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Indonesia Mining 2012 - GBR

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<strong>Mining</strong> IN <strong>Indonesia</strong><br />

Paulus Warsono Broto, president director, Dewata.<br />

perienced. “In 2009, we commenced commercial<br />

production, producing a total of<br />

90,000 mt/y of coal. In 2010 we ramped up<br />

production to approximately 1 million mt/y<br />

of coal. Furthermore, in 2011 we once again<br />

increased production, hitting 2 million mt/y<br />

of coal. For <strong>2012</strong>, Reswara has set a goal of<br />

producing 4.5 million mt/y of coal.”<br />

The past three years have seen the company<br />

skyrocket both in revenues and output.<br />

Nevertheless, Asmar admits that the<br />

biggest challenge facing the company in the<br />

future will be sustaining this growth. According<br />

to Asmar, achieving this goal has<br />

required that the company prepare itself<br />

in advance for the fiscal year by investing<br />

heavily in infrastructure and signing longterm<br />

contracts with customers. “PT Reswara<br />

has successfully secured its market<br />

for <strong>2012</strong>, having already signed contracts<br />

with buyers. Fortunately, we already possess<br />

the necessary infrastructure for rapid<br />

expansion of production. Our port, having a<br />

150,000 mt/y capacity, as well as our 24-<br />

hour mine road connecting our concessions<br />

to the port, allow us to ramp up production<br />

with ease. The capital expenditure for<br />

the development of our infrastructure was<br />

approximately $70 million.” While not yet<br />

able to compete with the scale of the major<br />

players, Asmar hopes to distinguish PT<br />

Reswara through the quality of its product.<br />

“Due to the fact that we have rapidly expanded<br />

production, PT Reswara has begun<br />

to compete with larger-sized companies like<br />

Arutmin. What distinguishes us from our<br />

competitors is our dedication towards ensuring<br />

that our coal is of the highest quality.<br />

We are currently in the process of reducing<br />

the variability of the calorific value, moisture<br />

content, and ash levels of our coal. To<br />

date, we have not encountered any problems<br />

in achieving this goal. This is a result<br />

of our coal’s low sulfur level.”<br />

Standards in this second wave of <strong>Indonesia</strong>n<br />

coal companies are high in all areas.<br />

MHU Coal, producing 2 million mt/y of the<br />

fossil fuel, has emphasized the importance<br />

of having good community relations to the<br />

success of a project. “MHU Coal has been<br />

around for a long time, however, for MHU<br />

Coal to be around for the next 20 years it is<br />

necessary that we set the standard for CSR<br />

in <strong>Indonesia</strong>. We have made an effort to<br />

show our respect to the people of the area<br />

and have forged a great relationship with<br />

the highly-revered Sultan of Kutai. In partnership<br />

with the sultanate, we are engaged<br />

in an effort to preserve the rich cultural<br />

heritage of the area,” said Gatut Adisoma,<br />

president director, MHU Coal.<br />

www.e-mj.com E&MJ • JULY <strong>2012</strong> 55

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