Coal Mining Industry - Multi-Client Studies

Outline of The Report

Indonesian Coal Mining Industry

Challenges and Prospects

June 2008

LIST of CONTENTS

FOREWORD

EXECUTIVE SUMMARY

GLOSSARY

1. CURRENT ISSUES

1.1. Coal as main sources of energy

1.2. Indonesia the world’s largest supplier of coal

1.3. Policy of coal export quota effective until 2025

1.4. China and India eyeing Indonesia’s coal production and mines

1.5. Domestic consumption to rise after the completion of 10,000 MW coal–fired power plants in 2010

1.6. Mineral and Coal Bill to replace Law no.11/1967

2. OVERVIEW OF COAL MINING INDUSTRY

2.1. Backgrounds

2.2. Coal prices still follow trend of crude oil prices

2.3. Coal production to meet world’s demand

2.4. Coal consumption continuing on the increase

2.5. Power generating plants remaining the largest user

3. COAL RESOURCES AND RESERVES

3.1. Coal resources

3.2. Indonesia’s coal resources

3.3. Quality specifications of coal

3.4. World’s coal reserves

3.5 . Indonesia’s coal reserves

3.6. Coal resources and reserves distribution in Indonesia

3.7. Kalimantan and Sumatra are the largest centers for coal reserves in Indonesia

4. POLICY AND REGULATIONS

4.1. Indonesia’s energy mix policy

4.2. Amendment to Law No. 11/1967 with draft Law on Mineral and Coal Triggering Controversies

4.3. Government divides CBM working areas

4.4. Process of foreign investment approvals and procedure of cooperation contracts in non oil/gas mining sector

5. OPERATIONAL RULES IN COAL MINING

OPERATION

5.1. Background

5.2. Kuasa pertambangan (KP) or Mining

Authorization (MA)

5.3. First generation coal cooperation contract (CCC) 1981-1992

5.4. Second generation coal cooperation contract (CCC) 1993-1996

5.5. Third generation CCC later known as coal contract of work (CCOW) – Since 1996

5.6. Development of CCOW contractors up to 2005

5.7. Application process to get mining license

5.8. Operational legalities

5.9. Work stages to be completed in coal mining operation

5.10. Financial obligation and taxes

6. COAL MINING OPERATION AND

PRODUCTION

6.1. Coal mining methods in Indonesia

6.2. Coal mining operations

6.3. Indonesia’s coal production

6.3. Indonesia’s coal production by companies

7. PROFILES OF MAJOR COAL MINING

COMPANIES

7.1. PT Tambang Batubara Bukit Asam (PTBA)

7.1.1. Background

7.1.2. Coal deposit and quality

7.1.3. Production, domestic sales and export

7.1.4. Development program

7.2. PT Kaltim Prima Coal (KPC)

7.2.1. Background

7.2.2. The geology and coal deposit

7.2.3. Mining operations and coal quality

7.2.4. Infrastructure

7.2.5. Coal processing and preparation

7.2.6. Coal transportation and terminal

7.2.7. Production and marketing

7.3. PT Adaro Indonesia

7.3.1. Background

7.3.2. The geology

7.3.3. Resources

7.3.4. Coal quality

7.3.5. Mining operation

7.3.6. Loading facilities

7.3.7. Barging and transshipment

7.3.8. Production, domestic sales and exports

7.4. PT Kideco Jaya Agung

7.4.1. Background

7.4.2. Mining operation and coal deposit

7.4.3. Coal quality and specification

7.4.4. Inland transportation from the mines to Tanah

Merah Coal Terminal

7.4.5. Production and marketing

7.5. PT Arutmin Indonesia

7.5.1. Background

7.5.2. Senakih mines

7.5.3. Satui mines

7.5.4. Coal terminal

7.5.5. Transportation, barging and loading

7.3.8. Production, domestic sales and exports

7.6. PT Berau Coal

7.6.1. Background

7.6.2. Concession of coal resources and quality

7.6.3. Lati coal mine

7.6.4. Binungan coal mine

7.6.5. Sambarata coal mine

7.6.6. Coal transportation

7.6.7. Suarat port

7.6.8. Production, domestic sales and exports

7.7. PT Indo Minco Mandiri

7.7.1. Background

7.7.2. Mining operation

7.7.3. Coal quality

7.7.4. Transportation

7.4.5. Production and marketing

8. DOMESTIC DEMAND FOR COAL

8.1. Domestic requirement growing fast

8.2. Domestic coal sale

8.3. Domestic consumption development by various industrial sectors

8.4. Coal requirement of various sectors of industry in Indonesia

9. COAL EXPORTS

9.1. Indonesia’s export quota jolting the world market

9.2. Largest users of Indonesian coal in 2007

9.3. Indonesia’s main coal exporting companies

9.4. Indonesia’s low rank coal remains attractive

10. COAL TRANSPORTATION AND TERMINALS

10.1. Backgrounds

10.2. Overland transport facilities in coal mining

operations

10.3. Sea Transportation Facilities

11. HEAVY EQUIPMENT IN COAL MINING

INDUSTRY

11.1. Backgrounds

11.2. Heavy equipment requirement in Indonesia

11.3. Main users of heavy equipment in coal Industry

11.4. Heavy equipment sale in Indonesia

11.5. Producers and sole agents heavy equipment in

Indonesia

11.6. Marketing aspects of heavy equipment

11.7. Sale Prospects of heavy equipment for mining

activity in Indonesia

11.8. Heavy equipment financing

12. DEVELOPMENT OF 10,000 MW COAL FIRED POWER PLANTS (PLTU) CRASH PROGRAM

12.1. Backgrounds

12.2. Production of Coal Fired Power (PLTU) in

Indonesia

12.3. PLTU coal requirement

12.4. 10,000-MW coal fired power plant (PLTU) crash program

12.5. 10,000 MW PLTU requires coal supply guarantee

12.6. General condition of coal supplier companies for

10,000 MW PLTU project

12.7. PLN coal requirement still to continuing to

increase

13. PROSPECT OF COAL BED METHANE

13.1. Backgrounds

13.2. Government policy and regulation on CBM

13.3. Preparations for development of industry

related to CBM

13.4. Locations of CBM potential areas

APPENDICES

1. Profile of PT Bukit Asam

2. Profiles of coal mining companies