USING COAL

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USING COAL PETCOKE
2nd Annual Petcoke Conference
The Indonesian Experience
Presented by Frederick J. Murrell President Adaro
Envirocoal Americas For McCloskeys 2nd Annual
Petcoke Conference
19 20 July 2004 Houston Texas
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2nd Annual Petcoke Conference
A Few Observations

• Indonesian coal has been blended on several
  occasions with petroleum coke.
• Adaros experience has been with cement producers
  and electric power plants.
• Adaro is comfortable that petcoke can be
  successfully blended with high volatile matter,
  low sulfur coal.

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2nd Annual Petcoke Conference
A Few Observations

• Local laws affecting petcoke use.
• Local laws affecting coal use.
• New fuel permit applications.
• Blending restrictions.
• Differences in hardness (HGI) of products.
• Different response to rainfall.

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Indonesian Coal
2nd Annual Petcoke Conference
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Major Mine Locations
2nd Annual Petcoke Conference
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Coal Quality
2nd Annual Petcoke Conference

• The coal industry has focused on the exploration
  and mining of bituminous and sub-bituminous coal
  with the latter having sub-classifications which
  can be defined as
• C Quality 4200-5000 kcal/kg(adb) 30-40
  TM(ar)
• B Quality 5000-5800 kcal/kg(adb) 20-30
  TM(ar)
• A Quality 5800 kcal/kg(adb) -25
  TM(ar)

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Coal Quality of Selected Companies
2nd Annual Petcoke Conference
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Coal Quality
2nd Annual Petcoke Conference
Adaros sub-bituminous grade C Wara and
Warukin deposits contains more than one billion
tonnes of low ash, low sulphur coal
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Company Operations
2nd Annual Petcoke Conference
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Production By Company
2nd Annual Petcoke Conference
Million Mt
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Production By Company
2nd Annual Petcoke Conference
Million Mt
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Production Summary
2nd Annual Petcoke Conference
Million Metric Tonnes
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Infrastructure
2nd Annual Petcoke Conference
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Efficient Ship Loading
2nd Annual Petcoke Conference
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Coal Supply- Overview
2nd Annual Petcoke Conference

• In 2003, Indonesia produced 123 million mt and
  exported just over 90 million mt.
• Second largest exporter of thermal coal.
• Nearly 80 of production is ranked as
  sub-bituminous A and B coals with low ash,
  low sulphur and low nitrogen.
• Some movement to lower rank coals for domestic
  use.

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Coal Supply- Pricing
2nd Annual Petcoke Conference

• Coal prices have increased rapidly during 2004.
• Indonesian coal is generally sold at lower prices
  despite global supply shortages and reputation as
  a reliable supplier.
• Indonesian sub-bituminous coal is used in Asia,
  Europe and the Americas for its environmental and
  economic benefits.

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Domestic Coal In Indonesia
2nd Annual Petcoke Conference

• Domestic consumption grew from 22.3 million mt in
  2000 to 31.4 million mt in 2003 but will not
  increase substantially until after 2006.
• Between 2006 and 2020 an additional 50 million mt
  per year of new coal supply will be required to
  meet a forecasted 15,000 MW of new power
  generating demand that will be required to
  support industrial growth in Java Bali.

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Exports and Domestic Sales
2nd Annual Petcoke Conference
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2nd Annual Petcoke Conference
USING COAL PETCOKE
The Indonesian Experience
Presented by Frederick J. Murrell President Adaro
Envirocoal Americas For McCloskeys 2nd Annual
Petcoke Conference
19 20 July 2004 Houston Texas