JAKARTA (TheInsiderStories) - Indonesia coal producer, PT Adaro Energy Tbk (IDX: ADRO) eyes interest in two coal-fired power plant projects, namely Java 5 and 7 as part of its business expansion. At the same time, the company expects financial closure of Central Java power plant (Batang project) with total investment $4 billion with Japan Bank Incorporated Corp (JBIC) will be settled by the end of 2015.
President Director of Adaro Energy Garibaldi Thohir said, Batang project, the unit of private equity fund PT Saratoga Investama Sedaya (IDX: SRTG) plans to invest $800 million to develop those projects. He added Adaro also joined a tender to develop the Sumsel 9 and 10 power plant offered by state-run electricity producer PT Perusahaan Listrik Negara (PLN).
“We are fully committed to involve on power plant projects in this country. If we lose on the tender at least we want become as a coal supplier for the power plants,” he said.
Adaro now owns three power plants, namely a 2×1000 megawatt’s (MW) managed by PT Bhimasena Power Indonesia in Central Java, 2×100 MW power plant managed by PT Tanjung Power Indonesia in South Kalimantan and PT Makmur Sejahera Wisesa in South Kalimantan.
The miner also owns 25% metallurgical coal IndoMet Coal Project in Central Kalimantan, jointly with BHP Biliton; 75% in thermal coal PT Mustika Indah Permai in South Sumatera; 10.22% in Bhakti Energi Persada at East Kalimantan with an option to own 90%; 75% shares of PT Balangan Coal in South Kalimantan and PT Bukit Enim Energi in South Sumatera.
Adaro has invested around $744 million in recent years to increasing its presence in Balangan Coal and establishing three other coal mining Mustika Indah Permai, Bukit Enim Energi, Bhakti Energi Persada, IndoMet Coal Project, the construction of 2x30MW mine-mouth coal-fired power plant at Tanjung in South Kalimantan plus developing plans for two major national power generation projects in Central Java and in South Kalimantan.
In medium-term Adaro aim to raise coal production to 80 million tons of coal a year from now around 55 million tons of coal per annum. This strategic vision is supported by a series of infrastructure upgrades at Adaro Indonesia’s South Kalimantan coal supply chain and a series of expansion projects through acquisition and diversifying into power supply.
The two major projects, namely the 10 kilometers conveyor development at South Kalimantan mine and an expansion of Kelanis barge-loading terminal on the Barito river, will raise its capacity from 55 million to 70 million tons of coal per year. The projects are underway and are being carried out in stages with improvements planned through to 2016.
Adaro is targeting to sell up to 57 million tons of coal this year and 25% supply to domestic market. Garibaldi said step-by-step Adaro intends to sell most of coal products in Indonesia.
Adaro is not owned by a single family but by members of five well-respected Indonesian families Edwin Soeryadjaya, Theodore Permadi Rachmat, Garibaldi Thohir, Ir. Subianto and Sandiaga S. Uno. Collectively they own about 65% of Adaro shares with no one having outright control. These five businessmen are variously members of the Board of Directors or Board of Commissioners.
The family bought Adaro in 2005 with approximately $923 million of debt funding and $50 million of equity. In 2008 they listed 35% of the company, or 11 billion shares, on the Indonesia Stock Exchange. The IPO raised Rp12.2 trillion (about $1.3 billion at the time).
Facebook
Twitter
RSS