Coal Terminology Demystified
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PT Adaro Energy Tbk.
PT Adaro Indonesia
Impurities consisting of silica, iron, alumina and other incombustible matter that are contained in coal. Ash increases the weight of coal, adds to the cost of handling and can affect the burning characteristics. Ash content is measured as a percent by weight of coal on a dry basis.
Average selling price.
PT Alam Tri Abadi.
The process of refilling a mine opening, or the waste material (e.g. sand, rock, dirt) used for that purpose.
- Backlog of Coal
Uncompleted delivery of coal that can result in demurrage.
- Baltic Dry Index (BDI)
An index reflecting a changes in raw material freight costs on a composite number of routes, issued on a daily basis.
- Barge loader
A facility by which coal barges are loaded.
A flat-bottomed boat used for carrying freight of coal on a river.
- Bituminous coal
A coal which is high in carbonaceous matter, often with well-defined bands of bright and dull material, and having between 15% and 50% volatile matter. It is a middle-rank coal (between sub-bituminous and anthracite) formed by additional pressure and heat on lignite. Its moisture content is usually less than 20%. The heat content of bituminous coal ranges from 5,500 to 7,000kcal/kg.
- Black coal
A general term for coal of either sub-bituminous, bituminous or anthracite rank.
The use of explosive charge to assist in the breaking of hard rock.
Any drill-hole, usually associated with mineral exploration or oil-well drilling.
A block of compressed coal used as fuel; also a slab or block of artificial stone.
- Brown coal
A low-rank coal that is brown or brownish-black, but rarely black. It commonly retains the structures of the original wood. It is high in moisture, low in heat value and breaks up upon drying.
An exploration or development project located within an existing mineral province that can share infrastructure and management with an existing operation.
- Calorific value (CV)
The quantity of energy produced from a unit amount of coal, measured as the heat released on the unitâ€™s complete combustion in air or oxygen. Usually expressed in kilocalorie per kilogram (kcal/kg). Also known as heat value. The value can be based on different states of the coal, commonly gar (gross as received, with moisture left in the coal) or gad (gross air-dried, meaning with all non-inherent moisture removed). The basis nar (net as received) is also used as a more realistic measure of the actual heat value and is calculated by mathematically lowering the gar value to take account of the latent heat of evaporation of moisture in the coal and the moisture created during the combustion of hydrogen in the coal.
- Capesize vessel
A shipping vessel capable of carrying 120,000 tonnes to 180,000 tonnes when fully loaded, named so as it is too large to transit the Panama Canal and thus sails via the Cape of Good Hope to go from the Pacific Ocean to the Atlantic and vice versa.
- Carbon content
The amount of carbon in coal, measured in percent.
- Cash costs
Includes site costs for all mining (excluding deferred development costs), processing and administration, but excludes royalties, production taxes, amortization and rehabilitation, as well as corporate administration, capital and exploration costs.
A readily combustible black or brownish rock whose composition, including inherent moisture, consists of more than 50% by weight and more than 70% by volume of carbonaceous material. It is formed from plant remains that have been compacted, hardened, chemically altered and metamorphosed by heat and pressure over geological time.
- Coal blending
The process of mixing coals of different quality in predetermined and controlled quantities to give a uniform feed or product.
- Coal Contract of Work (CCoW)
The new form of contract between the Government of the Republic of Indonesia and an Indonesian incorporated company for coal mining, also recognized as PKP2B in its Indonesian abbreviation, that replaced the CCA. Under the CCoW, the mining company is, in effect, entitled to 100 percent of the coal production, however, a royalty of 13.5% of sales revenue is paid to the Indonesian Government.
- Coal Cooperation Agreement (CCA)
Previous form of agreement with the Government of the Republic of Indonesia giving rights to a third-party to explore for and mine coal within a defined concession area. Under the CCA, the coal contractor is entitled to an 86.5% share of the coal produced from the area, and the contractor bears all costs of mine exploration, development and production. The Indonesian Government retains entitlement to the remaining 13.5% of production. Adaro has a 30-year CCA for its South Kalimantan concession valid until 2022 and extendable for another 20 years.
- Coal enhancement technology
Removing moisture from coal through the use of heat and pressure to produce an upgraded variety.
- Coal liquefaction
The process of converting coal into a synthetic fuel.
- Coal scrubber
A pollution-control device primarily installed on coal-fired electricity plants that uses limestone to remove sulphur dioxide (SO2) from the emissions stream.
- Coal seams/coal bed
A bed or stratum of coal; generally applied to large deposits of coal.
- Coalbed methane (CBM)
A generic term for the methane originating from coal seams that can be drained from surface boreholes before mining takes place. Also called coal seam methane or coal mine methane.
- Coking coal
Coal that is suitable for making coke, a high-grade solid fuel product containing 80 percent of carbon produced by distillation to remove volatile constituents, used in the production of metallurgical coke and steel. Also called metallurgical coal.
- Cored hole
A borehole put down by a drill that takes a sample of the rock.
- Cost and Freight (C&F)
A method of selling cargo where the seller pays for loading costs and ocean freight.
- Cost, Insurance, Freight (CIF)
A type of sale in which the buyer of the product agrees to pay a unit price that includes the Free On Board (FOB) value of the product at the point of origin, plus all costs of insurance and transportation.
Coaltrade Services International Pte. Ltd.
- Deadweight tonnage (dwt)
A measure of the weight a ship is carrying or can carry, calculated as the sum of the weights of cargo, fuel, fresh water, ballast water, provisions, passengers and crew.
Financial compensation paid by a charterer to the vessel owner for delays after the laytime has expired at the load/discharge port.
Financial reward paid by a ship owner to the charterer if the load/discharge operations are completed in advance of expiry of laytime. Usually paid at half the demurrage rate.
To remove water.
The inclination of a coal seam from the horizontal; dip is always measured downwards at right angles to the strike.
Excavation activity or operation usually carried out at least partly underwater, in shallow seas or fresh water areas with the purpose of gathering up bottom sediments and disposing of them at a different location.
- Drilling rig
A steel structure mounted over a borehole to support the drill pipe and other equipment that is lowered and raised during drilling operations.
- Dry coal
Coal which has no moisture associated with the sample.
A trademarked name for Adaro Energy coal that is environmentally friendly, with a low sulphur content of 0.1%, ash content between 1-2% and a nitrogen level of 0.9%. Because of the ultra-low levels of these pollutants, Envirocoal can be burned in power stations without any emission control equipment and still meet stringent international emission standards.
Engineering, Procurement and Construction.
- Excavator/shovel/wheel loader
Equipment used for loading soil or coal onto the hauling equipment.
The process of economic recovery or removal of the developed mineral body.
The search for mineral deposits and the work done to prove or establish the extent of a mineral deposit.
- Floating crane
A specialized vessel for lifting heavy loads. The floating crane transships coal from barges on to ships, which then transport it to power stations or other customers.
- Floating Loading Facility (FLF)
Also known as a floating transshipper. It uses two cranes and a conveyor system to achieve a high loading rate.
- Flue gas desulphurization
Technology used to remove sulphur dioxide (SO2) from the exhaust flue gases in fossil-fuel power plants.
A large body of rock characterized by homogeneity of its composition and texture.
- Free on Board (FOB)
The price paid for coal at the mining operation site. It excludes freight or shipping and insurance costs.
Gross air-dried. See calorific value.
Gross as received. See calorific value.
- Geared vessel
A ship with on-board cranes.
A ship without means on board for the loading/unloading of cargo.
The science that deals with the Earthâ€™s physical structure and substance, its history, and the processes that act on it.
The branch of civil engineering concerned with the study and modification of soil and rocks.
- Geothermal energy
Energy from hot water or steam from deep beneath the Earthâ€™s surface being channelled to power turbines and generate electricity.
A global marketplace facilitator for trading coal and coal related services, information and instruments. GlobalCOAL defined a range of standardized coal quality specifications that was embedded in its Standard Coal Trading Agreement. It developed an online trading platform that enables market participants to trade standardized coal contracts. It also created a methodology for coal price index calculation, which led to the establishment of the NEWC Index as the leading benchmark for coal price in Asia-Pacific.
A mechanical device for clutching, lifting and moving things, especially materials in bulk.
Development or exploration located outside the area of influence of existing mine operations/infrastructure.
Inexact term, but normally taken to mean a vessel of about 40,000-60,000 dwt.
Inexact term, but normally taken to mean a vessel of about 10,000-40,000 dwt.
The carrying of supplies, coal
and waste in trucks.
PT Harapan Bahtera Internusa.
- Heat value
See calorific value.
The branch of science concerned with the properties of the Earth’s water, especially its movement in relation to land.
PT Indonesia Bulk Terminal.
International Finance Corporation.
- In-Pit Crusher-Conveyor (IPCC) system
A crushing system and belt conveyor that transports coal or other materials directly from the mining operations area to a stockpile or dumping area.
Total reserves of coal in a seam. Term used by geologists for coal that exists but is not necessarily mineable.
- Indicated coal resources
Part of coal deposit for which quality and quantity can be estimated with a reasonable level of confidence, as defined in the JORC Code. Indicated Resources have a lower level of geological confidence than that applied to Measured Resources.
- Inferred coal resources
That part of a mineral resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
A landing stage or small pier where boats can dock or be moored.
- JORC Code
Widely accepted standard for reporting mineral resources and ore reserves established by the Australasian Joint Ore Reserves Committee. This code sets out the principles and guidelines which should be followed in the preparation of an expert report concerning mineral Resources and Reserves.
PT Jasapower Indonesia.
Japanese Power Utilities.
The agreed upon amount of time in a voyage charter for the loading and unloading of cargo.
A brownish-black low-rank coal with a relatively high moisture content and relatively low heat/energy content.
A machine for loading coal and rock
- Lost-time injury (LTI)
A work injury disease where the injured party has at least one complete day or shift off work.
- Lost-Time Injury Frequency Rate (LTIFR)
The number of lost time injuries multiplied by one million divided by the number of man hours worked in the reporting period.
- Low-rank coal
Coal that contains 70%-80% carbon, with high moisture content (above 35%) and low calorific value (less than 5,100 kcal/kg adb).
PT Maritime Barito Perkasa.
- Measured coal resources
Part of the coal deposit for which quality and quantity can be estimated with a high level of confidence, as defined in the JORC Code.
- Metallurgical Coal
Coking coal and pulverized coal consumed in making steel.
- Methane (CH4)
A gaseous compound of carbon and hydrogen naturally emitted from coal that can be explosive when mixed with air or oxygen between certain limits. It is the most common gas found in coal mines.
- Metric ton
Standard unit of mass for measuring coal production, equal to 1,000 kilograms (2,204.6 pounds). Expressed as “tonne”
- Mine drainage
Refers to drainage from sources related to mining.
- Mine-mouth power plant
A coal-burning power-generation plant built near a coal mine.
- Moisture content
The quantity of moisture in coal or other minerals.
PT Makmur Sejahtera Wisesa.
Net as received. See calorific value.
- Newcastle Coal Price
The spot price of coal at the eastern Australian port of Newcastle, a regional benchmark price.
- Nitrogen Oxides (NOx)
Formed when nitrogen (N2) combines with oxygen (O2) in the burning of fossil fuels from the natural degradation of vegetation and from the use of chemical fertilizers.
Orchard Maritime Logistics Pte Ltd.
- Open hole
A borehole free of any obstructing object or material and from which no core is taken.
- Open-cut/open-pit mining
Surface mining technique designed to extract minerals that lie near the surface in which the working area is kept open to the sky. Waste, or overburden, is first removed, and the mineral is broken and loaded, as in a stone quarry.
- Out-of-Pit Crusher and Conveyor (OPCC)
A belt conveyor and crushing system that transports coal or overburden from the edge of a mine to a stockpile or overburden dumping area outside the mine.
Any material (including layers of dirt and rock) that overlies a deposit of coal. Overburden is removed prior to surface mining and replaced after the coal is taken from the seam.
- Overburden ratio
The amount of overburden that must be removed to excavate a given quantity of coal.
- Panamax vessel
Shipping vessel capable of carrying between 50,000 and 80,000 tonnes when fully loaded (the maximum size of a vessel that can transit the Panama Canal, which has a technical restriction on vessels with a beam of more than 32.2 meters).
Peat is a dark brown or black deposit formed in marshes and swamps from the dead and partly decomposed remains of the marsh vegetation. It is one of the earliest stages of coal formation.
Any mine, quarry or excavation area worked by the open-cut method to obtain material of value.
- Probable reserves
Similar to proved reserves but with a lower level of confidence, as the number of intersections of the coal seams by pits, trenches and boreholes in the sampling is less than that conducted in arriving at the proved reserves (as defined in the JORC Code).
- Proved reserves
As indicated by the JORC Code, it is the economically mineable part of an measured, mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.
An open pit from which stones, rocks and other materials are excavated.
The restoration of land and environmental values to a surface mine site after the coal is extracted. Reclamation operations are usually underway as soon as the coal has been removed from a mine site. The process includes restoring the land to its approximate original appearance by restoring topsoil and planting native grasses and ground covers.
- Recoverable reserves
An estimate of how much coal can be recovered (mined) from the accessible reserves of the demonstrated reserve base.
The portion of an identified coal resource that can be economically mined with the current technology at the time of determination. Reserves can be divided into proved and probable reserves.
Natural concentrations or deposits of coal in the Earthâ€™s crust, in such forms and amounts that economic extraction is potentially feasible.
- Richards Bay Coal Terminal (RCBT)
A large export coal terminal located in South Africa, with a design capacity of 96 million tonnes per year. Richards Bay coal price refers to the FOB price of coal from South Africa loaded at Richards Bay.
The payment of a certain stipulated sum on the mineral produced to the government/mineral owner under the mineral lease.
- Run of Mine (ROM)
Usually the typical quality of coal that is extracted prior to any act of benefication such as washing, crushing or screening. The term is used loosely and can be applied on a pit by pit basis and is typically also used to refer to the raw stockpile areas, or the ROM area.
Air pollution control devices used to remove particulate and/or gaseous pollutants from exhaust streams.
PT Sarana Daya Mandiri.
- Seaborne coal
Coal that is marketed outside the mining area and is transported by sea to the customer.
Layer or bed (of coal).
- Self-propelled barge
Powered waterway vessel that can be used to carry heavy bulk items such as coal.
- Semi-soft coal
A type of coking coal that can be blended with a hard coking coal to produce an acceptable hard coke.
A fine-grained sediment having a particle size intermediate between that of fine sand and clay.
PT Saptaindra Sejati.
- Soft coking coal
Coal that makes soft or weak coke when coked alone in a coke oven.
- Steaming coal
Coal used to burn for steam-raising as part of the electricity generation or industrial process.
The branch of geology concerned with the order and relative position of strata and their relationship to the geological time scale. It is also the analysis of the order and position of layers of archaeological remains.
A layer/series of layers of rock in the ground.
Removal of vegetation, topsoil and overburden.
- Stripping costs
Costs associated with the removal of vegetation, topsoil and overburden.
- Stripping ratio
The amount of vegetation, topsoil and overburden that must be removed to gain access to a unit amount of coal.
- Sub-bituminous coal
A black coal that ranks between lignite and bituminous coal with 20% to 40% of inherent moisture by weight, and heat content ranging between 4,000 and 5,500kcal/kg.
One of the elements present in varying quantities in coal that contributes to environmental degradation when coal is burned. The US Energy Information Administration (EIA) classifies coal in terms of pounds of sulphur per million Btu as low (less than or equal to 0.60 pounds of sulphur), medium (between 0.61 and 1.67 pounds of sulphur) and high (greater than or equal to 1.68 pounds of sulphur). When coal is sampled, sulphur content is measured as a percent by weight of coal on an â€œas receivedâ€ or â€œdryâ€ (moisture-free) basis.
- Supercritical Power Plant
A supercritical power plant is a thermal electricity generating station that uses steam at extremely high temperature and pressure to generate electricity with improved efficiency. Above the â€œcriticalâ€ point of water â€” 374Â°C and 22,064 megapascals (MPa) â€” it exists as superheated steam, which can be used to drive the turbines of a generator more efficiently than steam at a lower subcritical temperature.
- Surface mine
A mine in which the coal lies near the surface and can be extracted by removing the covering layers of rock and soil.
- Thermal coal
Coal that is used for the generation of heat for steam raising in power stations and other general industry applications. These coals generally do not exhibit any coking properties and therefore would not make coke in a conventional coke oven.
A metric ton, the standard unit of mass for measuring coal production, equal to 1,000 kilograms (2,204.6 pounds).
Relating to the arrangement or accurate representation of the physical features of an area.
Transfer of coal from one ship to another.
- Value Added Tax (VAT)
Tax levied on the difference between a commodityâ€™s price before taxes and its cost of production.
- Volatile Matter
Those products given off by a material as gas or vapor (excluding moisture). It is the percentage of coal lost as volatile matter (gases) when coal is incinerated using standard conditions.
Read More About Adaro
- Adaro at a Glance
Exploring for coal; mining and selling it; generating power from it. Understand our business in seconds.
- Our Vision
Adaro strives to deliver positive energy from Indonesian coal. See how our strategy helps us do that.
- Our Cleaner Coal Products
Our core product, Envirocoal, is the world’s cleanest solid fossil fuel. Find out what makes it remarkable.
- Our Reserves and Resources
We control or have options on 12 billion tonnes of coal in Indonesia. See where it is and how we plan to mine it.
- Our Market and Customers
We sell our coal to power providers and cement manufacturers in Indonesia and worldwide. Find out who and where.
- Our Corporate Structure
We own or have stakes in 21 vertically integrated subsidiaries. Find out how they operate and fit together.
We have a unique ownership based on five key shareholding families. Get to know our directors and commissioners.
Adaro has come a long way since first breaking ground. See how it has grown into one of Indonesia’s largest companies.
Adaro insists on world-class governance principles and standards, ensuring the best service for shareholders.
Adaro is consistently recognized for quality in mining, environmental care and as an employer. Read about our successes.
How do we find our coal? What CSR do we do? What is it like to work at Adaro? Find answers to these and more.
FGD, demurrage, overburden, GAR, panamax, calorific value: demystify coal’s complex terminology.