Vertically Integrated From Pit to Port

Coal Mining

Adaro Indonesia is the largest single-site coal producer in the southern hemisphere by production volume. For the year ended December 31, 2008 we were one of the top five thermal coal exporters globally based on tonnes shipped, one of the lowest cost coal producers in the world and also the largest thermal coal supplier to the Indonesian domestic market based on tonnes delivered. The resources were estimated at 3,444 Mt (JORC Compliant), and located at Tabalong and Balangan, South Kalimantan.

Contract Mining

Contract MiningAt present, our subsidiary SIS accounts for approximately 26% of our production capacity, and is expected to grow to 50% in the coming years. SIS total capacity in Indonesia at present is 16.4 Mt per year for coal mining and approximately 115 Mbcm per year for overburden removal. SIS undertakes overburden removal and transportation, coal extraction and transportation and partial mine reclamation activities under a 5 year contract with Adaro. SIS has 6 customers, including Adaro Indonesia, operating in East and South Kalimantan.

Hauling Road: 100% Owned and Operated By Adaro

All production from our Kalimantan operations is transported some 80 km along Adaro’s sealed all-weather road to our facilities at the Kelanis River Terminal. Coal hauling is done by twin trailer hauling rigs with a 130 tonnes total payload. The recent installation of GPS control
over the whole hauling fleet will help to achieve hauling increases safely and effectively.

Kelanis River Terminal: Crushing, Storing and Barge Loading

Kelanis River Terminal is one of the largest inland bulk terminals in the world. In the first half of 2009, the annual processing capacity at the Kelanis facility was increased from 45 Mt per year to 55 Mt per year as a result of the installation of an additional crushing system. Kelanis is maintained under a rigid preventive maintenance philosophy, and has demonstrated high levels of availability and reliability.

Barging: Many Years Experience in the Barito

Adaro’s subsidiaries, MBP and HBI operate 24 barges and 25 tugboats that transport coal along the Barito River. Adaro has entered into long-term coal barging and tugboat service contracts with six other barging contractors. Adaro has a contracted fleet of 71 barges with an average individual barge capacity of 10,300 tonnes.

Sea Channel Operations: Bottleneck Free

The Barito River is an essential transportation route for Adaro’s coal and equipment. PT Sarana Daya Mandiri (“SDM”), which is a joint venture controlled by Adaro Energy, conducted a project in 2008 to dredge a deeper and straighter channel.

With the completion of the project, the annual capacity of the river increased from 60 Mt to 200 Mt. The new channel has also improved transportation safety.

Taboneo Open Anchorage: Fast, Safe and Reliable Ship Loading

Adaro’s subsidiary MBP operates four floating cranes which are used to move coal from barges to the ships. MBP handled 10.6 Mt and 11.4 Mt of coal in the year ended December 31, 2008 and December 31, 2009, respectively.

In addition to the four MBP cranes there is another floating crane and a high capacity floating transhipper in exclusive
operation for Adaro at Taboneo.

These six units have a combined loading capacity of 125,000 tonnes per day and can load capesize vessels in excess of 200,000 dwt.

Coal Terminal: One Stop for Loading and Fuel

PT Indonesia Bulk Terminal (“IBT”) is wholly owned by Adaro Energy. IBT’s coal stockpiling, blending, loading and port terminal facility is located at a natural deep water harbor. The current capacity of IBT’s terminal is 12 Mt of coal per year. Operating 365 days a year, 24 hours a day, IBT is able to load vessels of up to 85,000 dwt at rates of 35,000 tonnes of coal per day.

IBT and Shell are working together to build a fuel storage terminal at IBT, which should become operational in 2010.

With a minimum capacity of sixty thousand tonnes, Shell will own, maintain and operate the fuel facility until 2022.