Our Reserves and Resources
Growing Adaro by Growing Our Coal

our-reserves-resources

Adaro Energy’s strategy is to create maximum value from Indonesian coal. We focus on developing our business in Indonesia. Our strategy is premised on growth — of Indonesia, Southeast Asia, China and India. We believe that as these countries see their electricity demand increase as a result of population and economic growth, the fuel of choice will remain affordable, abundant coal.

We thus have a robust, proactive approach to growing our coal resources (deposits that are potentially feasible to extract) and reserves (the portion of identified resources that can be economically mined with current technology). Our approach entails increasing resources and reserves both at our established mine operations in South Kalimantan and by acquiring and developing new coal properties.

This combination has seen us grow to control up to 12.8 billion tonnes in resources, making us one of a few coal producers in the world capable of providing reliable, long-term coal supply to blue-chip power utilities as they build coal-fired power plants throughout Asia.

Having a long-term supply agreement with these power utilities will allow us to achieve our medium-term production target of 80 million tonnes of coal per year from our current level of around 52 million tonnes per year.

In terms of growth from our current reserve base at Adaro Indonesia’s South Kalimantan concession, our core mining asset, we are looking to continue growing organically through detailed mine planning. As our Tutupan pit matures, our Wara pit is expected to be the major driver of organic growth, with contribution also from the Paringin pit. As at the end of 2015, Adaro Indonesia had 873Mt of reserves and 4.9Bt of resources, reported in accordance with the JORC Code.

Just a few kilometers southeast of Adaro Indonesia’s concession is an IUP from which PT Semesta Centramas (SCM), our second producing mining asset, produces Balangan Coal. Mining began here in 2014, with 1.1 million tonnes produced in 2015. SCM and two adjacent IUPs under development contain an estimated 335 million tonnes of resources, including 186Mt of reserves.

Expanding Beyond South Kalimantan

Enlarging our reserves and resources base by acquiring greenfield coal deposits in Indonesia is essential to our sustainability, and the past six years have seen Adaro successfully undertake a program to increase reserves through diversifying our products, locations and mining licenses.

Our team of experienced geologists is encouraged to explore coal potential in Indonesia, which we then meticulously assess based on asset quality, size and location. We only acquire high-quality deposits with sizeable reserves that we will develop following the same strategy used in Adaro Indonesia: low-cost, low-capex growth, with control over the supply chain and incremental production growth linked to consumer demand.

In all, since 2010 we have invested US$955 million in acquisitions. It is these that have boosted our total estimated resources significantly and mean that we have acted to minimize the risk inherent in depending on a single site by now having a presence established in Indonesia’s four main coal-rich provinces: South Kalimantan, South Sumatra, East Kalimantan and Central Kalimantan.

Preparation for mining at these new properties is under way, and more details on these projects is given in the Investments for the Future section of this site.

Adaro Energy’s Coal Assets
Asset Ownership Acquired Resources Reserves Coal Type License
Adaro Indonesia, South Kalimantan 100% 1982 4.9Bt 873Mt Thermal coal CCA until 2022
IndoMet Coal Project (IMC) JV with BHP Billiton, Central Kalimantan 25% 2010 1.27Bt n/a Coking coal CCoW 30 years after mining starts
Mustika Indah Permai (MIP), South Sumatra 75% 2011 288Mt 254Mt Thermal coal IUP to 2030
Bukit Enim Energi (BEE), South Sumatra 61% 2011 Geological studies pending n/a Thermal coal IUP to 2031
Bhakti Energi Persada (BEP), East Kalimantan 10.22% (option for up to 90%) 2012 7.9Bt n/a Thermal coal IUP to 2031-38
PT Semesta Centramas, PT Paramitha Cipta Sarana and PT Laskar Semesta Alam, South Kalimantan 75% 2013 335Mt 186Mt Thermal coal IUP to 2034
The table above details the resources and reserves measured or estimated at the properties in which Adaro has a stake, followed by an brief overview of resources and exploration activity at these sites. In the box to the right are downloadable PDFs of the latest available statements of quantity and quality for Adaro’s resources and reserves.

Adaro Eksplorasi Indonesia

Adaro’s exploration division, PT Adaro Eksplorasi Indonesia (AEI), is a key component of our operations. In the past, AEI focused its activities solely on the operations of PT Adaro Indonesia at Tabalong in South Kalimantan, but it has expanded its scope following the recent acquisition of sites in South Sumatra and East Kalimantan, and is now engaged in geological and exploration work for AI and other subsidiaries.

In 2015, AEI’s scope was expanded to include looking for coal as fuel for Indonesian domestic power stations. By doing this, AEI is supporting Adaro’s long-term plan to develop its power business into one of the company’s engines of growth.

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.

  • Our Leadership Team

    We have a unique ownership based on five key shareholding families. Get to know our directors and commissioners.

  • Our History

    Adaro has come a long way since first breaking ground. See how it has grown into one of Indonesia’s largest companies.

  • Our Governance

    Adaro insists on world-class governance principles and standards, ensuring the best service for shareholders.

  • Awards for Adaro

    Adaro is consistently recognized for quality in mining, environmental care and as an employer. Read about our successes.

  • FAQs

    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.

  • Glossary

    FGD, demurrage, overburden, GAR, panamax, calorific value: demystify coal’s complex terminology.

  •