Development Potential

of the
Wara Coal Deposit
to meet
Indonesias Future Power
Requirements

COAL RESOURCE

Indonesia has large resources of lower heating value subbituminous coal

the resources are largely in South and East Kalimantan and

South Sumatera

the resource base is many billions of tonnes

these resources have not been developed to date because

production growth from existing deposits has been sufficient
to meet domestic and export demand

COAL RESOURCES

the coal resources in South and East Kalimantan are:

close to the surface
suitable for low cost open pit mining
close to the sea

or
close to rivers that give deep water access to the sea

the Kalimantan coal resources in some locations are:

low in ash
low in sulphur
give low NOx emissions
have suitable trace element content

however some of the coals are:

relatively high in moisture
relatively low in heat value
relatively soft which will mean handling considerations

COAL RESOURCES

a number of the deposits of the lower heating sub-bituminous coal

are in areas currently being mined

have had some exploration and development work

are close to existing mine infrastructure

in some cases the mines are already opened

could be developed or expanded quickly with first or increased

production in a matter of months

need long term markets to justify full development

WARA COAL DEPOSIT

once such lower heating value subbituminous coal resource is the

Wara deposit in PT Adaro
Indonesias
Coal
Cooperation
Agreement
area
in
South
Kalimantan

the Wara resource base is

estimated at over 1 billion tonnes
of surface minable coal with a low
strip ratio

the Wara deposit lies 5 kilometers

west of Adaros existing mining
operations at Tutupan

the Wara area is already connected

to the road infrastructure of the
Tutupan operations

the coal resources of Wara are the

second largest in Adaros area
after the Tutupan resources
5

PT ADARO INDONESIA

Adaro's Production Since 1992

Adaro commenced mining in its

resource area in 1991

40
35

25
20
15
10
5

the area contains sub-bituminous

coal resources in exceess of 3 billion
tonnes in three deposits known as
Paringin, Tutupan and Wara

all the coal in these deposits is

typified by medium to low calorific
value, medium to high moisture and
low sulphur and ash

20
06

20
04

20
02

20
00

19
98

19
96

0
19
94

its production has climbed steadily

from less than 1 million tonnes in its
first year of production to a planned
34 million tonnes this year

19
92

Million Tonnes

30

PT ADARO INDONESIA

the Adaro deposits are characterized by

thick seams of surface mineable coal
with low stripping ratios and favourable
mining conditions

the development of the coal resource

was based on the construction of a 75
km coal haul road from the deposits to
a crushing, stockpiling and barge
loading site built at Kelanis on the
Barito river

the Barito river provides deep water

access to the sea

at Kelanis, coal is loaded on to barges

for transport either direct to domestic
customers or for transshipment into
bulk carriers

PT ADARO INDONESIA

Adaro is a major exporter with sales

to 17 countries in Asia, Europe and
North America

Adaro is the largest supplier to the

domestic market with approximately
35% of its output being supplied to
PLN and private power producers,
the cement industry and general
industries such as paper and pulp

a 36 million tonnes per year output

from Tutupan, which will be
achieved in 2007, is considered
optimum for this deposit

any additional production output

above this level will come from the
Wara deposit

WARA COAL DEPOSIT

the Wara deposit has been drilled and a large resource base has been
delineated

mining operations were carried out in 1995 and 1996 as a European

customer was using a blend of Wara and Tutupan coal in a power
station that had been previously using high sulphur lignite

the Wara blend, with its ultra low sulphur and ash, was used to allow
the station to keep generating and meet EU emission standards
without installation of flue gas desulphurisation equipment

however it was found that the station could accept the Tutupan coal
which was already under large scale mining and the mining at Wara
was subsequently stopped

since then there has been no mining at Wara as Adaro has sufficient
reserves in its Tutupan deposit to meet its current domestic and
export markets

WARA COAL GEOLOGY

exploration work carried out at Wara includes geological and coal outcrop
mapping, trenching, drilling, geophysical downhole logging and coal
sampling and analysis
A geotechnical analysis and aerial photogrammetric topographic mapping
has also been undertaken
exploration work identified two separate deposits, named Wara 1 and Wara
2, each with multiple seams
the Wara 1 deposit has three major coal seams with some splits in the
seams

10

WARA COAL GEOLOGY

the Wara 1 coal strikes in a general north-east / south-west direction, and

the coal seams dip to the south east at approximately 45 degrees
the average coal thickness for the seams is 12 meters, with a range of
between 4 to 30 meters
the Wara 2 deposit, northwest of Wara 1 deposit, does not outcrop and
was discovered by drilling
the Wara 2 coal appears to be shallow, flat lying and may be of a higher
moisture than Wara 1
only limited work has been done on Wara 2

Map of the cross

sections

11

WARA COAL QUALITY

a total of 25 quality holes have

been
drilled
in
Wara
1,
intersecting the three major
seams

the total moisture of the Wara 1

coal is relatively high and varies
from 39% to 41%

Inherent moisture is 26% to 31%.

Run of mine moisture percentage
will depend on the mining method
and coal handling

TYPICAL SPECIFICATIONS
Proximate Analysis
%

Total Moisture (a.r)

Inh Moisture (a.d.b.)
Ash (a.d.b.)
Volatile Matter (a.d.b.)
Fixed Carbon (a.d.b.)
Calorific Value (a.d.b.)
Calorific Value (g.a.r.)
Total Sulphur (a.a)
H.G.I.

Ultimate Analysis
%

(Dry Ash Free Basis)

Hydrogen

ash is low at 2% and sulphur is

low at 0.15%
the average calorific value of Wara
1 is 4,850 kcal/kg (adb basis)
the coal quality of the Wara 2
deposit has not been defined. The
ash and sulphur contents appear
to be similar to Wara 1
12

Carbon

40
27
2
37
34
4850
4000
0.15
60

69
5

Nitrogen

1.4

Oxygen

23

Sulphur

0.1

Ash Fusion

(Reducing Atmosphere)

Temperature
o
C

Initial Deformation

1300

Spherical

1370

Hemispherical

1450

Flow

1490

WARA COAL RESOURCES

the Wara coal deposit is classified in the measured, indicated or inferred

resource categories
the total insitu coal resources have been calculated at 1,086 million tonnes
of which 850 million tonnes is in the Wara 1 deposit

WARA I & II RESOURCES

Deposit

Resources
Measured

Indicated

Inferred

Total

Wara I

254

280

316

850

Wara II

59

73

104

236

Total

313

353

420

1086

( million mt )

13

WARA COAL COMBUSTION TESTING

a 5 tonne sample of Wara 1 coal

was tested at the Energy
Technology
Laboratory
(UPTLSDE, BPPT) Puspiptek, Serpong,
Tangerang

the report, including all the results

of the tests, showed the suitability
of the use of the coal in existing
power plants in Indonesia

the results were similar to that

obtained from the combustion
testing of Adaros Tutupan coal, a
coal now widely used in power
plants around the world

14

WARA MINING and TRANSPORT

the mining method will be by

conventional truck and shovel
mining similar to Adaros current
operation

this system best suits the proposed

multi bench pit layout, and gives
maximum scheduling flexibility

equipment size will be as large as

possible to lower the unit production
cost. However the philosophy of
larger size equipment will be
balanced with what equipment size
can be maintained under Kalimantan
conditions

at the Barito river a new coal

crushing, stockpiling and barge
loading facility would be constructed
at Kelanis beside the one currently
in use

15

WARA HANDLING AND SHIPPING

the Kelanis system would receive the

coal delivered by haul trucks.
After
crushing, the system would convey the
coal to a stockpile area or convey
directly to barges

the facility at Kelanis for Wara coal

would have a planned capacity of 20
million tonnes per year and would take
9 to 12 months to design and construct

before that time up to 2 million tonnes a

year of Wara coal could go through the
current system

transportation from Kelanis to power

plants on Java would be by direct
barging in barges up to 14,000 tonne
capacity

this transport method is commonly

used in domestic supply of coal and is
well able to expand to meet increased
demand

16

MARKETING STRATEGY

the first stage will be to identify the

markets for the Wara coal
the best markets would be new
power plants designed for the coal
quality with:
facilities of a size to handle
the tonnage
mills of a suitable type
(beater mills?)
large fan capacity
boilers designed for such coal

markets could be in:

Indonesia new power plants
China coastal power plants
India planned new power
plants
South-East Asia

17

MARKETING STRATEGY

the optimum market for the Wara coal is

the one with the shortest transport
distance given the low heat value of the
coal
optimum markets in order of priority are:

on-site power plants

new power plants in Kalimantan
new power plants in Indonesia

target markets are the 10,000 MW of new

power plants to be built under the
Indonesian Government program of
which 5,000 MW will be on Java
the Java plants will require 20 million
tonnes a year:

Adaro can deliver in barges up to 14,000

tonnes direct from barge
loading at Kelanis
4 to 5 days delivery time
can provide competitive delivered price
per unit of heat value

18

MARKETING PROGRAM

the marketing program will be to

provide Wara coal information to
possible power plant developers

provide trial samples as needed

from 5 kg up to 500 tonnes from
the present trial mine

make test burn results available

have Adaros coal combustion

consultant available to provide
technical advice

arrange
inspection
visits
to
operating power plants using
similar coals

19

GOVERNMENT POLICIES

adjustments to some Government policies would assist in the

development of the large energy resource of lower heat value subbituminous coals in Indonesia

Government promotion of the use of this type of coal in new

power plants would bring it to the planned developers
consideration

reduction of the royalty in Coal Cooperation Agreements and Coal

Contracts of Work from the current 13.5% would allow more of
this type of coal to become economically viable

new power plants require long term coal supply contracts if the
plant is built to use particular types of coal. Many of the current
Coal Cooperation Agreements come up for renewal from 2020.
Early renewal of these Agreements would promote long term
planning and development of this national energy resource

20

WARA COAL CONCLUSIONS

the Wara deposit is a large resource of lower heat value subbituminous coal in South Kalimantan

part of the deposit has been drilled and the coal quality and the
resource base defined

the coal resource outlined to date is over 1 billion tonnes

the coal is close to the surface and amendable to low cost open
pit mining. It is also close to a large scale mining operation with
which it can share infrastructure

a new mining operation at Wara would only require construction

of a crushing, stockpiling and barge loading system at Kelanis on
the Barito river, a project that could be completed in less than a
year

21

WARA COAL CONCLUSIONS

coal combustion testing has established that the Wara coal will
perform similar to other sub-bituminous coals of its type in
commercial power plants

the Wara deposit has not been developed to date because

production growth from existing deposits has been sufficient to
meet domestic and export demand

the Wara coal is environmentally friendly and is a deposit whose

characteristics make it suitable for use in the growing domestic
power plant market.

22

Terimakasih, Maturnuwun.

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