UPTE Workflow


: Truck Street
: Stockpile
: Bucket Wheel Excavator
: Train Loading Station
BWE
: Bucket Wheel Excavator
SH/TR
: Shovel & Truck
SWKL
: Swa-kelola
TLS
: Train Loading Station

Production

Amid rising demand for medium-calorie coal, Company increased the growth rate of coal production consistently in the last five years. The increased is in line with the increase in railway transport capacity. The increased railway transport capacity and the increased the Company's coal production is part of a clause coal transportation agreement with PT KAI. In addition to the commitment to become energy companies, this agreement also encourages the Company to continue to increase production to achieve the target by applying an integrated production strategy, which focuses on aspects of efficiency, quality of production, as well as maintaining the availability of coal at optimal levels without prejudice to the application principles aspects of Health, Safety and Environment (K3L).

Description

2016 (ton)

2015 (ton)

Deviation

Increase/Decrease (%)

Tanjung Enim Mining Unit (UPTE)        
Tambang Air Laya (TAL) 9.805.949 10.711.030 (905.081) 8,45
Muara Tiga Besar 2.883.226 2.179.231 703.995 32,30
Banko Barat & Tengah 6.089.692 5.685.129 404.563 7,12
Total Production of UPTE 18.778.867 18.575.389 203.478 1,10
Ombilin Mining Unit (UPO) 997 21.119 (20.122) (95,28)
PT Internasional Prima Coal (IPC) 844.025 686.443 157.582 22,96
Total Production 19.623.889 19.282.951 340.938 1,77

TRANSPORTATION

The Company is in cooperation with PT Kereta Api Indonesia (PT KAI) in the process of delivering coal from Tanjung Enim to Tarahan Port (Lampung) and Kertapati Jetty (Palembang). The process of coal delivery includes:

  1. The arrangement of the amount and quality of coal cargo loaded into each train carriages through the Train Loading Station (TLS).
  2. The supervision and documentation of coal distribution to the Port or Jetty.
  3. The loading and unloading coal from train carriages using the Rotary Car Dumper (RCD) in Tarahan Port and Apron Feeder (AF) at Kertapati Jetty.

In line with the increasing coal production, in 2016 the total volume of coal transportation by train to Tarahan Port and Kertapati Jetty also increased from 15.79 million tons in 2015 to 17.7 million tons in 2016, an increase by 12.2% , with details as in the following table :

Description

2016 (ton)

2015 (ton)

Deviation

Increase/Decrease (%)

Tanjung Enim - Tarahan 14.706.099 13.497.100 1.208.999 8,96
Tanjung Enim -Kertapati 3.014.728 2.294.530 720.198 31,39
Total of Coal Transported 17.720.827 15.791.630 1.929.197 12,22

The Company and PT KAI have made a commitment through a long-term coal transportation rates contract applicable up to 2016 as a follow-up of Coal Transportation Agreement (CTA) in 2009 and signed in 2011. The increase in coal transport volume in 2016 was also attributable to the improved transportation management system and intensive coordination between the Company and PT KAI.

The Company involved directly to support coal freight capacity improvement by rail-loop repair and routine maintenance in loading and unloading facilities owned by the Company.

Sales

In 2016, the increasing trend of Company’s coal sales still continues. Company's coal sales in 2016 increased by 9% compared to the previous year, namely from 19.10 million tons in 2015 to 20.75 million tonnes in 2016. The increase in sales volume came from domestic sales volume increase of 22% from 10.05 million tons in 2015 to 12.27 million tons in 2016, or 103.25% of the target of 12.30 million tons. Most of the Company’s domestic sales is aimed to meet the Domestic Market Obligation (DMO), through long-term contracts to supply the electric steam powerplants (PLTU) which are PLTU Suralaya, PLTU Bukit Asam, PLTU Tarahan and accelerating steam PLTU of 10,000 MW. Meanwhile, the export sales in 2016 reached 8,49 million tons, decreased by 6% compared to previous sales by 9,05 million tons. The Company’s export destinations are still focused on Pacific countries such as India, Taiwan, Malaysia, China, Japan, Sri Lanka, Korea, Cambodia, and Vietnam due togeographical considerations in order to reduce distribution costs.

Sales (ton)

Domestic 12.267.467 10.051.853 9.300.547 8.170.818 8.427.779
Export 8.485.700 9.049.368 8.664.003 9.589.337 6.906.994
Total Sales 20.753.167 19.101.221 17.964.550 17.760.155 15.334.773