Adaro in Summary
- Five Year Financial Highlights
- 2009 Important Dates and Share Price Information
- Our Vision
- Adaro Described
- Why Adaro?
- Why Adaro?
- 1 Robust industry prospects
- 2 Good track record of growth, large reserves to support continued expansion
- 3 Amongst the world’s largest and lowest cost, vertically integrated producers
- 4 Reputable and supportive shareholders, and experienced management team
- 5 Highly differentiated product - EnvirocoalTM
- 6 Diversified and loyal customer base and high earnings visibility
- 7 Consistently improving financial profile since LBO
- 8 Growth and value ceation set to continue
- 9 Committed to corporate social responsibility
- 10 Excellent safety record
- 11 Award winning performance and standards
- Map of Operations
- Our Subsidiaries = Our Coal Supply Chain
- Vertically Integrated from Pit to Port
- Management Report
- Corporate Overview
- Our Subsidiaries Described
- Review of Operations
- Interview with Chia Ah Hoo, Director of Operations
- Special Section: Historical Photo Album
- Interview with Alastair Grant, Director of Marketing
- Health, Safety and the Environment
- Financial Review
- Interview with David Tendian, Director of Finance
- Special Section: Adaro Bond in the News
- Exploration and Reserves
- Exploring Initiatives for a Bigger and Better Adaro Energy
- Interview with Sandiaga S. Uno, Director
- Governing Adaro
- Status of Corporate Governance Practices
- Implementation of the Company’s Good Corporate Governance
- General Meeting of Shareholders (GMS)
- Board of Directors Training Programs to Enhance Competency
- Board of Commissioners and Board of Directors
- The Board of Commissioners
- Audit Committee
- The Board of Directors
- Board of Directors Meetings
- Nomination of Members of the Boards
- Internal Audit
- External Auditor
- Corporate Secretary
- Remuneration of the Boards
- Share Ownership of the Boards 2009
- Audit Committee Report
- Internal Audit Unit Report
- Interview With Andre J. Mamuaya, Director of Corporate Affairs and Corporate Secretary
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Impact of the New Mining Law
Since the Coal Cooperation Agreement came into effect in 1982, the Indonesian government has introduced many new laws and regulations affecting the Indonesian mining industry. On December 16, 2008, Indonesia Parliament passed Law number 4 of 2009, which is known as the new Mining Law. The new Mining Law, which came into effect on January 12, 2009 and which supersedes the previous Mining Law, known as Law No 11 of 1967, contains provisions relating to mining operations based on mining permits, maximum concession size, royalties and taxes, transactions with affiliated parties and subsidiaries, the use of foreign contractors as well as a requirement to align the coal cooperation agreements with the provisions of the new mining law within one year of its effective date.
A recently promulgated implementing regulation became publicly available on October 13, 2009. The regulation requires mining concession companies to conduct all coal extraction activities themselves within three years. Accordingly, Adaro expects that it will be able to comply with this regulation without any material adverse effect on the Company and its mining operations. However, Adaro is continuing to review the regulation and potential consequences, which have not been fully determined at this time.
In February 2010, the Government has issued newly implementing regulations in regards to the new mining law, and in our view, it will not materially impact on our operations.
In 2008, the Ministry of Energy and Mineral Resources requested that Indonesian coal producers renegotiate existing term coal supply contracts to match then current market prices. Those Indonesian coal producers were instructed that they would be required to suspend shipments if they failed to comply with the request.
Most of Adaro’s customers agreed to renegotiate the pricing terms in line with the Ministry of Energy and Mineral Resources requirement.