2.PHI acquires West Sumatra assetsPHI Energy Corporation, a minority‐owned subsidiary of PHIGroup, has signed an asset purchase agreement to acquire coal mineassets in West Sumatra from PT Dian Anugrah Pratama (PT DAP),an Indonesian corporation with headquarters in Jakarta.According to the agreement, which was signed in conjunction with24 l Coal Age Asia l June 2011

IndonesiaAXN Group LLC, PHI Energy will acquirean estimated mineable coal reserve of 10 milliontonnes in an area of about 423 hectares,at Kecamatan Kapur IX, Kabupaten LimaPuluh Kota, Propinsi Sumatera Barat,Indonesia, from DAP in exchange for 20 millionshares of common stock of PHI Energyvalued at US$1.00 per share.The closing of this transaction was scheduledto take place in early May. As part of theagreement, PHI Energy is committed to filinga registration statement with the UnitedStates Securities and Exchange Commissionto become a fully reporting publicly‐tradedcompany and will do so within 90 days followingthe closing.Sample analysis data of the coal assetsacquired show ash content of 10.66%, totalsulphur 0.97%, total moisture 4.78%, volatilematter 46.36%, fixed carbon 41.43% andcaloric value of 7,338 Kcal/kg.PT DAP director Herman Koswara says,“We are pleased to participate in PHI EnergyCorp's growth strategy through this relationshipand look forward to creating substantialvalue for all parties involved.”PHI Energy’s chairman Allen Wu says,“Acquisition of DAP coal assets is the firststep of our plan to engage sizable sources ofcoal supply to meet the demand of potentiallong‐term off‐take contracts. We are confidentthat this transaction will bring significanteconomic benefits to our shareholders.”Founded originally in 2005 as ProvidentialOil & Gas, Inc., PHI Energy has been eng a ‐ged in oil and gas joint ventures with variousUS companies in Texas and California. Thecompany is a majority owned subsidiary ofAXN Group, a global investor in the naturalresources sector, encompassing oil & gas,forestry/timber, and mining.PT DAP’s mines are in West Sumatra withestimated reserves of 40 million tonnes.PHI mendapatkan aset-asetdi Sumatra BaratPHI Energy Corporation, anak perusahaanminoritas‐PHI Group, telah menandatanganiperjanjian pembelian aset untuk mengakuisisiaset tambang batu bara diSumatera Barat dari PT Dian AnugrahPratama (PT DAP), sebuah perusahaanIndonesia dengan kantor pusat di Jakarta.Manurut perjanjian yang ditandatanganibersama AXN Group LLC, PHI Energy akanmendapatkan cadangan batubara siap ditambangsebesar 10 juta tonnes di suatu daerahseluas 423 hektar di Kecamatan Kapur IX,Kabupaten Lima Puluh Kota, PropinsiSumatera Barat, Indonesia, dari DAP yangmendapat 20 juta saham stok biasa PHIEnergy bernilai US$1.00 per saham.Penyelesaian transaksi ini dijadwalkanpada awal bulan Mei. Sebagai bagian dariper j anjian ini, PHI Energy telah menyatakankesediaan untuk memasukkan pernyataanpen daftaran dengan Komisi Sekuritas danPer tukaran AS untuk menjadi sebuah peru sa ‐haan yang diperdagangkan publik dan mel ‐ap or penuh dan akan melaksanakan ini dal ‐am waktu 90 hari setelah penyelesaian di atas.Data dari analisa sampel aset batubarayang diperolehi menunjukkan kadar abu10.66%, total sulfur 0.97%, total kelembaban4.78%, bahan‐bahan volatile 46.36%, karbontetap 41.43% dan kalori 7,338 Kcal/kg.Direktur PT DAP Herman Koswara berkata,“Kami gembira untuk ikut serta dalamstrategi perkembangan PHI Energy Corpmelalui kerjasama ini dan melihat kedepanuntuk mencetuskan Nilai yang substantiveuntuk semua yang bersangkutan.”Ketua PHI Energy Allen Wu mengatakan,“Akuisisi aset batubara DAP adalah langkahpertama dalam rencana kami untuk meng ‐elola sumber‐sumber batubara yang besarbagi memenuhi potensi kontrak‐kontrakJune 2011 l Coal Age Asia l 25

Indonesiapehnjualan jangka panjang. Kami yakin bahwa transaksi ini akanmemberikan hasil keuangan yang signifikan untuk pemegangpemegangsaham kami.”Didirikan pada mulanya di tahun 2005 sebagai Providential Oil &Gas Inc, PHI Energy telah berkecimpung dalam proyek‐proyekpatungan oil dan gas dengan berbagai perusahaan‐perusahaan AS diTexas dan California. Perusahaan ini adalah anak perusahaan mayoritasAXN Group, sebuah investor dua dalam sektor sumber‐sumberalam termasuk oil, gas, kehutanan/timber dan pertambangan.PT DAP adalah sebuah perusahaan Indo n esia yang menumpukanperhatian pada per t ambangan dan penjualan batubara. Pada waktuini tambang‐tambang perusahaan berada di Sumatera Barat denganestimasi cad angan sebesar lebih kurang 40 juta tonnes.Monnet acquires Sumatran mineMONNET Global has completed the acquisition of Indonesian coalcompany PT Sarwa Sembada Karya Bumi and plans to utilize thermalcoal from operations in Jambi province of Sumatra to ensure rawmaterial security for power plants in India. Any surplus coal will besold to customers in China, Japan, South Korea and Vietnam.Monnet Global, which is part of the Ind ian industrial congl om er ‐ate Monnet Group, hopes to boost annual output from the operati ‐ons from an initial 1 million to 5 million tonnes by the middle of 2012.Spread over 25,000 hectares, the mine that Monnet has acquiredfor US$24 million has been explored only for some 1500 hectares inwhich alone thermal coal reserves have been estimated at 65 milliontonnes. The Coal Contract of Works awarded to PT Sarwa by theGovernment of Indonesia will now be transferred to Monnet, makingit one of very few Indian companies to have a CCoW.Monnet Group’s executive vice chairman and managing directorSandeep Jajodia says, “The acquisition of PT Sarwa is of strategicimportance for the group as the logistic of the mine is excellent and,being in Sumatra, the shipping cost and low transit time to India willmake the coal very cost effective. It will also provide low cost fuel forour planned coast‐based power projects.“We plan to mine more coal than required for our captive needs,for selling in the open market which will be a long‐term source ofrevenue, as there seems to be good potential for the reserves to go upsubstantially. The worldwide coal markets are expected to do verywell in the coming years and especially India and China will remainstrong buyers.“Keeping in mind the high coal prices, the valuation of such coalassets have gone up many folds in recent times. We have been able toclose the deal at a very low value as the agreement with PT Sarwa wasinitially executed in 2008 however the process and regulatory proceduresfor the actual transfer took a long time to finally close the deal.“We plan to hire a contract firm to start coal mining, which maytake about six to nine months. The company proposes to set up ajetty to evacuate coal and is planning to invest about US$10 millionin building the required infrastructure.”Monnet is exploring options to get into logistics to ship the coal.Sandeep Jajodia says, “We plan to hire ships on long term charter.”He added that Monnet Group is setting up a 1050MW coal‐firedpower plant at Angul in Orissa with the first unit of 525MW likely tobe commissioned by the end of 2012.Monnet mendapatkan pertambangan di SumateraMONNET Global telah menyelesaikan akuisisi perusahaan IndonesiaPT Sarwa Sem b ada Karya dan berencana menggunakan bat u b arathermal dari operasi di Propinsi Jambi di Sumatera untuk menjaminkeamanan bahan baku untuk pabrik tenaga listrik di India. Sisabatubara yang ada akan dijual ke pelanggan di China, Jepang, KorSeldan Vietnam.Monnet Global, bagian dari konglomerat industry Monnet Groupyang berkedudukan di India, mengharapkan untuk mening kat kanpengeluaran tahunan operasi‐oper a sinya dari 1 juta tonnes ke 5 jutatonnes pada pertengahan 2012.Dari luas tersebar 25,000 hektar, tambang yang telah didapatkanMonnet seharga US$24 juta hanya baru dieksplorasi sebesar 1500hektar saja sedangkan cadangan batubara thermal dari area inidiperkirakan 65 juta tonners. Perjanjian Coal Contract of Works(CCoW) berprestasi tinggi itu yang diberikan Pemerintah Indonesiakepada PT Sarwa sekarang akan dipindahkan ke Monnet. Dengandemikian ia menjadi salah satu dari hanya beberapa perusahaanperusahaanIndia yang memiliki CCoW.Wakil Ketua Executive dan Dirut Monnet Group Sandeep Jajodiamengatakan,”Akuisisi PT Sarwa mempunyai kepentingan strategisbagi grupnya karena logistic tambang sangat baik dan lokasinya diSumatera berarti ongkos pengangkutan dan waktu transit yang pendekke India membuat batubara itu efektif ongkos. Ia juga akanmenyediakan bahan bakar murah untuk proyek‐proyek pantai yangtelah kami rencanakan.”“Kami merencakan untuk menambang lebih dari yang kami perlu k ‐an untuk dijual dip asaran terbuka dan menjadi pendapatan jangka panjangkarena potensi baik pening katan cadangan secara besar‐besaran.Pas ar an batubara dunia diperkirakan baik untuk tah un‐tahun kedepandengan India dan China tetap menjadi pembeli‐pembeli yang kuat.“Mengingat harga batubara yang tinggi, valuasi aset‐aset batubaratelah meningkat berkali ganda belakangan ini. Kami berhasil menutupperjanjian dengan harga rendah kar ena ini mula‐mula dibuat bersamaPT Sarwa di tahun 2008, tapi proses dan prosed ur‐pro s edur peraturanuntuk pemindahan makan waktu yang panjang untuk diselesaikan.“Kami berencana untuk mengontrak sebuah perusahaan untukmemulai penambangan batubara yang akan memakan waktu 6 sampaidengan 9 bulan. Perusahaan kami mengusulkan untuk membangunsebuah dermaga untuk mengevakuasi batubara dan berencana26 l Coal Age Asia l June 2011

Indonesiamenginvestasi US$10 juta untuk membanguninfrastruktur yang diperlukan.”Monnet sedang menjajaki kemungkinankemungkanlogistis untuk pengiriman batu ‐bara. Sandeep Jajodia berkata, “Kami berenc ‐ana untuk mencharter kapal‐kapal secarajangka panjang.” Ia menambahkan bahwaMonnet Group sedang membangun pemb ‐angkit tenaga listrik menggunakan batubarayang berkapasitas 1050 MW di Orissa. Unitpertama dengan 525 MW akan dikomisikanpada akhir 2012.Adaro increases productionADARO Energy intends to produce 46‐48million tonnes of coal from its Indonesianoperations during 2011, including 4‐5 milliontonnes of Envirocoal from its Wara operations.The figure is slightly higher than the2010 target of 45 million tonnes, a target thatwas revised down to 42‐43 million tonnesfollowing unprecedented rainfall.A recent announcement of further investmentinto IndoMet Coal, a joint venture withBHP Billiton, could also lead to increasedproduction figures. It plans to invest US$100million into the projects of IndoMet.Adaro, through its subsidiary PT Alam TriAbadi, holds a 25% interest in the joint venturewhich has coking coal projects in SouthLoading coal at an Adaro project.and East Kalimantan. It also indirectly holds25% interest in seven BHP units owning theIndoMet projects.Adaro expects flat to moderate growthfrom its mature Tutupan pit over the nextfew years as it focuses on plans to increaseoverall annual production to 80 milliontonnes in the same timeframe.In terms of increasing capacity at the 18‐year‐old pit, a key challenge and major inputcost is overburden hauling and handling,which will become more expensive as the pitgets deeper and haul distances increase.As ensuring production growth of Tutu p ‐an is a higher priority than increasing coalhauling efficiency, Adaro has advancedplans to increase and improve overburdenremoval at the mine. Plans to construct anout of pit crusher and conveyor (OPCC) areprogressing. With an expected cost ofUS$250‐US$300 million, the OPCC is estim a ‐ted to deliver similar or better economic benefitsas the overland conveyor, which hasbeen put on hold. Adaro expects the OPCCwill be operational by 2013.The company continues to target 30 mill ‐ion tonnes of Envirocoal‐Wara and 50 mill ‐ion of Envirocoal‐Tutupan by 2014. Afterbeginning shipments of Envirocoal‐Wara inthe second quarter of 2010, Adaro has continuedto receive strong interest from existingcustomers in countries such as India,China, Indonesia and South Korea.Adaro’s new 2X30MW mine‐mouth powerplant will power the new conveyors and theentire mining operation, bringing cost savings,less dependency on oil and more reliability.The plant is expected to begin in 2012.Adaro has signed three new long‐termcoal barging contracts, which will strengthenthe barging segment of the supply chain andlower freight rates by 15%. Rather than selecta solitary winner to fulfil anticipated additionaltonnage, Adaro split the volumesamong three winning bidders and structu ‐red a competitive environment, where additionalfuture tonnages will only be awardedto the best performing contractor.June 2011 l Coal Age Asia l 27

Regional newsRESOURCES UP AT SOUTHGOBI PROJECTSINDICATED resources at SouthGobiResources’ operating Ovoot Tolgoi Complexin southern Mongolia have increased by 7%while inferred resources are up by 190%. Atthe nearby Soumber deposit measured andindicated resources have also increased by187% and inferred resources by 19%.Ovoot Tolgoi comprises the Ovoot TolgoiCoal Mine and the Ovoot TolgoiUnderground Deposit while Soumber comprisesthe Soumber and Biluut fields.An updated independent NI 43‐101 compliantresource estimate for the Ovoot TolgoiComplex shows that surface and undergroundresources contain measured plusindicated resources of 266.2 million tonneswith an additional inferred resource of 97.1million tonnes.Ovoot Tolgoi resources are found in twodifferent resource areas ‐ Sunrise and Sunsetfields. The resources identified have beendetermined to be suitable for surface miningto a maximum depth of 300 metres belowsurface and potential underground miningbetween depths of 300 metres below surfaceto a maximum of 600 metres.At Sunrise surface deposit there are 54.5million measured, 19.9 million indicated and11 million inferred tonnes, and undergroundthere are 5.4 million measured, 21.2 millionindicated and 70.8 million inferred tonnes.At Sunset surface deposit there are 81.8 millionmeasured, 15.9 million indicated and 1.9million inferred tonnes, and undergroundthere are 46.6 million measured, 20.9 millionindicated and 13.4 million inferred tonnes.Quality analyses performed to date rankOvoot Tolgoi coal as high‐volatile B to Abituminous based on the ASTM D388 standard.High‐volatile B and A bituminouscoals are hard black coals. High‐volatile Bproduces between 7212 and 7785 kcal/kgand high‐volatile A produces greater than7785 kcal/kg heat output. Coal from OvootTolgoi is being sold to customers in China.The Soumber project consists of a singleexploration licence. Soumber Field is about20km east of the Ovoot Tolgoi Complexwhile the Biluut Field lies immediately to theeast of the Soumber Field. The project isabout 45km north of the Mongolia‐Chinaborder crossing at Shivee Khuren‐Ceke.The overall deposit area is now estimatedto contain measured plus indicatedresources of 61.4 million tonnes with anadditional inferred resource of 65.8 milliontonnes. The estimate incorporates explorationdata down to a depth of 250 metresbelow surface. Biluut has an inferredresource of 52.2 million tonnes with all otherresources attributable to Soumber Field.The project’s resources are classified asbituminous coal and the rank ranges fromlow‐volatile bituminous to medium‐volatilebituminous, based on ASTM standard D388.Calorific values range between 5000 kcal/kgto 7800 kcal/kg. Coal quality data suggeststhat there is good potential to produce ablend or washed coking coal product fromshallow sources.Chinese miners test coal capsuleSHANXI‐based coal producer Lu’an Grouphas completed China’s first manned test ofan underground refuge chamber. A team of80 miners, rescue workers and researchersstayed in a permanent refuge chamber in thecompany’s Changcun Coal Mine for 48hours then emerged safe and sound.Refuge chambers are emergency shelterfacilities that can protect trapped minersfrom toxic and harmful gases during anunderground disaster. During emergencysituations miners can find shelter in the nearestchamber.The refuge chamber where the test wasconducted was in the North Third District ofChangcun mine. The chamber was built inMay 2010 and designed to sustain 80 to 100people in case of disaster. It features explosionprotection, an enclosed space, air monitor,carbon dioxide absorber, temperatureand humidity controller, supplies of power,Coal from SouthGobi’s Ovoot Tolgoi complex is being sold to customers in China.28 l Coal Age Asia l June 2011

Regional Newsoxygen, food and water, and communicationsequipment. Trapped miners can obtainfresh air, liquid food and electricity from arescue borehole extending to the ground.Designer of China’s first‐generation minerescue chambers and a professor at theUniversity of Science and Technology inBeijing, Jin Longzhe said that the feasibilityand reliability of the permanent refugechamber’s oxygen supply system had beentested, and the data derived from the realtimemonitoring of multiple parametersinside the chamber had laid a technical foundationfor further improvements to undergroundshelter facilities.Lv Haijun, a miner at Changcun mine, wasone of the participants in the test. Heappeared to be a little tired but still smiled ashe was walking out of the chamber. He toldreporters that the process of the test wassmooth and he had no uncomfortable feelingsexcept that the chamber was a bit damp.Lu’an Group general manager LiuRensheng said after miners entered therefuge chamber, they were able to communicatewith the ground control centre using anindoor communications systems and twowayvideo conversations in order to providefollow‐up rescue work with reliable guarantees.He said, “Whatever the investmentsare, they are worthwhile when it comes tothe safety of workers.”This system, jointly developed by Lu’anGroup, Beijing University of Science andTechnology and Beijing ZhongshengzhouMining Technology Centre, is now set to beapplied at more mines in the future.China’s first manned test of undergroundrefuge chambers is sure to further enhancethe technologies and level of undergroundmining shelters, and continue to advance thedevelopment of a new type of safety andprotection system.Enviro guidelines for BandannaAUSTRALIAN coal explorer BandannaEnergy has received Final EnvironmentalImpact Statement (EIS) Guidelines from theCommonwealth Government for itsArcturus and Springsure Creek projects inQueensland's Bowen Basin. The guidelinesare tailored to specifically address environmentalissues particular to the projects.Bandanna’s managing director Ray Shawsays receipt of the guidelines is another significantstep in defining the process ofapproval for its ‘Golden Triangle’ projects.“The statements will be developed through acomprehensive program of technical assessment,research and modelling, in consultationwith all relevant stakeholders for thetwo sites. The Commonwealth and Stateapproval processes will be conducted in parallelwith a single EIS for each project thataddresses both Commonwealth and Staterequirements.”Springsure Creek and Arcturus are within14km of each other in Central Queensland,south of the town of Emerald. The companyhas recently received feasibility studieswhich have assessed the viability of developingthe Springsure Creek, Arcturus andDingo West coal projects. Ray Shaw says,“Based on the positive outcomes of thesestudies Bandanna will undertake DefinitiveFeasibility Studies (DFS) on each project tobetter define the projects and related costs.”The DFS will enable engineering designsto be further developed, in some cases tocompletion, and enable competitive bid pricingfor major equipment to be obtained.They will also further explore potential capitaland operating synergies betweenArcturus and Springsure Creek.The Springsure Creek study concludedthat it will be an underground longwallmine with nominal annual ROM coal productionof 5.5 million tonnes increasing to 11million over the remaining life of mine oncea second longwall is installed. No washeryJune 2011 l Coal Age Asia l 29

Regional newswill be required as the coal has less than 10%ash on an air dried basis.Subject to approvals first developmentcoal could be mined during the 2014 financialyear with longwall coal the followingyear. It also concludes that the mine will linkto the Blackwater rail system via theBauhinia branch line with coal exported viathe new Wiggins Island Coal ExportTerminal at Gladstone.The Arcturus study concludes that themine will contain both limited open cut andlonger term underground mines annuallyproducing 5 million tonnes. The export qualitythermal coal has an ash content of 13%and is suitable to be sold raw, therefore nocoal preparation plant has been included inthe design plan. It will have the same transportlinks as Springsure Creek.For Dingo Creek the study concludes thatthe proposed mine would be open cut withannual production of 1 million tonnes.Bandanna holds 11 coal exploration permitswith applications for a further five inthe Bowen and Galilee basins inQueensland. It also has conventional oil andgas exploration interests in the Cooper Basinof South Australia and Queensland, andmineral exploration licences, primarily foroil shale, in Queensland.Drilling at Bandanna Energy’sSpringsure Creek coal projectMUI seeks Inner Mongolia projectTHE acquisition of a coal project licence inInner Mongolia, China, is in line with themedium to long‐term strategies of MUICorporation. The project licence is in aproven coal, oil and gas basin, and close toexisting infrastructure which provides quickaccess to high demand coal customers.The ASX‐listed company is performingdue diligence and has sent an expert technicalteam to identify and pre‐engage possibleinfrastructure providers.The project is in the Bayanhue formationwith the licence covering 41.81sqkm in thenorthern part of the Inner Mongoliaautonomous region. It is about 70km from anearby city, close to transportation and othergeneral infrastructure, and close to the newXilin Gol mine of major Chinese energy producerDatang Group. This mine has beenoperating since June 2010 and is extractingthermal coal at an annual rate of 30 milliontonnes to supply local power plants.In the event that the current owner of theproject, Inner Mongolia Xinyuan MiningCompany, is able to satisfy the milestones inthe put and call option deed entered intobetween the two companies in April, theproject could represent a significant economicopportunity for MUI.A significant proportion of the considerationpayable to Xinyuan by MUI will be satisfiedthrough the issue of shares, whichdemonstrates the confidence of the Chinesecompany in the project.At present MUI has no financial burden,risk, commitment or exposure to the projectwith Xinyuan bearing the costs associatedwith the defined terms and conditions. Theonus is on Xinyuan to demonstrate the viabilityof the project by satisfying the JORCcompliant inferred resource with targets.Should is delineate a 750 million tonne JORCinferred resource on the licence, MUI willcommit to exercise the option to acquire thelicence and payment of the consideration forthe licence.Initial exploration on the project betweenSeptember and December 2010 covered 4500metres of a drilling program consisting of 9holes and 8 well logging with 216 core coalsamples collected and assayed. The currentdrilling program is based on a 2000 metre by2000 metre scale.Xinyuan has advised MUI that it has discoveredcoal in the licence area and will startthe next phase of drilling promptly with aview to defining a JORC compliant resource.Essar signs up for UCG technologyCLEAN Global Energy's underground coalgasification (UCG) technology seems certainto be a hit in India with the company signingan agreement with major energy companyEssar.In an interview with Boardroom Radio,Clean Global’s chairman and CEO JohnHarkins said that the binding Heads ofAgreement with Essar to commercialize thecompany's UCG expertise in India was a‘marriage made in heaven’.He said Clean Global's revenue streamhad already begun through fees to assistEssar to complete its bid for UCG coal blocksfrom the Indian Government.Under the agreement, ASX‐listed CleanGlobal may generate up to $US60 million inlicensing and project management fees duringdesign, construction and commissioningof a pilot and then a commercial plant, androyalties of up to $US20 million after achievingcommercial production of UCG Syngas.John Harkins told Boardroom Radio thatthe agreement was a commercially rewardingsituation for Clean Global as Essarwould bring ‘real muscle power’ to the projectby carrying the capital costs of buildingthe UCG plants early on in the project, whileClean Global would take revenue from thelicensing agreement for use of its technologyand expertise.Essar has agreed to free carry Clean Globalfor 20% equity through to a commercialUCG Syngas plant, at which time theAustralian company will pay for that equityat cost, up to $US30 million, which shouldhave a valuation of at least $US100 millionbased on NPV modelling.The technology licence agreement is triggeredif Essar is granted a UCG block/s byCoal India, its subsidiaries or any other bodycorporate or government authority. BothEssar and Clean Global are confident ofobtaining approved UCG blocks.Clean Global can produce Syngas for usein heating, power generation and the productionof chemicals, fertilizer, ultra cleandiesel and aviation fuels. It uses a processcalled Linear CRIP (Controlled RetractableInjection Point) UCG to produce Syngas.The advanced Linear CRIP UCG processprovides greater efficiencies and controlwith less overall operating and capital costs.Once the raw UCG Syngas is produced atthe production well the Syngas is passedthrough a number of processes to produceregular, premium or ultra Syngas dependingon the requirements of clients.Clean Global partners with other companiesin development of solution packages toproduce cleaner power from coal, syntheticnatural gas and ultra clean fuels. It alsolicences its technology globally. It has projectsin the US, India, Australia and China.Further Shanxi consolidationPUDA Coal 90%‐owned subsidiary ShanxiPuda Coal Group has entered into separatecoal mining rights and mining assets transferagreements with three coal mines inHuozhou County, Shanxi Province. Thisdevelopment forms part of an arrangement30 l Coal Age Asia l June 2011

Regional Newswith the provincial government for Puda to acquire and consolidatecoal mines in Shanxi.On September 30, 2009, Shanxi Coal was appointed by theprovincial government as an acquirer and consolidator of ninethermal coal mines in Pinglu County in southern Shanxi. The companyplans to consolidate the nine into five, increasing their totalannual capacity from about 1.1 million to 3.6 million tonnes.In March 2010 Shanxi Coal received another approval by thegovernment to consolidate four additional coking coal mines intoone coal mine in Huozhou County known as the Jianhe project.After the consolidation, Jianhe is expected to increase total annualcapacity from 720,000 to 900,000 tonnesThe mining rights and asset transfer agreements at Jianhe relateto the mines owned by Shanxi Huozhou Jianzhuang Coal Industry,Shanxi Huozhou Leijian Coal Industry and Shanxi HuozhouFengshen Coal Industry companies. Shanxi Coal has agreed to payan aggregate purchase price of about US$14.98 million forJianzhuang Coal, about US$14.06 million for Leijian Coal andabout US$13.29 million for Fengshen Coal.Under each agreement, Shanxi Coal agreed to pay 90% of thepurchase within five days of signing and the remaining 10% threemonths after the signing if Shanxi Coal confirms there is no claimagainst the respective sellers with respect to the transferred assets.Shanxi Coal is in the final stages of negotiations with the ownerof the last Jianhe project mine and expects to sign a definitive agreementto acquire Shanxi Jianhe Coal Industry in the near future.Jianhe Coal is the largest of the four target mines to be consolidatedunder the Jianhe project.Shanxi Coal plans to place all acquired assets of these companiesinto Shanxi Huozhou Lituo Coal Industry, a newly establishedproject company approved by the provincial government. The geologicaltechnical report on Lituo Coal has been completed. Basedon the construction plan, the three small mines will be closed, oneof the mine shafts will become a gas emission shaft and the JianheCoal facility will become the operational mine of Huozhou Lituo toexplore the reserves, including those underground.Shanxi Coal expects to receive construction approval by June2011 and anticipates that it will take 8‐10 months to complete theconstruction upgrades and consolidation of the mines under theJianhe project after receiving construction approval.Puda’s CEO Liping Zhu says, “The primary reserve of the Jianheproject is metallurgic coal, which provides an attractive opportunityto take advantage of China's growing infrastructure anddemand for steel. It also allows us to benefit from synergiesbetween our coal washing and coal mining operations.”Ovoot drilling confirms potentialASPIRE Mining has started its 2011 drilling program at the OvootCoking Coal Project in northern Mongolia which aims to increasethe size of the resource and test the Ovoot Basin for additional coalresources. The company has mobilized a second open hole drillingrig to the site and expects a third rig to begin drilling in June.The first stage of the 2011 program comprised infill drillingwhich has confirmed thick, near‐surface coal seams within theOvoot resource. This indicates potential for an initial direct shipopen pit mining operation, which is likely to form stage 1 of theproject’s development.Upper seam results include 9.9 metres of coal from 163.5 metres,18.6 metres from 129 metres, 15.5 metres from 160.7 metres and 24metres from 111 metres. Lower seam results include 6.7 metresfrom 183.9 metres, 26.3 metres from 205.4 metres and 5 metres from144 metres. All holes were cored through the coal seams to provideJune 2011 l Coal Age Asia l 31

Regional newsfurther samples for quality analysis.The company is carrying out acomprehensive 200 line km 2‐D seismicsurvey of the Ovoot Basin. Thishas identified a number of coal targetstowards the east and south ofthe existing resource with resourcedrilling being undertaken to test thecoal seam extensions interpretedfrom the survey.Aspire has also completed a 2‐Dseismic survey over the Zuun Delprospect in the eastern limb of thebasin. This is the only other knownoutcropping coal location within thebasin and is considered a prospectivetarget. A thin coal measure was intersectedduring exploration drilling in 2010and it is anticipated that the seismic interpretationmay lead to coal exploration targetsfor drilling.The 2‐D seismic survey crews have movedto the Hurimt prospect, an area that coversthe central part of the Ovoot Basin with outcroppingJurassic‐aged sediments, which arepotentially coal bearing.The company has received all outstandingraw coal sample analyses from its 2010drilling program with results confirming thehigh quality of its resource at the Ovoot project.The raw coal data will be incorporatedinto the Ovoot resource model for futuremine planning and open pit optimization.Under the ASTM coal ranking system,Ovoot coking coal is classified as HighVolatile Bituminous ‐ B while under the ISOcoal classification standards, the coal is classifiedas Medium Rank B, high vitrinite, lowash, coking coal (washed 31.5 x 0 mm).Under both classification systems, it hasbeen confirmed as a high quality coking coal.Duchess Paradise resource boostESTIMATED resources at the DuchessParadise Thermal Coal Project of Rey Res ou ‐r ces in Western Australia’s Canning Basinhave increased by 9% to 305.8 milliontonnes. The company is on track to completea definitive feasibility study for the projectby the end of June and will begin a drillingprogram by the end of the second quarter.A particularly pleasing aspect of theupdated estimate has been establishment of60.2 million tonnes of measured resources inthe upper (P1) seam. The re‐estimation fromthe 2009 total was made after compilinginformation from the 2010 drilling season.The drilling has also resulted in moredefinitive knowledge of the character andconsistency of the seam, which allowed forthe practical extension of inferred resourcesfor a distance of up to 2000 metres beyondRey’s tenements in northwest Western Australiathe last exploration holes at both Paradiseand Duchess.Of the total 305.8 million tonnes of P1seam resources, there are 60.2 million measuredtonnes, 78.5 million indicated tonnesand 167 million inferred tonnes. Of theinferred resource, 115.7 million tonnes areextrapolated beyond the last drillholes. Reyexpects to report a reserve statement basedon the measured and indicated resourcesbefore the end of June.The Duchess Paradise deposit is withinthe Fitzroy Trough of the Canning Basin. Thecoal seams dip between seven and 10degrees towards the south in the Duchessarea and between two and five degree to theeast in the Paradise area. The depth of overburdento the top of the P1 seam ranges fromaround 20 metres at the limit of oxidation toabout 400 metres at the down dip end of theinferred resource in Duchess.Overall, the P1 total seam thickness rangesfrom less than one to more than threemetres, but it is very often in the range of 2.0to 2.25 metres in both the Paradise andDuchess areas. The coal is characterized aslow energy bituminous. Coal quality calculationsare in progress but are expected to be5500 kcal/kg gar, 12% ash, 17% moisture andsulphur of less than 1%.Rey is continuing the DFS for a potentialinitial highwall mining operation on itsmeasured and indicated resources.Projections are for annual production of 2‐2.5 million tonnes. Most key transportationinfrastructure for the proposed initial operationis in place. Coal is expected to travel byroad for 180km to the Derby export facility,where Rey holds a lease over port facilitiesand owns loading equipment, for shipmentto growing markets in China and India.Funds boost for China Coal CorpCHINA Coal Corporation will use morethan $500,000 raised in a recent non‐brokeredprivate placement to continue its strategyof acquiring existing producingor formerly producing coal propertiesin China. The funds will alsoassist the company in further developmentof its first coal asset, the MeiFeng project in Xinjiang Province.An independent NI 43‐101 technicalreport commissioned by ChinaCoal in relation to acquisition of MeiFeng states that it represents a mineableunderground deposit andorderly extraction of the reserveshould proceed as planned. It indicatesthat there is a resource on theproperty worthy of current miningoperations, additional exploration andfurther development.The current mine owners have secured allleases and permits for mining, so the reportstates that only maintenance of these isrequired in the future. It indicates estimatesof required capital, manpower and equipmentfor the surface mine operations are reasonable,and that projected tonnages are reasonablebased on the reserves associatedwith the mine.There are measured and indicatedresources of 18.138 million tonnes andinferred resources of 892,120 tonnes withpotential to add to this through furtherexploration. As at December 16, 2010, thereserve total was 7.692 million tonnes fromnine seams. Reserves are reported on a cleanbasis rather than a run‐of‐mine basis becauseROM coal is not sold as a product but furtherprocessed to produce a saleable productsuitable for the local market.The concession is rich in coking coal andthermal coal. There are 11 mineable seams,of which six are coking coal, which commandsa higher price and is being sold tolocal coking coal plants. The thermal coal isnot currently being exploited.China Coal’s chief financial officer MarkRoth said that after listing on the TSXVenture Exchange in May 2010, China Coal’sChinese subsidiary signed an agreement toacquire 60% of the operating Mei Feng minefor about 150 million RMB.He says China Coal then engagedNorwest Corporation to prepare the reportand in January this year formed a TechnicalAdvisory Board to review operations andacquisitions, and recommend on safety andexpansion projects.“Construction of an underground minewas completed last year and a six‐monthproductivity and safety testing phase wascompleted in the third quarter. Mine constructionconsists of 6000 metres of tunnelsand initial production from B3 and B8 metallurgicalcoal seams began last September.32 l Coal Age Asia l June 2011

Regional News“At present annual production is about300,000 tonnes and China Coal intends toincrease this to 900,000 tonnes.”As well as acquiring Mei Feng, the companyis undertaking due diligence on anothertwo mines being considered asacquisition targets.Blackgold acquiresWuShan mineBLACKGOLD International Hold ‐ings has satisfactorily completedits due diligence investigationsinto the WuShan Maoj ia wangCoal Project in China’s ChongqingProvince and has executed theequity transfer agreement with thevendor Fengjie Xinyu MiningProducts Co and Yihu Yi.The Chinese‐based companyhas also received approval for theacquisition from the authorities ofthe government of the People’sRepublic of China. The RMB 80 million(about Aus$11.67 million) purchaseis Blackgold’s first since it listed on theASX in February 2011 and adds to its existingCaotang and Heiwan coal projects.The WuShan Maojiawang mining leasecovers 29.96sqkm in a central location ofWushan County, 8km south of the YangtzeRiver. The Maojiawang No 1 mine area has aproduction permit that covers 2.83sqkmwith approval to develop two productionadits and one ventilation adit at theZhoujiabo section.Shibeiya section.Blackgold's CEO and executive directorYu Guo Peng says the WuShan acquisition isin line with the expansion plans articulatedin the company's ASX prospectus andshould have two benefits for thecompany.“WuShan is anticipated to representnear‐term production that willsignificantly increase Blackgold’sannual coal production volume, andadditional exploration and evaluationat the WuShan mine by a JORCqualified independent geologist isproposed and is expected to allowfor an increase in Blackgold’sresources.”WuShan is a highly developed,pre‐prod uction thermal coal mineabout 20km from Blackgold’s existingoperations. It con tains existingproduction adits together with ventilationand access shafts, and ancill aryMaintenance at a China Coal Corp mine. infrastructure including power, pipedwater, access roads and buildings. It isA production permit application covering close to river port loading facilities and hasthe remainder of the main lease will be submittedduring the year and upon approval Pursuant to the JORC Code, WuShan hashistori cally supplied small quantities of coal.development will continue on the existing an exploration target of 44‐46 million tonnesproduction adit and ventilation shaft situatedat the Maojiawang No 2 mine area at the and 25‐35%with a range in CV from 4500‐5500 kcal/kgash.June 2011 l Coal Age Asia l 33

Legally speakingTHE CHURCHILL MINING DEBACLE –a wake up call for mine owners and potential investorsBY BILL SULIVAN,licensed foreign advocate withChristian Teo Purwono & PartnersIntroductionTHE revocation of four mining licenses providingthe legal basis for Churchill Mining’sEast Kutai Coal Project, raises troublingquestions about the real security offered byIndonesia’s 2009 Minerals & Coal MiningLaw as well as about the effectiveness or otherwiseof the administration of that law.Many investors in the Indonesian coalmining industry will surely see the experienceof Churchill Mining as not just an isolatedand unfortunate incident affecting onehapless company and its shareholders but,rather, as a wake‐up call for all mine ownersand potential investors in the coal miningindustry. Foreign investors are likely to beparticularly disturbed by the ChurchillMining debacle and what it means for thelong term security of their investments in thecoal mining industry.BackgroundChurchill Mining and its partners havecompleted a feasibility study in respect ofthe East Kutai Coal Project which establishedthe existence of proven and probablecoal reserves of more than 900 million tones.In 2010, the Regent of East Kutai revokedthe four mining licenses which provided thelegal basis for Churchill Mining’s East KutaiCoal Project. The official reason for the decisionwas that Churchill Mining had carriedout illegal mining activities in forest areas.Churchill Mining’s subsequent applicationto the Administrative Court in Samarinda,East Kalimantan, seeking the reinstatementof its mining licenses, was rejected on March3, 2011. Churchill Mining has expressed itsintention to appeal the AdministrativeCourt’s decision, with the appeal to be heardby the Administrative High Court in Jakarta.The appeal will, realistically, take manymonths to be heard.Market rumour has subsequently suggestedthat factors, quite unrelated to forestryissues, were the real reason for the revocationof the mining licenses.The writer is not in a position to expressany view on what actually motivated thedecision of the Regent of East Kutai to revokethe mining licenses for the project or the likelyoutcome of Churchill Mining’s appeal.CommentaryRegardless of the legal merits or otherwiseof the action taken by the Regent of EastKutai, the cancellation of the four mininglicenses raises at least 5 issues which are ofpotential significance for all mining companiesin Indonesia and, most particularly, forforeign owned mining companies inIndonesia.1. Security of mining concessions:The holders of properly issued and registeredmining licences are meant to enjoy a34 l Coal Age Asia l June 2011

Legally speakinghigh level of security and the protection ofthe law so long as they comply with theterms of their mining licences and the applicablelaws and regulations of Indonesia.Indeed, Article 2(f) of the 2009 Minerals &Coal Mining Law expressly states that one ofthe objectives and purposes of the mininglicence system is to “guarantee legal certaintyin mineral and coal mining business activity”.It is on the basis of this assumed securityand protection that investors are preparedto invest huge sums in exploring and developingtheir mining concessions.If, however, mining licences can easily berevoked by the Regent or other authoritywhich issued the same, the assumed securityand protection offered by mining licencesis highly questionable.One of the major objections raised to thephasing out of contracts of work and theexclusive reliance on mining licences, as partof the 2009 Minerals & Coal Mining Law,was that mining licences were, relativelyspeaking, much easier to revoke than contractsof work. This was said to be becausemining licences did not enjoy the speciallegal status attributable to contracts of workas contracts between the central government,on behalf of the Republic of Indonesia,and the holders of the contracts of work.As such, holders of contracts of work werenot as much at the mercy of the issuingauthority as the holders of mining licenceswho could find their mining licences unilaterallyrevoked by mercurial Regents andwhich Regent changes every few years aspart of the local election process. While itwas acknowledged that mining licence holderswere not without legal redress in the caseof the improper or unfair revocation of theirmining licences, the prospect of challenging,in the Courts, the revocation of mininglicences was not an attractive one given thedysfunctional and non‐transparent record ofmany Courts in Indonesia.It would seem that, if nothing else, theChurchill debacle has shown this expressedconcern with the phasing out of contracts ofwork and the exclusive reliance on mininglicences, as part of the 2009 Minerals & CoalMining Law, to be well justified.The reality surely is that mining licenceswill never offer anything like as much securityand legal protection, as do contracts ofwork, for mine owners. At the same time, thereduced level of security and legal protectioninherent in mining licences will only meetthe minimum needs of mine owners whenthe process of administering mininglicences, particularly at the RegionalGovernment level, becomes vastly moreindependent, professional and transparentthan is currently the case. Realistically, thisseems to be a long way off.Holders of contracts of work and the supportersof the contracts of work system, lookingat what has happened to ChurchillMining, will no doubt be saying, in unison,“we told you so” and “all you supporters ofthe mining licence system now know thatwhat we said was true”.The experience of Churchill Mining canonly be seen as a material setback forIndonesia in its attempts to convinceinvestors that mining licenses substantiallyoffer mine owners equivalent protection andsecurity to that traditionally enjoyed by contractsof work holders.2. The role of the Central Government:It would seem the case that the CentralGovernment has, so far at least, chosen not toinvolve itself in or otherwise do anything totry to resolve problems created by revocationof the mining licences for East Kutai.This is despite the fact that Article 142(2) ofthe 2009 Minerals & Coal Mining Law clearlycontemplates a continuing role for theCentral Government where regional governmentsare not exercising their authority inaccordance with the provisions of the 2009Minerals & Coal Mining Law.Investors concerned about the transitionfrom contracts of work to mining licences noJune 2011 l Coal Age Asia l 35

Legally speakingdoubt expected and hoped that the CentralGovernment would be zealous in exercisingits residual powers in mining licence administrationas a means of reducing the risk toholders of mining licences posed by Regentsarguably acting beyond their authority inrevoking mining licences. To date, ChurchillMining and its unfortunate shareholders canonly be disappointed by the apparent lack ofany response from the Central Governmentto their invidious predicament.3. Increasing sensitivity of forestry issues:It is interesting that the stated reason forthe revocation of Churchill Mining’s mininglicences is the carrying on of illegal miningactivities in forest areas. This just serves tohighlight what an extremely challengingand sensitive issue mining activities in forestareas have become in recent times.Many mining companies have surelyfailed to appreciate how challenging andsensitive a subject is forestry and, consequently,how important it is to make surethat they have all required MoFor permits inplace (in addition to mining licences) beforecarrying out any activities in or near forestareas. As MoFor permits are becomingincreasingly difficult to obtain, attending toforestry related matters can no longer just bean after thought. Given many of the coalmining concessions being offered for saleinclude significant forest areas, the implicationof this issue for prospective buyers andinvestors is that they should not just rely onbland assurances, from the existing owners,that the MoFor permits will be forthcoming“in due course” or that the forestry issuescan otherwise be “sorted out”.Because the precise boundaries and statusof many forest areas are often matters of genuinedispute in Indonesia, mining companiescan easily find themselves exposed bymaking robust and, ultimately unwarrantedassumptions about their legal ability to carryon mining activities in those parts of theirmining concessions which are or may bedesignated as forest areas.Mine owners also often fail to understandthat not even the most preliminary explorationactivities are permitted in forest areaswithout a MoFor permit and that an‘approval‐in‐principal’ for a MoFor permitdoes not allow any activities to take place inthe forest area until the permit itself is issued.Great caution in all matters related to forestareas is clearly warranted.The experience of Churchill may onlyserve to highlight that, in the case of thoseconcessions with significant forest areas,having a valid mining licence is largelymeaningless unless the mine owner also hasthe necessary MoFor permits.4. Importance of strict compliance withall mining licence obligations:36 l Coal Age Asia l June 2011As Churchill has found to its chagrin,regional governments have a lot of discretionin revocation of mining licences. It isalso possible that this discretion will notalways be exercised for the right reasons orthird party considerations will be allowed tointrude on a particular Regent’s decisionwhether or not to revoke a mining licence.Regardless of whether or not there is anytruth to the market rumours in Churchill’scase, the easiest way for a well‐connectedthird party to obtain control of a promisingmining concession in Indonesia is, often, tofind a defect in the licence position of theexisting mining concession holder (eg, lackof the necessary MoFor permits) and then“encourage” the regional government to usethis defect as the grounds for cancelling orrevoking the mining licence of the existingmining licence holder in the expectation that,when the mining concession is re‐offered,the self‐interested third party will be able toprocure the award to itself of a new mininglicence in respect of that concession. Whilethe tendering process contemplated by the2009 Minerals & Coal Mining Law is meantto go some way to overcoming this sort ofmanipulation, it seems unlikely that suchoccurrences will be eliminated entirely.The principal implication of the “thirdparty manipulation problem” for existingmine owners is the fundamental importanceof not exposing themselves to this sort of riskby ensuring that they scrupulously complywith all their mining licence obligations.The secondary implication is the importanceof maintaining a good and professionalworking relationship with regional gover ‐n ment so that the regional government willbe willing to ‘show some understanding’ ifthe mine owner finds itself in technical ortemporary breach of its licence obligationsfor any reason. Mine owners which are dismissiveof the regional governments andwhich otherwise fail to show a reasonablemodicum of goodwill and respect towardsregional officials do so at their peril. For betteror for worse, with the advent of regionalautonomy, it is really the regional governments,rather than the central or provincialgovernments, which have relevant authorityin the case of most mining licence issues.5. The frustration of Court proceedings:The extra‐ordinarily time consuming andprotracted nature of legal proceedings inIndonesia pose real problems for ChurchillMining and all other mine owners.Regardless of the merits or otherwise ofChurchill Mining’s legal position, now thatits mining licences have been revoked, gettingthe Indonesian courts to overturn thedecision of the East Kutai Regent is going tobe an uphill battle which will almost surelydrag on for many months, if not years,before the dispute is finally resolved. As aforeign party, Churchill Mining is also likelyto be at a strategic disadvantage in theselegal proceedings.Even if Churchill Mining ultimately prevailsin its appeal and the four mininglicences are ordered to be reinstated,Churchill Mining will have been put to vastexpense in vindicating its position and alarge mining project, with the potential tocreate many jobs for Indonesians and generateconsiderable tax revenues for all levels ofIndonesian government, will have beenindefinitely delayed.The implication for mine owners, particularlyforeign owners, must be to never letany licensing disputes/problems get to thestage of legal proceedings in Indonesiabecause the chances of a company, particularlya foreign‐owned company, prevailingagainst a regional government, especially if awell‐connected third party is also involved,are not high regardless of the legal merits ofthe mining company’s position.Summary and conclusionsThe Churchill Mining debacle highlightssome significant weaknesses in the measureof protection and security offered by mininglicences as compared to contracts of work. Ifnothing else, one of the strongest objectionsvoiced to the mining licence system, as introducedby the 2009 Minerals & Coal MiningLaw, seems to have been vindicated. Mininglicences definitely do not offer mine ownersthe same level of protection and securityoffered by contracts of work.Based on the Churchill Mining experienceto date, it would be a mistake for mine ownersto assume that the Central Government isgoing to be very pro‐active in investigatingthe activities of Regents who may have actedimproperly in revoking mining licences.Mine owners would do well to recognizethe critical importance of reducing theirexposure to mining licence cancellation riskby ensuring they are scrupulously careful incomplying with the terms of their mininglicences and with all other applicable lawsand regulations. In this regard, forestryissues should receive particular attention.At the same time, the practical ability toeffectively challenge, in the courts, improperrevocations of mining licences may well belargely illusory. Regardless of the ultimateoutcome of Churchill’s appeal, the cancellationof the mining licences is a clear wake‐upcall for all mine owners and potential miningindustry investors in Indonesia.q Bill Sullivan is a licensed foreign advocatewith Christian Teo Purwono & Partners, aJakarta‐based, Indonesian law firm and leader inIndonesian mining law and regulatory practice.Contact the author at: bsullivan@cteolaw.com.

EventsCOALTRANS COMES TO MONGOLIACOALTRANS has been keeping the coalind ustry up‐to‐date for many years and in2011 organizers are introducing an emergingcoal power in Mongolia to the event. Theinaugural Coaltrans Mongolia will be at theChinggis Khaan Hotel in Ulaanbaatar onJune 21 and 22.Mongolia is at the beginning of an economictransformation resulting from thespectacular development of its resource‐richlandscape and world‐class deposits of coaland other minerals. Coaltrans Mongolia willpresent a unique opportunity to see andunderstand at first hand the developmentsof one of the last remaining coal frontiers.The event will include presentations frompublic and private sectors including Mong ‐olian government officials from the Ministryof Minerals and Energy and Erdenes MGLTavan Tolgoi, among others. They includeMinister for Natural Resources and EnergyD Zorigt, Erdenes MGL executive director BEnebish, Minerals Authority of Mongoliachairman D Batkhuyag and MongolianMining Corporation CEO G Battsengel.Coaltrans Mongolia will address:• Spectacular growth prospects for theMongolian economy, coming on the back ofdevelopment of the country’s wealth of mineralassets with reserves estimated in valueof $1.3 trillion.• Opportunities that many large scale coalinvestments offer – in particular TavanTolgoi containing 6.4 billion tonnes of cokingand thermal coal which will be privatized.• The prospects for annual exports of 25‐40 million tonnes of coal into China and inthe longer term through Russia.• The considerable challenges facingMongolian transport infrastructure in deliveringcoal exports across the border intoChina..• The challenge of operating coal mines inextreme weather conditions as well as thescarcity of water.Coaltrans Mongolia will follow CoaltransAsia, which this year marks its 17th edition.It will be from May 29‐June 1 at BICC in Bali,Indonesia. Coaltrans Asia offers playersacross the coal industry not only an invaluablenetworking experience but a uniqueopportunity for discussion of the most pressingissues affecting Asia's coal sector.Australia’s coal industry has had a challengingstart to 2011 with floods impactingproduction. Coaltrans Aust ralia in Brisbane,Queensland, on August 22 and 23, willexplore the challenges facing Australia's coalindustry.International presence at AIMEXAIMEX – Asia‐Pacific’s International MiningExhibition 2011, to be held in Sydney,Australia from September 6‐9, has signed upa number of international pavilions, whichgive smaller suppliers a venue to show theirproducts and services to the Australian andAsia‐Pacific mining sectors.International pavilions featuring includethe US, Germany, China, India, South Africa,Canada and France. One of the largest pavilionswill be Germany, at around 600 squaremetres and with nearly 20 companies signed,including Voith, Eickhoff, Siemag andSchaeffler. Reed Exhibitions’ Intern at ionalSales Group’s German‐based internationalsales & marketing manager Dominik Baiatsays German manufacturers and supplierssee AIMEX as being a key exhibition due to anumber of factors. “The size of our pavilionis a reflection of global interest in Australiaand the standing of this exhibition as aworld‐class event, and gateway to Asia. Andas the show takes place only every fouryears, it presents a unique gathering of buyersfrom all over Australia and Asia.The US Pavilion, covering 264 squaremetres, will feature suppliers, both existingand those new to the Australian market, supportingPresident Obama’s National ExportInitiative (NEI). It will include ‘sub‐pavilions’from Pennsylvania and West Virginia,both major coal‐mining regions.2011 calendar of events17th Coaltrans Asia, May 30-June 2, Bali, Indonesia.www.coaltrans.comMines & Money Beijing, June 14-15, Beijing, China.www.minesandmoney.com/beijing/Clarence Moreton Coal and Energy Conference, June 14-15,Brisbane, Australia. www.training-conferences.com.auAttracting, Skill Development & Retention for the ResourceSector, June 15-16, Brisbane, www.criterionconferences.com7th Balikpapan Expo, June 16-18, Balikpapan, Indonesia.www.sinarexpoprima.comCoaltrans Mongolia, June 21-22, Ulaanbaatar.www.coaltrans.comSafety in Mining Conference, June 21-22, Perth.www.criterionconferences.comLongwall USA 2011, June 21-23, Pittsburgh, PA.www.longwallusa.comMcCloskey Coal USA, June 23-24, New York.www.conf.mccloskey.comAMEC Convention, June 28-30, Perth, Australia.www.amecconvention.com.auGlobal MInES Sydney 2011, July 4-6.www.acevents.com.au/mines2011India Coal 2011, July 26-27, Kolkata, India.www.asappmedia.com/eventsWater Management in Mining, July 26-27, Brisbane Australia.www.watermgmtmining.com.auCOAL-GEN 2011, August 17-18, Columbus, Ohio, USA.www.coal-gen.comCoaltrans Australia, August 22-23, Brisbane, Australia.www.coaltrans.comFinancing & Investing in Coal, September 5-6, Singapore.www.coaltrans.comAIMEX 2011, September 6-9, Sydney, Australia.www.aimex.com.auMcCloskey China Coal Import & Export Forum and AsiaPacific Coal Outlook, Beijing, China. www.conf.mccloskey.comDiscover Mongolia, September 8-10, Ulaanbaatar, Mongolia.www.discovermongoliaforum.com27th International Coal Supply Contracts & TransportLogistics, September 12-16, Oxford, UK. www.coaltrans.comIndian Coal Markets Conference, September 27-28, NewDelhi. www.conf.mccloskey.comCoal Trading and Risk Management, September 27-29,Singapore. www.coaltrans.comLongwall 2011, October 24-25, Hunter Valley, NSW, Australia.www.longwallconference.com.auJune 2011 l Coal Age Asia l 37

Supplier newsSIEMENS’ SINGLE LARGEST MOBILE ORDERSIEMENS Industry has received its biggestmobile mining order from HitachiConstruction Truck Machinery to provide 50additional EH4500 trucks equipped withSiemens’ AC‐drive technology to IndonesiabasedKaltim Prima Coal (KPC), whoalready has a fleet of 79 EH4500 trucks operatingin its mine.Siemens Industry Solutions Division’strucks business manager Clive DeSouzasays, “Siemens is thrilled with this largeorder. With this win, KPC will now have thelargest fleet of mining trucks with Siemensdrives operating in the world. Our reliable,innovative mining truck drive technology,together with a strong service team on theground, exceeded the machine availabilitytargets. This was critical to the customerplacing a repeat order with Siemens.”Unlike conventional DC drive technology,AC drives require virtually no maintenancebecause of its brushless operation. SiemensAC drives also provide higher top speedsand better gradeability.In addition, the Siemens drive technologyincorporates several patented safety featuressuch as anti‐rollback, which prevents trucksfrom rolling back on inclines, and slip‐slidecontrol, which helps control skidding in wetweather conditions. Another key attribute isthe cruise control feature.38 l Coal Age Asia l June 2011Siemens will also provide a permanent onsiteservice team to assist with the initialoperation and long‐term reliability of themachines. The trucks are expected to be fullyoperational by December 2012. When completed,KPC’s fleet will include 129 HitachiEH4500 trucks.KPC is one of the world’s largest thermalproducers and exporters of thermal coal, andoperates six to 12 individual pits at any time.Its coal production volume was 40.3 milliontonnes in 2009. It is owned by BumiResources.Eurasian fits Erlau TPCsTYRE protection chains from Erlau are helpingto boost productivity at one of EurasianNatural Resources Corporation’s major miningprojects in Kazakhstan. The chains areprotecting the tyres on a CAT 993F wheeledloader at the iron ore mine of Sokolov‐SarbaiMining Production Assoc iation (SSGPO).Kazakhstan is a new mining powerhousebut it has not always been this way. Twentyyears or so ago if anything at all was knownabout Kazakhstan it was as the SovietUnion's nuclear testing site and an environmentallydisastrous cotton‐growing project.Today, this large, land‐locked, country is amajor source of fossil fuels and base and preciousmetals including chromite, bauxite,This Cat 993F operating at SSGPO’s ironmine in Kazakhstan is fitted with ErlauGRANIT PLUS X22 tyre protection chains.coal, cobalt, copper, gold, iron, lead, manganese,molybdenum, natural gas, nickel, oil,silver, tungsten, uranium and zinc.Since independence in 1991, Kazakhstan,the second largest of the former Sovietrepublics has, through a series of partnershipswith foreign investors and resourcecompanies pursued a program to revitalizeand widen its mining and oil industries.Where major resource companies are fallingover themselves to bring these riches to marketthere is bound to be excitement amonginternational suppliers of heavy plant,equipment and services.Amongst the miners, Eurasian NaturalResources holds 10 properties in Kazakhstanincluding the Sokolov‐Sarbai MiningProduction Association (SSGPO), Kazakh ‐stan's largest iron ore producer employing18,500 and, according to available figures,ranking 11th in the world. SSGPO's confirmediron ore resources total 4.2 billiontonnes and reserves a further 1.5 billionwhich, at current production rates suggests amine life of around 40 years.The operation includes the Sokolovsky,Sarbaisky, Kacharsky and Korzhinkolskiyopen pit mines, the Sokolovsky undergroundmine, dolomite, limestone and bentonitequarries, and associated crushing,concentrating and pelletizing facilities.

Supplier newsDuring 2010 Eurasian acquired SSGPO’sfirst CAT 993F wheeled loader which is poweredby a CAT C32 ACERT engine generating780 kW (1050 hp), with a bucket breakoutforce of 709.2 kN. A 23.7 cubic metrecapacity bucket can hoist up to 22.7 tonnes ina single pass.Eurasian is protecting the 993K's MichelinXLD D2, 50/65 R51 tyres from cuts and theabrasive iron ore with a pair of Erlau GRAN‐IT PLUS X22 tyre protection chains. Theywere chosen for their long‐life, light‐weightenergy‐saving links and the product supportavailable from the leading supplier. Eachweighing 3.5 tonnes, the chains were fitted byErlau engineers and to ensure optimum servicelife, Erlau provides on‐site support ‐ 24/7.Erlau leads the world in the supply andservice of tyre protection and traction chains.With 65% of the market Erlau Tyre Prot ec t ‐ion and Traction Chains are an essentialaccessory in mineral winning, demolition,steel‐making and scrap handling.FLSmidth wins handling projectGLOBAL infrastructure provider FLSmidthhas signed a contract worth more than $135million with PT Adaro Indonesia to supplymaterial handling equipment to its coal minein the Tanjung district of South Kalimantan,Indonesia.FLSmidth is a leading supplier of completeplants, equipment and services to the globalcement and minerals industries while PTAdaro Indonesia is a subsidiary of Indonesianconglomerate PT Adaro Energy Tbk.The material handling equipment will bepart of Adaro’s expansion of mining operat ‐ions and will decrease the average haulingdistance of overburden trucking operations.The contract comprises an out‐of‐pit overburdencrushing and conveying system,consisting of FLSmidth ABON sizers,RAHCO overland conveyors and RAHCOmobile stacking conveyors. The system hasan hourly capacity of 12,000 tonnes and anannual overburden vol ume of 40 millionbank cubic metres (bcm). The contractual elementsregarding construction, supervisionand management, as well as field service,will be supplied by FLSmidth Indonesia.FLSmidth’s CEO Jørgen Huno Rasmussensays, “Being the first of its kind in Indonesia,the project will act as a catalyst for otherpotential orders in the region and for ourparticipation in the continued expansion ofAdaro’s mining activities, which makes thecontract significant for FLSmidth.”Handling of overburden represents one ofthe major costs and challenges in connectionwith open‐pit mining operations. As miningcompanies expand and increase the depth oftheir mines, the amount of overburden risesand the demand for handling and removalequipment grows.FLSmidth's conveying systems can helpsolve this issue as a technological, economicaland environmental alternative to traditionaltransport methods. FLSmidth has longbeen working on this solution in collaborationwith mining companies across the globeand the contract with Adaro is now pavingthe way for this technology in Indonesia.Adaro Energy’s president director Gari b ‐aldi Boy Thohir says, “Adaro has increasedits production every year since 1992 and weare now among the top five exporters ofthermal coal in the world ‐ and all from justone site. Overburden mining and haulage isone of our biggest challenges.“In 2010 the mine hauled 226 million bcmof overburden and this year it plans to movemore than 290 million bcm. The equipmentsupplied by FLSmidth will increase the efficiencywith which this large amount of overburdenis transported and help secureAdaro's unbroken track record of continuousgrowth.”Eurotire opens training centreEUROTIRE has opened its training centre inthe city of Dnepropetrovsk, Ukraine. TheEurotire Training Centre is an educationalJune 2011 l Coal Age Asia l 39

Supplier newsfacility for Eurotire employees and customersalike with training available in technical,safety, commercial and industry areas.The aim of the training centre is to furthereducation in the mining industry regardingall OTR related matters. Long‐time OTR veteranand experienced OTR instructor JackJames has been appointed director of thecentre.In March the Eurotire Training Centregraduated the first official Eurotire certifiedpersonnel. The training included technical,commercial and safety instruction, a visit tothe Eurotire Ukraine factory, and a two‐daymine site visit.Eleven Eurotire sales representatives fromGhana, Brazil, Russia, Kazakhstan andUkraine attended the first training session.As part of the practical training, mine sitevisits were undertaken to large‐scale miningoperations in the region and during the visitstrainees were given the chance to applyclassroom instruction on safety and technicalmatters to the real world of mining.Additionally, participants were given anextensive factory tour of Eurotire’sUkrainian manufacturing facility.Jack James says, “Everyone left the coursewith a better understanding of the OTRindustry and Eurotire’s method of selling.”Eurotire is a leader in the design, manufacture,service and support of OTR tyres forthe surface mining industry. Its history spansmore than 50 years with its tyre productsbeing shipped under the Eurotire brandsince 2005.Eurotire’s products are in operation onhaul trucks, wheel loaders and other heavysupport trucks and wheeled equipmentused in the world’s most demanding surfacemining applications.With distribution, service, sales and logisticsteams strategically located on five continents,and with products becoming knownfor their quality and durability, Eurotire iswell positioned to support its global customersin reaching their production goals.PT Atlas Copco Fluidcon’s generalmanager Robin StephensAtlas Copco and Fluidcon combinePT Atlas Copco Indonesia and PT FluidconJaya have combined service operations andproduct development to become one organization,PT Atlas Copco Fluidcon.Atlas Copco Indonesia had operated PTFluidcon Jaya as an independent companysince its acquisition in 2008, while continuingto support Atlas Copco products andservices separately.PT Atlas Copco Fluidcon’s general managerRobin Stephens says by integrating thecompanies and implementing an intensecross‐training program, customers will benefitfrom the increased service capability andefficiency of a new, consolidated company.“By the end of 2011 all former Fluidconemployees will be trained as Level 1 AtlasCopco service technicians. Likewise, allAtlas Copco service technicians will betrained to install and service Fluidcon products.This company is people – Fluidcon andAtlas Copco employees – it’s all about workingtogether and taking care of the serviceneeds of our customers.”Headquartered in Jakarta, the new 350‐member PT Atlas Copco Fluidcon companyoffers capital equipment field support andauxiliary product installation through itsJakarta office and 11 regional hub locations.Close customer support is provided fromremote and in‐mine personnel in about 20additional locations.Robin Stephens says the Fluidcon namehas been a strong presence in the Indonesianmining industry for 25 years. “The company’sengineering staff understand the needsof the region and this includes the productsto support remote field service technicians.“In addition to being a trusted name in theinstallation of products such as fire suppressionand auto lubrication systems on haultrucks, loaders and other equipment, thecom pany produces a line of fuel decontaminationand monitoring systems. Other productsinclude mobile workshops, hyd raulichose manufacturing, hydraulic training modulesand electronic particle detectors.”Smartminer spreads its wingsMINING technology services companyRunge has expanded coverage of theSmartminer online mining course, which isnow available in North America. Targeted atprofessionals, technical staff in the miningindustry and those who regularly interactwith mining personnel, Smartminer helpsimprove productivity by upskilling a globalworkforce quickly and easily.Smartminer combines Runge's miningexpertise with Catalyst Interactive's contentdelivery expertise, which facilitates thedelivery of training solutions and benefit to aglobal workforce irrespective of their locationor time zone.Runge's global training manager Gary Gib ‐son says the Runge Professional Devel ‐opment course is an alternative for the growingnumber of customers who, for variousreasons like remoteness and travel costs, cannotattend a classroom‐based course or whomay prefer a learning environment wherethey can progress their learning at their ownpace in an interactive manner.“Businesses require flexible and effectivelearning solutions to keep pace with theglobal dynamic business world of mining.Learning solutions need to include processesand technologies that provide access totraining and development for the business aswell as knowledge management and performancesupport systems. With this frameworkin place, training provided can befocused, workflow‐specific and in a 'rightplace, right time, right amount' mode.”The mining industry's perception of traininghas progressively changed over theyears. Rather than being seen solely in isolationfocusing on a single mine site, it is nowrecognized as more of an enterprise‐levelsolution meeting the needs of global organizations.Forward‐looking global miningcompanies are more and more investing intheir future capability now and increasinglystandardizing their business practices andprocesses across their myriad of operationsworldwide.Gary Gibson says, “Those mining organizationswhich understand the cyclical natureof the industry are taking the opportunity toinvest in more effective and efficient ways ofdelivering training to their staff irrespectiveof where in the world they are. We arepleased to offer the Smartminer 'Introd ‐uction to Mining' course to a global audienceon a 24/7/365 basis no matter what time zoneor region our customers' staff are located in.”Blended learning solutions integrate e‐learning methods with traditional instructorledmethods. By using this blendedapproach to learning, upskilling of staff cantake on a more holistic and structuredapproach rather than being a one‐off, randomoccurrence.Some learning models even extend the traditionalparameters of blended learning toinclude virtual online classrooms, self paced,40 l Coal Age Asia l June 2011

Supplier newsprint‐based training, internet‐deliveredtraining, mobile training and mentoring orinformal training via a community of practice.Courses can be provided in a Taas(Training as a Service) mode as a fully hostedservice globally or installed within miningorganization's existing LMS (Lear n ingManagement System).Irresp ec t ive of the model adopted, itsfunction is to deliver, at the moment ofneed, the knowledge and training directlylinked to performance improvement formining professionals and people wishing toenter or interface with the mining andresources industry worldwide.Sedgman Mongolian contractsCOAL mine engineering provider Sedgmanhas secured contracts valued at US$31 millionin Mongolia, including its first internationaloperations management contract.The contracts include US$19 million ofEngineering, Procurement and ConstructionManagement (EPCM) work for the secondstage of Energy Resources LLC’s coal handlingand processing plant (CHPP) at UHGin the South Gobi region. This followsSedgman’s initial EPCM contract for theCHPP at the coal mine’s first stage. The plantwas the first to be built in Mongolia.Sedgman’s Coppabella plant in Queensland.Sedgman has also been awarded a US$12million worth of contracts ‐ an operationalreadiness contract and a three‐year contractto manage the CHPP at UHG 1. It will be thecompany’s first operations management contractoutside Australia where Sedgman has11 coal and metals operations contracts.Sedgman's chairman Russell Kempnichsays the contracts are further evidence thecompany is delivering on its internationalexpansion strategy. “We are pleased to beexpanding our relationship with EnergyResources in one of the world’s mostprospective coal regions.“These contracts are significant forSedgman. We are proud of our work on thecoal plant at UHG 1, a development whichis setting the standard in a region ofMongolia that is forecast to grow rapidly tomeet the coal demands of China’s majorsteel makers.“The additional contracts for managementof the first plant and for EPCM serviceson the second plant show recognitionof our ability to deliver on projects, includingthose in challenging and remote locations,and our ability to develop strongclient relationships which result in repeatbusiness.“We are also pleased to be expanding ouroperational management services internationally,beyond the Australian market wherewe have established a strong position.”Sedgman is engaged in initial works onboth the EPCM and CHPP projects. Thethree‐year operations management contractfor the UHG1 plant is expected to begin inthe fourth quarter of the 2011 financial year.Sedgman was established in 1979 and is aprovider of mineral processing and associatedinfrastructure solutions to the globalresources industry. Specializing in design,construction and operation of coal handlingand preparation plants, Sedgman is recognizedinternationally for its mineral processingand materials handling technologies.June 2011 l Coal Age Asia l 41

Product newsP&H 4100XPC IS AN AUSSIE FIRSTP&H MinePro Services (Australasia) has rec ‐eived an order from Rio Tinto CoalAustralia’s Hail Creek Mine in the BowenBasin, Queensland, for an AC drive P&H4100XPC electric rope shovel. It will be thefirst AC drive P&H 4100XPC shovel inAustralia.The AC drive P&H 4100XPC is a heavyduty electric rope shovel that provides a108.9 tonne payload capacity specificallydesigned to operate in high productionmines. The 4100XPC is the preferred ultraclassshovel choice for high productionmines around the world. There are morethan 200 of the 4100‐Series shovels hard atwork worldwide.Hail Creek Mine, 90km southwest ofMackay in central Queensland, annuallysupplies steel mills in Asia and Europe withup to 8 million tonnes of hard coking coal. Itsresources were discovered in 1968 with projectfeasibility work completed in the 1970s.In 2001 Hail Creek Mine started constructionand was officially opened in 2003.P&H MinePro Services Australasia’s directorsales and marketing Leo Kaloglou saysthe new AC drive P&H 4100XPC shovel isscheduled to walk off the pad in 2012. “P&Hshovels represent over a century of productengineering, manufacturing, maintenanceand training. P&H’s ongoing commitment tocontinually enhance equipment performanceas well as striving to reduce our customers’overall cost per tonne has resulted ininnovative designs unique to P&H shovels.“This shovel will deliver exceptional longtermproductivity and combines a solid reputationof reliability with the provenCenturion control system and AC drives.”Rio Tinto Coal Australia’s managing directorBill Champion says the new shovel willjoin two P&H 9020 draglines and the existingshovel, also a P&H 4100XPC, at the HailCreek operations. “Hail Creek Mine puttheir first P&H machine, a 9020 dragline, towork in 2004.“Since then, Hail Creek Mine’s fleet of 3P&H machines have achieved a total of morethan 85,000 operating hours in the challengingcentral Queensland climate. This newshovel will enable Hail Creek Mine to maintainits production rate, as overburdenincreases.”Few original equipment manufacturerscan draw on such a wealth of experience asP&H MinePro Services Australasia. Its parentcompany, P&H Mining Equipment ofMilwaukee, Wisconsin, USA ‐ a core businesssegment of the holding company JoyGlobal ‐ has served the international miningcommunity for more than125 years.Personal monitor makescoal mining saferTHERMO Fisher Scientific believes its newpersonal dust monitor, the PDM 3600, willmake the coal mining industry safer. Theaim of the monitoring device is to help minerslimit how much dust they breathe.The monitor is worn by miners on the hip,weighs about 2.7kg and displays how muchcoal dust a miner is being exposed to ‐ at agiven moment and cumulatively over a shift.Thermo Fisher Scientific worked for morethan 10 years to develop and test the PDM3600 in collaboration with the US NationalInstitute for Occupational Safety and Health(NIOSH).NIOSH branch chief for dust control, ventilationand toxic substances Ed Thimonssays it is the first major advancement inmonitoring miners’ exposure to respirablecoal dust. Before the new device, minerswould wear a dust monitor for several shiftsevery two months. Filter samples were sentto a lab for tests and results were reportedafter several weeks.NIOSH says that in recent years, there hasbeen an increase in black lung diseaseamong miners working in West Virginia andAppalachian states in the US. The disease isA P&H 4100XPC electric rope shovel at work in a coal mine.believed to be caused by breathing in coaldust and new mining equipment churns updust quicker than older machines – leadingto the miners inhaling more coal dust.Miners are now also working longer shifts.The US federal Mine Safety and HealthAdministration says that all coal operatorsshould employ the PDM 3600. But not everyoneagrees. US National Mining Assoc ‐iation’s vice president of safety, health andhuman resources Bruce Watzman says,“There are questions that remain as towhether or not the device has been testedadequately and whether its current configurationmakes it ready for prime‐time use as acompliance sampling tool.”Thermo Fisher Scientific’s first‐quarterrevenues increased 4% to a record $2.72 billion.The company’s president and CEOMarc Casper says, “We are off to a good startto the year, with a solid first quarter performance.”“We continued to expand our presence inAsia‐Pacific markets, and announced plansto open another new facility in China nextyear, where we will produce laboratory consumablesfor local life sciences customers.”Still plowing after 10 yearsBUCYRUS automated plow systems havecarried out 10 years of successful operationin a number of mines in Liaoning Province,northern China. The first Gleithobel plowbegan operating in January 2001 and is still42 l Coal Age Asia l June 2011

Product newsgoing today. It was the first automated plowsystem in China.Equipped with 2 x 315 kW drives anddesigned for cutting very hard coal, the plowoperates on a 200 metre face with a seamheight of 1.25 metres.Bucyrus automated plow systems aremaking a significant contribution to coalproduction throughout the world in countriesincluding China, Russia, CzechRepublic, Germany, Kazakhstan, Mexico,Poland, Ukraine and the United States.Since a former Bucyrus company inventedthe plow in 1937, Bucyrus has stayed on thecutting edge of plow technology by addingnumerous features as well as boostinginstalled power to allow faster extraction. Incontrast to a shearer, which requires considerableheight to operate, the very compactplow can practically operate in seams as lowas 800cm.Bucyrus offers two types of plow ‐ theReisshaken or base‐plate plow designed forextremely thin seams and the Gleithobel(GH or gliding plow), the world’s most powerfullongwall mining system for maximumproductivity and minimum cost of ownershipin medium and thin seams, even inhard coal.Bucyrus plow longwalls can be fully automatedwith no operator required at the face.This not only enhances productivity but isalso a great safety feature.Over time Bucyrus plow systems haveshattered world production records for thinseamlongwall production and productivity– and the combination of this experience,ongoing R&D and a passion for continuousimprovement maintains Bucyrus’ leadershipin this specialized area of coal mining.The Bucyrus Gleithobel GH1600 plow.With installed power of up to 2 x 800 kW,Bucyrus plows extract coal at rates of up to3500 tonnes/hour. As a result of their uniquefeatures and high performance, Bucyrusautomated plow systems are the preferredmining method for seams below 1.8 metres.A Joy longwall faceGujarat longwall boosts Joy salesTHE awarding of the Gujarat longwall contractin New South Wales to Joy Globalhelped lift the company’s net sales in the firstquarter of 2011 by 19% year‐on‐year to$US869.5 million as demand for its undergroundequipment continues to improve.The company, which reported a 32% higheryear‐on‐year operating income for thequarter to January 28, 2011, to $154 million,expects expansion activity in mining aroundthe world to continue to drive its growth.Joy president and chief executive MikeSutherlin says, “We are very pleased withthe solid results in the first quarter.Compared to a year ago, income was up 34%on a 19% sales increase, resulting in incrementaloperating leverage of over 25%.Bookings were up 18% sequentially from thefourth quarter of 2010, with strong orders forboth original equipment and aftermarket.“The aftermarket is particularly encouragingbecause it indicates that our customerscontinue to increase their production levelsin response to growing demand. The strongorder rate is in line with our market outlookthat customer capital expenditures willincrease in response to improving commoditydemand and limited excess mine capacity.As a result, we continue to see a multi‐yearexpansion ahead that will become the secondleg of a long growth period for mining.”Original equipment orders in the undergroundbusiness increased by $327 millionfrom the previous year, largely attributableto the major longwall system at Gujarat andto continued strong demand for room andpillar equipment in the US.Joy won the Aus$90 million contract tosupply longwall equipment for the NRE No1 colliery in 2010. The longwall order was afull‐scope, turnkey solution, including allancillary equipment needed to operate thelongwall and a follow‐on life cycle managementcontract. It is anticipated that longwallprojects in the future will increasingly adoptthis contract structure.Net sales in the underground businessincreased 21% in the first quarter to $511 million.Original equipment sales were up 11%,led by longwall deliveries to China androom and pillar sales in the US. Aftermarketsales were up 29% due to higher parts andrebuild sales. Parts sales increased from lastyear in most regions, led by China and theUS, while rebuilds were also up in the US,Africa and the UK.Mike Sutherlin says the seaborne marketfor thermal coal continues to be driven bydemand from China and India. “China andIndia's share of seaborne coal trade has doubledin the last three years to 26%. China'sdomestic coal production has been growingover 15% per year and is expected to continuethat growth. India produced about 550million tonnes of coal in 2010 and has plansto grow to 700 million tonnes in five years.“Despite this strong domestic growth,imports will continue to grow in China andIndia. China coal imports are expected togrow from 166 million tonnes in 2010 to 180million tonnes in 2011. India's imports areexpected to grow from 47 to 60 milliontonnes over the same period. This continuedgrowth in demand has raised contract pricesfor seaborne thermal coal from $98 per tonnelast year to $125 per tonne for the first quarterof 2011. As a result, there are a large numberof mine expansion projects in seaborneexporting countries such as Australia, SouthAfrica and South America.”June 2011 l Coal Age Asia l 43

COAL BRIEFSAKR to start productionPT AKR Corporindo will start coal productionin coal concessions owned by itssubsidiary, PT Anugerah Karya Raya inMuara Teweh, Central Kalimantan, thisyear. Anugerah Karya has 5 mining concessionswith acreage of 24,388ha in theregion. To support production, AKRplans to invest in infrastructure throughdevelopment of coal terminals at MuaraTewe and Teluk Timbau, on Barito River.PSL Group invests in coalSGX‐listed PSL Holdings, an engineeringspecialist, is investing in Indonesia's coalMining industry. The investment will bemade by PSL's wholly‐owned subsidiaryPSL Energy Resources, which has signedtwo agreements with Indonesian businessmanCharles Melati in respect of aproposed investment in Sindo Resources.Adavale signs agreementsAdavale Resources has signed joint ventureagreements on 8 concessions totall ‐ing 24,400ha in East and South Kalim ‐antan, through subsidiary Adavale Nus ‐antara Resources. Adavale has beengranted an exclusive period to carry outdue diligence.ADVERTISING INDEXAEL Mining Services ..............33AIMEX 2011 .............................3AMEC 2011 .............................. 9Ashland Hercules Water Tech 38Atlas Copco Fluidcon ............. 25Baldor ........................................8Beumer ...................................31CBC Indonesia .......................44Coal Handling & Storage ........13Coaltrans Asia ........................19Coaltrans Mongolia ..................7Delkor ................................... IFCESCO Sebba .........................BCEurotire ...................................41GPX Surveys ..........................11Hazemag ...........................34/35Hexindo ..................................44Indo Asia Resources ..............24KAMAT ................................... 21Linatex Weir ......................... IBCLudowici .................................27Marco .....................................23MHE Demag............................17Micromine Consulting .............39RUD Erlau ..............................29Steinert Australia ..................IBCSustainability .......................... 2644 l Coal Age Asia l June 2011