Indonesia – Mining: Coal Mining

November 10, 2007 at 4:32 am Leave a comment


Indonesia is the world’s third largest exporter of steaming coal (after Australia and China). However, it is one of the leading exporters of sub-bituminous coal which represents the bulk of Indonesian coal production. Indonesia’s coal production rose by 11.1% in 2003, to 114.6 Mt, and exports increased by 18.3% to 85.68 Mt. Indonesia has approximately 35 billion tons of coal resources, of which 23 billion tons is proven. Most of Indonesia’s coal reserves are situated in Sumatra in the south. Coal quality varies, with lower grade lignite (59%), sub bituminous (27%) and high grade bituminous and anthracite (14%).

The largest producers were PT Adaro (22.5 Mt), PT Kaltim Prima Coal (16.2 Mt), PT Kideco Jaya Agung (14.1 Mt), PT Arutmin (13.6 Mt), PTBA (10.03 Mt), PT Berau Coal (7.36 Mt) and PT Indominco Mandiri (6.3 Mt). All, apart from PTBA, are first-generation coal contractors. Including the smaller first-generation companies, such as PT Tanito Harum (2.18 Mt) and PT Multi Harapan Utama (1.62 Mt), first-generation coal companies produced collectively 80 Mt or 70% of total Indonesian coal production in 2003.

74% of Indonesia’s coal is produced by privately owned coal companies, with the only state owned company, PT Tambang Bukit Asam producing 10 Mt (9% of total production in 2003) from four producing open cast operations. PT Adaro, PT Arutman, PT Berau and PT Kaltim Prima comprise the bulk of Indonesia’s private coal producers. PT Berau has begun production from a new colliery located near Sambarata in East Kalimantan. PT Berau has measured reserves totaling over 550 Mt from its deposits (of which Sambarata is one) located in the northern part of Eastern Kalimantan.

PT Kaltim Prima Coal was jointly owned by Rio Tinto and BP Amoco is located in northeast Kalimantan. In July 2003 100% of the KPC shares (owned by BP and Rio Tinto), were sold to PT Bumi Resources Tbk. Bumi is a local company owned by Long Haul Holdings Ltd (73.01%), Minarak Labuan Ltd (21.99%), PT Bakri Capital Indonesia (2.17%) and the public (2.88%). In 2003, KPC’s coal output declined by 8.4% to 16.2 Mt (17.57 Mt) owing to a three-week strike by the workforce in September. The cause of the strike was the workers’ demand for a bonus of 15% from the proceeds of the sale of KPC shares to PT Bumi Resources.

Australian copper producer Straits Resources Ltd has a 80% operating interest in the Sebuku opencast coal mine located on Sebuku Island, South Kalimantan. Sebuku produces approximately 1.5 Mt of high volatile bituminous coal each year.

Organisations (14)

Pt Elka Surya Abadi, Bumi Resources, Dewata Coal,Mining,General Contractor & General Tradining, Indonesia Coal, P.T. Adaro Indonesia, PT Adaro, PT Arutmin Indonesia, PT Asminco Bara Utarna, PT Berau Coal, PT BHP Kendilo Coal, PT Bumi Resources Tbk, PT Kaltim Prima Coal, PT Rimba Baru, PT Tambang Batubara Bukit Asam.

Facilities (27)

Batu Hijau, Bintan Island, Cempaka, Cibaliung, Cikidang, FeNi II Nickel smelter, Gag Island, Gebe Nickel Mine, Gee Island, Gosowong, Grasberg, Halmahera, Kaltim Prima, Kelian Equatorial, Minahasa, Mt Muro, Pentangis, Petangis, Pomalaa Nickel Mine, Pongkor.

Participating Organisations

Banpu Public Company Ltd

Bharat Coking Coal Ltd

BHP Billiton Limited

Through its interests in PT BHP Kendilo, BHP Billiton operates several collieries in southern Kalimantan.

PT Arutmin Indonesia

PT Berau Coal

PT Berau operates several collieries in Indonesia, primarily in East Kalimantan.

PT Kaltim Prima Coal

Rio Tinto Plc

Rio Tinto once owned 50% (the remainder with BP Coal) of Kaltim Prima in Indonesia, a major coal producer with operations in East Kalimantan.


Entry filed under: beyond petroleum, bumi resources, coal, coal assets, conspiracy, east kutai, global conspiracy, kalimantan, kaltim, kaltim prima coal, legal, mining boost, resources.

Coal main source of energy for power plants POLEMIK PROSES DIVESTASI SAHAM KPC

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