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2nd Annual Petcoke Conference
USING COAL & PETCOKE
The Indonesian Experience
Presented by
Frederick J. Murrell
President
Adaro Envirocoal Americas
For
McCloskey’s 2nd Annual Petcoke Conference
19 – 20 July 2004
Houston Texas
2nd Annual Petcoke Conference
A Few Observations

Indonesian coal has been blended on several occasions
with petroleum coke.

Adaro’s experience has been with cement producers and
electric power plants.

Adaro is comfortable that petcoke can be successfully
blended with high volatile matter, low sulfur coal.
2nd Annual Petcoke Conference
A Few Observations

Local laws affecting petcoke use.

Local laws affecting coal use.

“New fuel” permit applications.

Blending restrictions.

Differences in hardness (HGI) of products.

Different response to rainfall.
2nd Annual Petcoke Conference
Indonesian Coal
2nd Annual Petcoke Conference
Major Mine Locations
THAILAND
Sulu Sea
ala
M
South China Sea
Pac
SABAH
a
cc
ait
S tr
BRUNEI
MALAYSIA
Medan
SARAWAK
sa r
Berau
Singapore
Manado
ka s
SUMATRA
Str
ait
Kuala Lumpur
Pekan Baru
Gunung Bayan
Tanito Harum
Pontianak
ri
Ka
ta
KALIMANTAN
Str
Kideco
ait
iS
it
tra
Palembang
Bengkulu
Balikpapan
Seram Se
SER
SULAWESI
Kendilo
Adaro
Banjarmasin
HELMAHE
Maluku Sea
Bukit Baiduri
ABK
Multi Harapan
ma
Jambi
wa
nta
Me
PTBA
Padang
KPC
Indominco
Ma
Banda Aceh
Arutmin
Sebuku
Arutmin
Jorong
PTBA
Bandar Lampung
Ban
Java Sea
Makassar
Jakarta
JAVA
Surabaya
BALI
Indian Ocean
SUMBAWA
Denpasar LOMBOK
TIMOR
Timor S
2nd Annual Petcoke Conference
Coal Quality

The coal industry has focused on the exploration and
mining of bituminous and sub-bituminous coal with the
latter having sub-classifications which can be defined as :
“C” Quality 4200-5000 kcal/kg(adb) 30-40% TM(ar)
“B” Quality 5000-5800 kcal/kg(adb) 20-30% TM(ar)
“A” Quality
+5800 kcal/kg(adb)
-25% TM(ar)
2nd Annual Petcoke Conference
Coal Quality of Selected Companies
Adaro
Kaltim Prima
Bukit Asam
Arutmin
Kideco
22.5
16.5
9.9
13.7
14.0
Sub-bit"A"
Bit/Sub-bit "A"
Sub-bit "B"
Bit/Sub-bit "C"
Sub-bit "B"
5800
6700/5900
5500
6500/4800
5500
24
12/17
23
9/35
22
1
5/5
8
12/4
2
Volatile Matter (adb %)
40
39/40
38
40/38
42
Sulphur (adb %)
0.1
0.6/0.3
0.5
0.7/0.2
0.2
HGI
46
47/46
50
38/70
50
Production(Mt 2003)
Coal Rank
Kcal/kg (adb)
Moisture (ar %)
Ash (adb %)
2nd Annual Petcoke Conference
Coal Quality
Adaro’s sub-bituminous grade “C” Wara and Warukin
deposits contains more than one billion tonnes of low ash,
low sulphur coal
2nd Annual Petcoke Conference
Company Operations
2nd Annual Petcoke Conference
Production By Company
Actual
Forecast
Major Producers
2000
2001
2002
2003
2004
2005
2006
Adaro Indonesia
15.5
17.7
20.8
22.5
23.0
24.0
26.0
Kaltim Prima Coal
13.1
15.5
17.6
16.5
21.0
23.0
25.0
Kideco
8.1
10.4
11.5
14.0
15.0
15.5
16.0
Arutmin
7.8
9.6
10.6
13.7
15.0
16.0
16.0
10.7
10.2
9.5
9.9
10.3
11.0
11.0
Berau
4.9
6.7
7.1
7.6
8.0
8.5
9.0
Indominco Mandiri
3.7
4.4
5.3
6.5
6.8
7.0
7.0
Gunung Bayan
1.2
2.2
2.6
4.5
5.0
5.0
5.0
Jorong
1.2
2.6
2.3
3.0
3.0
3.5
4.0
Kitadin
1.3
1.7
1.9
3.0
3.0
3.5
4.0
67.5
81.0
89.2
101.2
110.1
117.0
123.0
Bukit Asam
Sub-Total
Million Mt
2nd Annual Petcoke Conference
Production By Company
Actual
Small-Medium Producers
Est
Forecast
2000
2001
2002
2003
2004
2005
2006
Anugerah BK
0.0
1.0
1.7
2.7
2.8
3.0
3.0
Bukit Baiduri
2.0
2.0
2.0
2.5
3.0
3.0
3.0
Sebuku
1.5
2.0
2.1
2.0
2.2
2.0
2.0
Tanito Harum
1.0
1.6
1.8
2.0
2.5
3.0
3.0
Multi Harapan
1.2
1.3
1.0
1.6
1.5
1.0
1.0
Lanna Harita
0.0
0.3
1.0
1.3
1.5
2.0
2.5
Antang Gunung Meratus
0.3
0.4
0.5
0.8
1.0
1.0
1.0
Tanjung Alam
0.3
0.7
0.7
0.8
1.0
1.5
2.0
Sumber Kurnia
0.0
0.0
0.8
0.8
1.0
1.0
1.0
Baramarta
0.0
0.0
0.6
0.8
1.0
1.0
1.0
Others
2.4
2.5
2.3
2.0
1.2
1.2
1.4
Coops, New Mines
2.5
2.5
5.0
5.3
7.8
11.5
14.0
Sub-Total
11.2
14.3
19.5
22.6
26.5
31.2
34.9
Million Mt
2nd Annual Petcoke Conference
Production Summary
Actual
Forecast
Summary
2000
2001
2002
2003
2004
2005
2006
Major Producers
67.5
81.0
89.2
101.2
110.1
117.0
123.0
Small-Medium Producers
11.2
14.3
19.5
22.6
26.5
31.2
34.9
Total Production
78.7
95.3
108.7
123.8
136.6
148.2
157.9
Production Growth
2.6
16.6
13.4
15.1
12.8
11.6
9.7
Million Metric Tonnes
2nd Annual Petcoke Conference
Infrastructure
Operator
Region and port Operational
Max
vessel
size
Actual
capacity
2003
Future
capacity
2006
DWT
Mt/yr
Mt/yr
180,000
20,000
150,000
65,000
90,000
200,000
65,000
20.0
12.0
10.0
3.0
10.0
6.0
20.0
12.0
12.0
5.0
10.0
12.0
6.0
65,000
40,000
20,000
10.0
2.0
1.0
15.0
3.0
3.0
Geared
65,000
Unlimited
Unlimited
Panamax
40.0
40.0
10.0
3.0
5.0
15.0
5.0
5.0
132.0
163.0
Coal loading ports and capacities
Kalimantan
Kaltim Prima
Kideco Jaya Agung
Arutmin
Dermaga Prakarsa Pratama
Indonesia Bulk Terminal
Tanjung Bara
Tanah Merah
North Pulau Laut
Balikpapan
South Pulau Laut
Indominco Mandiri
Bontang
Sumatra
Tarahan
Teluk Bayur
Pulau Baii
PTBA
PTBA
General Port
Additional ship loading capacity
Self-loading vessels and
direct barging
Adaro Indonesia Floating Cranes
Kideco Floating Cranes
Berau Coal, Floating Platform
Total capacity
Offshore/River
1991 dedicated
1993 dedicated
1994 dedicated
1995 common user
1997 common user - phase I
2005 common user - phase II
1999 dedicated
1989 dedicated
1991 common user
1990
Various
South Kalimantan 3 cranes
East Kalimantan 2 cranes
East Kalimantan 2000
2nd Annual Petcoke Conference
Efficient Ship Loading
2nd Annual Petcoke Conference
Coal Supply- Overview

In 2003, Indonesia produced 123 million mt and exported
just over 90 million mt.

Second largest exporter of thermal coal.

Nearly 80% of production is ranked as sub-bituminous “A”
and “B” coals with low ash, low sulphur and low nitrogen.

Some movement to lower rank coals for domestic use.
2nd Annual Petcoke Conference
Coal Supply- Pricing

Coal prices have increased rapidly during 2004.

Indonesian coal is generally sold at lower prices despite
global supply shortages and reputation as a reliable supplier.

Indonesian sub-bituminous coal is used in Asia, Europe and
the Americas for its environmental and economic benefits.
2nd Annual Petcoke Conference
Domestic Coal In Indonesia

Domestic consumption grew from 22.3 million mt in 2000 to
31.4 million mt in 2003 but will not increase substantially
until after 2006.

Between 2006 and 2020 an additional 50 million mt per year
of new coal supply will be required to meet a forecasted
15,000 MW of new power generating demand that will be
required to support industrial growth in Java & Bali.
2nd Annual Petcoke Conference
Exports and Domestic Sales
(1)
(2)
2000
2001
2002
2003
2004
47.1
54.8
61.0
76.0
83.8
Indonesian Supply to Europe
8.5
9.6
10.3
10.5
10.5
Indonesian Supply to USA
2.2
2.4
3.3
3.6
5.0
Indonesian Exports
57.8
66.8
74.6
90.1
99.3
Indonesia Domestic Supply
22.3
25.3
29.0
31.4
32.2
Total Indonesian Sales
80.1
92.1
103.6
121.5
131.5
Indonesian Supply to Asia
(1) ESTIMATE (2) FORECAST
2nd Annual Petcoke Conference
USING COAL & PETCOKE
The Indonesian Experience
Presented by
Frederick J. Murrell
President
Adaro Envirocoal Americas
For
McCloskey’s 2nd Annual Petcoke Conference
19 – 20 July 2004
Houston Texas