Bumi Reseurces TBK

Kaltim Prima Coal www.kpc.co.id

The Company also owns coal-mining operations through PT Kaltim Prima Coal (“KPC”), after it acquired a 100% stake in KPC in October 2003 from British Petroleum (U.K.) and Rio Tinto (U.K. and Australia).



The Company’s acquisition of KPC reflects its vision to become one of the world’s largest coal producers. KPC produced a gross of 28.2 million tonnes of coal in 2005, of which 97% was exported.



As at 30 June 2005 KPC’s estimated in-situ coal resource was 1,830 million tonnes. In addition, proven recoverable reserves were calculated at 525 million tonnes and probable reserves at 76 million tonnes, to give a total of proven and probable reserves of 601 million tonnes.


In 1982, KPC, located at Sangatta, on the east coast of Kalimantan, entered into a Coal Contract of Work (“CCOW”), which is up for renewal in 2021, to explore, produce and market coals from its agreement area of 90,960 hectares.



KPC produces three brands of coal, namely Prima, Pinang and Melawan. Prima is KPC’s leading brand, a high quality bituminous coal with high calorific value, very low ash, moderate sulphur and moisture. It is bright and lustrous with high vitrinate content. Pinang exhibits similar characteristics to Prima but with higher total moisture content. Melawan is a sub-bituminous coal exhibiting low ash and sulphur characteristics, but with a higher moisture content.



At Sangatta, KPC has developed a fully integrated and self-supporting mine with a series of open cut pits and coal preparation facilities. The Sangatta mine is supported by a 10 MW coal-fired power station and is supplemented by five generator sets of 9.4 MW of diesel capacity. The Sangatta processing plant consists of five crushers each with 1,200 tph capacity with additional crushing capacity in 2005 and a 13.2 km overland belt conveyor link to the coast which had been upgraded to a maximum capacity of 4,000 tph in the first quarter of 2005. KPC’s Sangatta coals are shipped to customers through the Tanjung Bara Coal Terminal which is capable of handling vessels up to 220,000 DWT. The coal terminal stockpile has a total capacity of 1,000,000 tonnes.



In 2005 KPC began to mine the Bengalon area (approximately 35 km north of the Sangatta field). From the Bengalon mine, coals are transported over 17 km to the port where they are loaded on board customer’s ship offshore. The mining contractor that has been chosen by KPC to develop and mine Bengalon with an initial ten year contract, is PT Darma Henwa.