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Exploration Activities in 20095

Exploration drilling activities were conducted in 5 areas in 2009 : Wara 1 and Wara 2, Tutupan Pit, North/ Northwest Tutupan and North Paringin.

Exploration drilling in Wara 1 was extended to the north where the coal seams are known to continue. Additional cored holes were also drilled to augment the quality database for Wara 1. In Wara 2, the balance of the drilling program from the previous year was completed and additional cored holes were also drilled for coal samples.

At Tutupan Pit, in-fill drilling was conducted to refine the coal model in the south pit and samples were collected for coal quality analyses while at North and Northwest Tutupan, in-fill drilling was conducted in the new mining area and inclined holes were drilled in the steeply dipping western limb of the North Tutupan anticline.

At North Paringin, the exploration program extending east (down dip) was commenced and will carry over to 2010. The exploration program of 2010 also includes the area of South Paringin.

  

 

Exploration Details
Location  No. of Holes Meters
OH  Cored  Total  OH  Cored  Total 
Wara I  61 27 88 6,338 3,451 9,789
Wara II  23 5 28 1,565 332 1,897
South Tutupan  17 9 26 4,133 2,683 6,816
North Tutupan  120 6 126 25,051 1,379 26,430
North Paringin  22 22 3,502 3,502
Total  243 47 290 40,589 7,845 48,434

 


Division Head Mining and Hauling, Andris Svilans, and
Director of Operations, Chia Ah Hoo, discuss reserves
and resources for mine planning in 2010.
Overburden removal activities at
the Tutupan mine.

During the year, geotechnical drilling was also conducted in Wara 1 and North Tutupan to collect rock samples for strength analyses. The results will be used in the pit wall designs in these new areas.

Geotechnical Details
Location   No. of Holes  Meters
OH  Cored  Total  OH  Cored  Total 
Wara I   - 10 10  - 2,109 2,109
North Tutupan   - 5 5  - 1,165 1,165
Total   - 15 15  - 3,274 3,274

Exploration and geotechnical drilling activities are outsourced to PT Asia Drill Bara Utama and PT Trikarya Intidrill Persada under close supervision and monitoring by Adaro Indonesia’s Geology Department.

During 2009 the total cost of exploration activities was USD2.35 million which is detailed below.

Location  Total (USD)
Wara I  678,225
Wara II  231,589
South Tutupan  181,963
North Tutupan  1,058,692
North Paringin  173,692
Land Compensation  21,400
Total  2,345,561

Andris Pauls Svilans, Division Head - Mining and Hauling
Andris Svilans has been with Adaro’s mining operations since 2004 and has held a number of senior management operational positions since then, currently being Division Head – Mining and Hauling. He has had over 30 years of experience in open cut mining within the mining industry, predominantly in coal but also in iron ore, lead-zinc-silver and gold. He is a graduate of the University of Melbourne with a degree in Mining Engineering.

Robust Industry Prospect
Additional new coal fired power plants of 579 Gigawatts are expected in the next 20 years in Asia, predominantly in China, Vietnam, India and Indonesia. These projects will require additional coal of 1.7 billion tonnes per year.

(Source: Australian Bureau of Agricultural and Resource Economics, Credit Suisse)