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Published: 16 March 2009      

Adaro looks to improve coal supply

Indonesia's second-largest coal producer, PT Adaro Energy Tbk has confirmed that it is in negotiations to acquire a coal barging and transhipment company to improve its supply chain.

"As our coal mine is located quite far inland, it is imperative we acquire direct control of the inland waterway transportation and ship loading," Ah Hoo Chia, Adaro's operations director, said.

"We already control a portion of the mining and overland transportation and own a port facility; now we can be completely linked from pit to port.”

According to reports, Adaro is still planning a 68 km (42.25 mile) overland conveyor, alongside the existing haul road, from the excavation area, near Tanjung South Kalimantan, to the final processing facility, the Kelanis river terminal in the Barito river.

The overland conveyor would have a production target of 80 mt by 2013. Adaro’s forecast production for this year is between 42-45 mt of coal, up from 38.5 mt in 2008.


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