All projects are designed to further create shareholder value through increased production and improved efficiency

Our Capacity Growth Now and Then

Long term infrastructure development by management from pit to port in progress to ensure Adaro Indonesia can operationally execute production growth plans

Our Current Ongoing Projects

Kelanis to Tutupan Transportation System - Overland Conveyor (OLC)

A key part of Adaro Energy’s plan to improve efficiency by strengthening the coal supply chain and to increase production to 80 million tonnes by the end of 2014 is to build a 68 km transport system, most likely a multi-stage Over Land Conveyor (OLC), with adjacent crushing plant, stacking system and barge loaders and a total capacity of 40 million tonnes per year. The OLC will be owned and operated by Adaro Energy’s wholly-owned subsidiary PT Jasapower Indonesia.

The distance of the first phase of the OLC project will be 37.8km, which covers approximately half the distance of the existing 75km hauling road from Tutupan to Kelanis. The OLC will provide an alternative mode of transportation and is expected to reduce operating costs by US$1-2 per tonne compared to the use of trucking. With a total estimated investment of around US$240 million, this project will be financed entirely by the proceeds of Adaro’s US$800mn 10-year bonds issued in October 2009.

On December 29th, 2009, Adaro selected Sandvik Asia Limited for the design and the Equipment Supply Contract and PT. Tripatra Engineers and Constructors as the Engineering, Procurement and Construction (EPC) contractor for the OLC. It is expected the estimated completion and subsequent commissioning of OLC is in early 2012. The OLC will be powered by Adaro Energy’s own 2x30 megawatt (MW) mine-mouth power plant.

Upon completion of the OLC, Adaro will have two modes of coal transportation to Kelanis with a combined transportation capacity of over 80 million tonnes per year. However, the focus of such a transportation project is that it could reduce operating costs, transportation costs and fuel costs.

This project may be executed in two phases, with the construction of a conveyor, followed by the second stage, which would either be to build an additional conveyor for the remainder of the distance, build a water channel or to use the existing haul road.

PT Makmur Sejahtera Wisesa (MSW) - Mine Mouth Power Plant

To power the OLC, as well as the overall goal of lowering the Groups dependency on oil, Adaro Energy will construct, through MSW, a 2x30 megawatt (MW) mine mouth power plant.

To the end of 2009, Adaro had spent approximately US$30 million on the power plant, all funded out of existing debt and cash holdings.

IBT Fuel Facility Agreement with Shell - Guaranteeing Supplies of Lower Cost Fuell

The IBT Fuel Terminal Project is aimed at ensuring a guaranteed and lower cost fuel supply for Adaro’s operations, while at the same time developing liquid bulk-based traffic for IBT from fuel storage and delivery.

On September 1, 2009, Adaro Energy through its subsidiary, IBT, signed a fuel facilities agreement with PT Shell Indonesia. This agreement includes the construction of the fuel storage terminal at IBT’s facility.

Under the BOOT agreement, Shell is responsible for building a fuel storage terminal with a minimum capacity of sixty thousand (60,000) tonnes over the land owned by IBT in Pulau Laut, South Kalimantan. Upon completion, Shell will own, maintain, and operate the Fuel Storage Facility until it is transferred to IBT in 2022, or earlier if agreed to by both parties. IBT is responsible for constructing other shared facilities within IBT’s Terminal, which will be used by Shell and are required for the loading and unloading of oil products from the Fuel Storage Facility to vessels or barges.

The project consists of two parts: 1) a build-own-operate-transfer agreement between IBT and PT Shell Indonesia on the fuel storage facility and 2) a modification of the existing jetty facility and piping for fuel loading and unloading, to allow for berth tankers with capacities ranging from 2,000 dwt to 48,000 dwt. The IBT fuel terminal would be designed to be able to receive, store and bunker fuel with an estimated throughput of 720,000 kiloliters per year.

The total cost of the project is estimated at around US$40 million. The financing of the fuel storage facility will be borne by Shell, while the financing for the other shared facilities will be borne by IBT.

PT Shell Indonesia selected PT Lloyd Pte Ltd Singapore as its EPC contractor to construct the fuel tanks. IBT selected the Inti-Duta Consortium to modify the jetty at IBT.

By the end of 2009, the construction work on the fuel tank storage facilities had been completed and the electrical work had started. The fuel jetty project was on-going.