Exploration and Reserves
Estimates of Adaro Energy's coal reserves and resources are prepared independently by Terence Willsteed & Associates (TWA) and in accordance with the Code for Reporting Mineral Resources and Ore Reserves (JORC Code) (2004) of the Australasian Institute of Mining and Metallurgy (AusIMM). This Code sets out the principles and guidelines, which should be followed in the preparation of an expert report concerning mineral resources and reserves.
TWA is an Australian geological and mine engineering consultancy which has been requested by group coal mining subsidiary, PT Adaro Indonesia (Adaro) to provide an Independent Statement of Coal Reserves and Resource as at December 31, 2008, located at the Adaro Coal Operations in Kalimantan to be submitted to the Indonesian Stock Exchange (IDX). Adaro required TWA to assess that sufficient reserves exist to meet the long-term production plans and to confirm the overall resource estimates by Adaro and determine that the mines have geological and structural conditions, which can be operated successfully.
TWA believes all material facts are presented and that our analysis is sufficient to meet the transparency requirements of the Code.
TWA have previously reported on the Adaro operations and coal assets in the Independent Technical Report on the Coal Assets of PT Adaro Indonesia as at the end of 2007 as reported on February 29, 2008 and in the Independent Technical Review of the Coal Assets of New Hope Corporation, July 31, 2003.
Our Coal Reserves and Quality
The table below shows the total resources and reserves owned by the Company through its mining strategic business unit until December 31, 2008, based on the JORC Code:
Borehole
Spacing |
Resources |
Reserves |
| <250m |
>250m <500 |
>500m <1000 |
|
IN-SITU |
Recoverable |
Measured
(Mt) |
Indicated
(Mt) |
Inferred
(Mt) |
TOTAL
(Mt) |
Proven
(Mt) |
Probable
(Mt) |
TOTAL
(Mt) |
TOTAL
(Mt) |
| Location |
|
|
|
|
|
|
|
|
| Tutupan |
695 |
705 |
825 |
2,225 |
459 |
167 |
626 |
588 |
| Wara |
1 292 |
268 |
337 |
897 |
212 |
92 |
304 |
282 |
| Wara 2 |
118 |
134 |
110 |
362 |
- |
- |
- |
- |
| Total |
1,105 |
1,107 |
1,272 |
3,484 |
671 |
259 |
930 |
870 |
Regional Geology
The Adaro coal deposit is located on the northeastern margin of the Barito Basin, a broad cratonic depression up to 250 km wide, of Eocene to Pliocene age in the tertiary period. The basin occupies much of the province of Central Kalimantan and the western part of South Kalimantan. It is bounded to the west by the Sunda Shield and to the east by an upthrust belt of basement rocks which form the Meratus Range.
The Warukin Formation is the principal coal bearing sequence in the Adaro area. It is divided into three sub units with the principal coal horizons occurring in the uppermost sub-unit. |
