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Bacha Prasad, Coal Mine Operator – AVP Mines, PT Hardeo Mines delivered this presentation at Kalimantan Coal 2014 in Balikpapan Indonesia. This event brings together 120+ senior executives, and decision makers from government, mining, infrastructure, shipping and supply sectors to discuss new policies and strategies for tackling the current and emerging issues within the burgeoning Kalimantan coal sector. Visit the website to find out more: http://bit.ly/KalimantanCoal2014
Citation preview
Kalimantan Coal 3rd Annual conference
at Balikpapan
PT. Hardeo Mines Update
By,
B. Prasad AVP-Mines, PT. Hardeo Mines
Structure of presentation 1. Overview and history of Hardeo Group
2. Overview of world coal reserve incl. Indonesia
3. Location of our coal concession
4. Introduction of our concession
5. Overview of coal quality at our mine
6. Production Plan of PT. Hardeo Mines for 2014-16
7. Major challenges facing coal mining industry
8. Opportunities in current market
9. Production trends of major PKP2B & BUMN for 2010-13
10. Production trends of Indonesia for 2004-13
11. Coal export and local sale from Indonesia for 2004-13
HARDEO GROUP OF COMPANIES
Sh. Devilal Jaiswal is the founder of Hardeo Group. He has initiated his business journey in the year 1974 & has a very clear perception about the things he envisages to do. His sons Vishal Jaiswal & Vaibhav Jaiswal has brought the dawn of a new era - An era that inherited qualities of high virtues, innovation & inspiration for being the best in the business. Continuing the fervor of innovation & quality, the group sets new bench-marks in the diversified areas of operation. Establishment of Konkan Agro Marine Industries Pvt. Ltd Nagpur Plant in Nov, 1995 is a remarkable benchmark in the Group’s journey towards success. With curiosity to explore & expand Hardeo Group upgraded its footprint in 2002 with start up of Konkan Agro Marine Industries Private Limited Aurangabad plant & thus evolving from one to multiple businesses. Hardeo group has successfully woven over 4 decades of innovation & enterprises. And the urge for innovation is still continues……..
History
Global Coal Reserve
Indonesia Coal reserve_ Region wise
Kalimantan location
Location of our concession
Location of our concession
Location of PT Hardeo Mines
Location of the Mine: 35 Km from Sangatta, the capital of the East Kutai Regency (Kutim), East Kalimantan province,
Indonesia. On the banks of the Sangatta River. 50 km north of the equator on the east coast of Kalimantan Island. 180 km north of the provincial capital Samarinda . 310 km north of the major population centre of Balikpapan.
www.hardeomines.com
PT. Hardeo Mines-Damanka Prima Project
• Highlights of coal project: • Concession area- 4923 Ha Maps_Damanka prima block\Map Block.jpg
• IUP OP- received in May, 2010
• Resource estimtated- 37 Million tons
• Total Number of Known seams-16 Nos
• Seam thickness ranges- 1m to 6m
• Stockpile Capacity- 100,000 metric tonne, beside Jetty
• Jetty availaibilty- Just beside concession, current mining location 7 km from Jetty/stockpile
• Haulroad, Jetty and stockpile is constructed and owned by PT. Hardeo Mines
• Coal quality of seams differ from seam to seam
PT. Hardeo Mines -Coal Quality
• Typical Coal Quality
Parameter Unit Basis Typical
Total Moisture % ARB 22-27
Inherent Moisture % ADB 10--14
Ash Content % ADB 5--8
Volatile Matter % ADB 38-42
Total Sulphur % ADB 0.6-1.8
GCV Kcal/kg ARB 4600-5300
GCV Kcal/kg ADB 5500-6200
HGI 45-55
PT. Hardeo Mines –Production Plan_2014
Month Projected Production (Metric Tonne)
January 25,000
February 25,000
March 40,000
April 40,000
May 40,000
June 50,000
July 50,000
August 50,000
September 50,000
October 50,000
November 50,000
December 50,000
PT. Hardeo Mines –Production Projection_2015
Quarter
Monthly Production (Metric Tonne)
Quarterly Projection (Metric Tonne)
January- March, 2015 100,000 300,000
April-June, 2015 110,000 330,000
July-Sept, 2015 125,000 375,000
October-December, 2015 140,000 420,000
Total 1,425,000
PT. Hardeo Mines –Production Projection_2016
Quarter
Monthly Production (Metric Tonne)
Quarterly Projection (Metric Tonne)
January- March, 2016 250,000 750,000
April-June, 2016 250,000 750,000
July-Sept, 2016 250,000 750,000
October-December, 2016 250,000 750,000
Total 3,000,000
Major Challenges facing the Industry
• Ever falling coal price_..\Falling Coal Price.xlsx
• Frequent changes Government policy – Ownership structure of foreign investment company
operating mine
– ET Batubara
– Restriction on IUPK-OP for coal hauling and sale
– Restriction on issue of RPTKA for technical manpower and shortage of local manpower
• Tough stand of local mining departments in collecting royalty
• No support from Govt. on land acquisition for mining
Falling coal prices • Graphical representation of HBI (Jan 09 to Aug 14)
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$160.00
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HBA ( USD Ton)
Gunung Bayan I 7000 Kcal/kg(GAR)
Prima Coal 6700 Kcal/kg(gar)
Pinang Coal 6150 Kcal/kg (gar)
Indominco IM East 5700 Kcal/kg
Melawan Coal 5400 Kcal/kg
Enviro Coal 5000 Kcal/kg (gar)
Jorong J-1 4400 Kcal/kg (gar)
Eco Coal 4200 Kcal/kg (gar)
Major Challenges facing the industry…
• Infrastructure of coal evacuation is inadequate in many of resource rich regions
– Need PPP(Public Private Partnership)
– Stability in Govt policy on issues related with coal mining
Opportunities in current market
• Opportunity of investing in Coal mine with Pit head coal based power plants. As Indonesia is still deficient with Power and having enough coal reserve over 5.529 Billion tons*
• Opportunity of investors for investing in Indonesia- As the energy price is possibly at bottom of market cycle, acquisition can be at least possible price
• Possibility of added coal requirement in India to feed its ever increasing coal need for Power and other infrastructure needs
• Improving market demand world over
Production trends of major PKP2B& BUMN
during period 2010-13
Production(Metric ton during 2010-13)
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
2010
2011
2012
2013
Overall Production trends of Indonesia for
PKP2B& BUMN during
period 2004-13
Coal Production statistics
Year Production (Ton) Annual Increase in
production Cumulative annual increase
2004 113,162,525
2005 133,690,443
18.1% 18%
2006 163,197,032
22.1% 20%
2007 167,242,774
2.5% 14%
2008 177,018,905
5.8% 12%
2009 197,589,535
11.6% 12%
2010 219,029,654
10.9% 12%
2011 255,729,965
16.8% 12%
2012 231,017,995
-9.7% 9%
2013 249,401,916
8.0% 9%
Indonesian Coal Production(Ton) for 2004-13
-
50.00
100.00
150.00
200.00
250.00
300.00
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Production ( Million Ton)
Production ( Million Ton)
Coal Export & Local Sale
Coal export and local sale
Year Export (ton) Local sale(ton)
2004 82,619,043 25,572,866
2005 96,823,594 34,027,578
2006 113,072,550 31,243,852
2007 127,376,122 38,603,540
2008 133,561,384 40,525,092
2009 156,526,659 41,915,457
2010 173,247,008 46,183,015
2011 192,319,857 57,460,354
2012 175,622,409 49,571,479
2013 187,558,361 53,238,826
Export and local sale(2004-13)
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
20042005
20062007
20082009
20102011
20122013
Local sale(ton)
Export (ton)
Export and local sale(2004-13)
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Export (ton)
Local sale(ton)
Sources of Information
1. www.minerba.esdm.go.id
2. www.hardeomines.com
3. www.worldcoal.org
4. www.coalspot.com