Plant Master Plan (PMP) 2012-2016: Holcim Indonesia Narogong Plant

Plant Master Plan (PMP) 2012-2016
Holcim Indonesia
Narogong Plant
IDR (Rupiah)
Please distribute the finalized PMP documents by August 1, 2011 as stated below:
1. PMP Presentation (.ppt), Executive Summary (.pdf) and CAPEX list (.xls) to be sent to:
Group Company:
Eamon Ginley (CEO)
Lilik Unggul (Technical Director)
Olaf Nahe (CFO)
Patrick Walser and Fazri Y(VP Sales and Distribution)
Raju Goyal (Plant Management Team)
HGRS:
albert.pinyol@holcim.com (Cement Manufacturing Services)
Lupi.hariarti@holcim.com (Regional Controller)
Roland.locher@holcim.com (Technical Coordinator)
2. KPI-Simulator (.xls), Raw Material Management Questionnaire (.xls), MAC Assessment Tool (.xls) to be sent to:
albert.pinyol@holcim.com (Cement Manufacturing Services)
Roland.locher@holcim.com Technical Coordinator
© Holcim Group Support Ltd 2012. The copyright for this document and all appendices are reserved by Holcim Group Support Ltd.
Plant Sign off – PMP 2012-2016
Holcim Indonesia
Narogong Plant
IDR (Rupiah)
Herewith I confirm that the information reported in the Plant Master Plan 2011-2015
is accurate and complete.
(Thomas Elvermann)
(thomas.elvermann@holcim.com
© Holcim Group Support Ltd 2012.

PMP Agenda
 01 Executive Summary
 02 Occupational Health & Safety
 03 Volumes and Product Portfolio
 04 Material Supply
 05 Energy Supply
 06 Manufacturing Process
 07 Auxiliaries and Infrastructure
 08 Maintenance and Equipment Reliability
 09 Quality
 10 Plant Environmental Profile
 11 Plant Organization
 12 Production Cost Projection
 13 Plant Layout
 14 Main Operational Measures & CAPEX Projects
 15 Appendices*
*optional
3
Holcim Indonesia Agenda Narogong PMP 2012-2016
1. Executive Summary
1.1 Executive Summary Text Document

1.2 Roadmap on Plant Objectives and Targets

1.1 Executive Summary
(Please use the provided Word template to prepare your Executive Summary text document.
When finished embed it here: select the file from its folder, copy it, and paste it inside this slide)
(please replace the header as appropriate) Holcim Group Support Ltd

Cement Manufacturing Services
Im Schachen
5113 Holderbank
PMP 2012-2016 <insert plant name>
Executive Summary
Please prepare the Executive Summary using this document and with the following indications
The executive summary should have the form of a text document, and not more than three pages in extension. The purpose of the executive
summary is to provide the readers, especially the leadership of the company and EXCO member, with an overview of the plant strategic
vision and objectives for the next five years. It should include summaries of:
1. The outlook on market and customer needs
2. The five top priorities of the plant
3. Up to five most important projects, not necessarily involving CAPEX
4. The different chapters of the PMP, here reference can be made to the corresponding slides in the PMP PowerPoint document. Follow
the sequence as indicated hereafter. Write two to three sentences about each chapter but only if there is something relevant to report.
- Occupational Health & Safety
- Volumes and Product Portfolio
- Material Supply
- Energy Supply
- Manufacturing Process
- Maintenance and Equipment Reliability
- Quality
- Plant Environmental Profile
- Plant Organization
- Production Cost Projection.
The executive summary should end with a clinching closing sentence or two that answers the reader’s questions “What are the challenges
this plant is facing? Does the plant have a clear strategy to address those challenges?”
5
Holcim Indonesia 1/2 Narogong PMP 2012-2016
Roadmap on Plant Objectives and Targets 2012 - 2016
2012 2013 2014 2015 2016

 CLK N1 = 1,553 KT  CLK N1 = 1,541 KT  CLK N1 = 1,541 KT  CLK N1 = 1,541 KT  CLK N1 = 1,546 KT
BCM  CLK N2 = 2,456 KT  CLK N2 = 2,494 KT  CLK N2 = 2,541 KT  CLK N2 = 2,541 KT  CLK N2 = 2,548 KT
 NAI Kiln N1 = 91.6%  NAI Kiln N1 = 90.%  NAI Kiln N1 = 90%  NAI Kiln N1 = 90%  NAI Kiln N1 = 90%
 NAI Kiln N2 = 87.6%  NAI Kiln N2 = 88.4%  NAI Kiln N2 = 90%  NAI Kiln N2 = 90%  NAI Kiln N2 = 90%
 Net OEE Kiln N1 = 88.4%  Net OEE Kiln N1 = 87.1%  Net OEE Kiln N1 = 87.1%  Net OEE Kiln N1 = 87.1%  Net OEE Kiln N1 = 87.1%
 Net OEE Kiln N2 = 83.5%  Net OEE Kiln N2 = 84.4%  Net OEE Kiln N2 = 86.0%  Net OEE Kiln N2 = 86.0%  Net OEE Kiln N2 = 86.0%
 CMT N1 = 2,078 KT  CMT N1 = 2,086 KT  CMT N1 = 2,328 KT  CMT N1 = 2,119 KT  CMT N1 = 2,395 KT
 CMT N2 = 2,982 KT  CMT N2 = 3,053 KT  CMT N2 = 3,053 KT  CMT N2 = 3,053 KT  CMT N2 = 3,053 KT
 CF Avg = 81.9 %  CF Avg = 80.2%  CF Avg = 80%  CF Avg = 80%  CF Avg = 80 %
 SEEC = 94.1 kWh/t cem  SEEC = 93.7 kWh/t cem  SEEC = 93.2 kWh/t cem  SEEC = 93.2 kWh/t cem  SEEC = 93.2 kWh/t cem
 STEC = 3359 MJ/t clin  STEC = 3365 MJ/t clin  STEC = 3379 MJ/t clin  STEC = 3399 MJ/t clin  STEC = 3404 MJ/t clin
 Product Quality Index N1 > 90% (2012-2016)

PMI  Product Quality Index N2 > 90% (2012-2016)
 Implement training plan and pass Holcim Leadership Competencies for FML,MML,and SML
HRE  Implement operator/ PM Excellent program and OPI sustainability implementation
 >80% IDP implementation for key talent
 Succession planning for Tuban organization
 Proper = Green (2011)  Proper = Green (2012)  Proper = Gold (2013)  Proper = Gold (2014)  Proper = Gold (2015)
SEP  PEP Score > 86  PEP Score > 86  PEP Score > 86  PEP Score > 86  PEP Score > 86
 TSR NAR Plant = 11.9%  TSR NAR Plant = 14.1%  TSR NAR Plant = 18.3%  TSR NAR Plant = 20.5%  TSR NAR Plant = 21.5%
 Cibadak Quarry Mine Closure to start reclamation &
Goal Creation of Value
revegetation program
Geographic Local Management
Strategy Product Focus
Diversification Global Standards

CSR 
Stakeholder Index : Community Perception Survey by Third Party (every 2 years : 2012, 2014, 2016)
Supporting sustainable community development programme
Mindsets
Sustainable Better
Environmental Cost
Performance Management
Permanent
Marketing
Innovation
Human
Resources
Excellence
Corporate
Social
Responsibility
 LTI FR < 1.1 and no injuries causing death or permanent disability Base People
 Implement Corporate CSR approach
2. Executive Summary
2. Occupational Health & Safety
2.1 Status of OH&S Management System: Green Pyramid

2.2 Special Corporate OH&S Initiatives
2.3 OH&S - Key Performance Indicators
2.4 Health & Safety Main Issues / Key Actions planned

2.1 Status OH&S Management System: Green Pyramid
(Reference: Holcim Portal/Functional Areas/Occupational Health and Safety/Corp. Standards/OH&S Management System)
Based on the HIL Internal Audit Report (#ID-2012-002), at 17 February – 13 March 2012
Grey colored blocks are not audited by HIL Internal Control Department
8
Holcim Indonesia 2. Occupational Health & Safety Narogong PMP 2012-2016
(Reference: Holcim Portal - Functional Areas - Occupational Health and Safety – Corp. Standards – Directives – FPE; Tools FPE Quarterly Report)
FPE (Fatality Prevention Element) Implementation

(Based on self assessment of FPE Audit Protocols at January 2012)
Topic Status* Next Steps CAPEX

 Provision of competency based
training for Scaffolding, PFAS,
Elevated Work Platform,
Anchoring and Lifeline System.
FPE#1: Working at Heights 77.5 %
 Inspection, testing and register of
Elevated Work Platform,
Anchoring and Lifeline System,
portable ladder.
 Provide a competency based
training for the person who
undertakes surveys to identify
hazardous energy sources, the
person who perform a function of
FPE#2: Isolation & Lockout 88.3 % an isolation officer and the person
who perform a function of
personal lock holder.
 Define design and specification
for all mobile and fixed plants
required for the isolation points.
 Develop company driving license
system.
 Pre-start inspection check
FPE#3: Vehicle & Traffic
73.6% program on light vehicles.
Safety
 Periodical mechanical inspection
program on HIL light and heavy
vehicles.
9
* Actual status of the implementation (two green blocks equal 50% of FPE implemented)


 Define specification and SOP for
electrical panels, enclosures,
control rooms, substation and
other electrical equipment,
electrical safety protection
devices and electrical line/circuit
FPE#4: Electrical Safety 68.3%
diagram.
 Register periodical testing
inspection and color-coding
inspection tag on all portable
electrical installations and
equipment.
 Provide warning hazards sign at
access points to machine guards.
 Register physical inspection
checklist on machine guarding.
 Provide and implement a formal
training session for advising all
aspects of machine guarding
FPE#5: Machine Guarding 67.8 %
requirements.
on machine guards. Including this
design and specification on
corporate engineering design
safety standard and procurement
process.
10


 Provide and implement a
competency based training for:
person who perform a work inside
of confined/restricted space,
FPE#6: Confined Spaces 87.3 %
gas detection/monitoring and
standby person.
competency based training for the
gas atmospheric testing
equipment and Standby
person/Firewatchers/Fire sentries
for the welding machines, welding
FPE#7: Hot Work 84.7 % safety equipment, hydrostatic test
certification on compressed gas
cylinders, chemical signs on
compressed gas cylinders, hot
slags resistors, screens, catchers
or blankets, flash back arrestors
and flint-stone, hoses,
connectors, torches and clamps.
for the sloping excavation,
protective support system,
FPE#8: Digging & Excavation 79.6 %
accumulated excavated soil, 11
access and egress and water
Holcim Indonesia 2. Occupational Health & accumulation removal.
Safety Narogong PMP 2012-2016


competency based training for the
lifting and rigging operations
 Provide and implement a skill
assessment program for riggers
and crane operators.
 Register physical inspection on
lifting supports.
FPE#9: Lifting & Supporting
86.2 %  Define designs and specifications
Loads
for man-basket, spreader beam,
anchoring points. Include these
designs, specifications and
required certifications on the
procurement process.
 Include the SOP for lifting and
supporting loads on maintenance
shop manual.
FPE#10: Working near Water N/A
FPE#11: Rail Safety N/A
12


• Provide a mine engineer services
to investigate the specification of
stability for slopes and stockpiles.
• Develop a competency training
for who conducting the slopes
FPE#12: Quarry Slopes &
71.6 % and stockpiles stability inspector.
Stockpiles
• Develop the SOP for constructing
the slopes and stockpiles, as per
their specification.
• Develop a monitoring program for
slopes and stockpiles.
• Develop a monitoring program for
FPE#13: Exposures to Hot cement process facilities on their
82.4 %
Material, Surfaces and Gasses hot materials, surfaces and
gasses.
Contractor Safety • Under of Project Management
61.2 %
Management Directive Approach (Corporate OHS Dept)
13
2.3 OH&S - Key Performance Indicators
(Summarize key issues in period, and report any incidents causing death/permanent disability).
Key issues in period 2008-2011
 Maintained strong focus on target

achievements of Planned Inspection,
Safety Observation Tour and Safety
Topic meetings.
 474 hazards were reported and 43.88 %
of them have been closed out
 Improved fire protection system into an
automatic fire water hydrant pumping
system.
 Delivered Basic OH&S Trainings for all
employees and third party. They are:
Personal Risk Assessment, Hazard
Reporting, Job Safety Analysis, Safety
Toolbox Meeting, Fire Fighting and
Prevention, Medical Emergency
Responder and Confined Space
Rescue.
 Required supports on the FPE
implementation.
14
Holcim Indonesia 1. Executive Summary Narogong PMP 2012-2016
2.4 Health & Safety Main Issues / Key Actions planned
(Please indicate the main Health / Safety issues and Planned Key Actions based on the audits of the OH&S management
system, your incidents investigations, corporate input and foreseen changes in organization or processes. Indicate the
Cost & Benefit where appropriate)
Health & Safety Main Issues (max 5) Key Actions planned (max 5)
 Achieve 85% implementation of Fatality  FPE and CSMD Audits and Gap
Prevention Elements and 70% Analysis.
implementation of Contractor Safety
Management Directive  Deliver Basic OH&S, Fire and Rescue
trainings and the implementation of
 Promote stakeholders’ knowledge and Health and Safety Culture Index
basic skills on OH&S, Fire and Rescue. program.
 Promote reliability on the fixed  Preventive maintenance and testing

automatic fire water suppression sytem. program for the fixed automatic fire
water suppression system.
 Achieve 70% hazard report closed out.
 Register hazard report action log on
 Health prevention by managing health Envoy system which will remind
risk at workplaces. periodically to its Person In Charge
(PIC).
 Mapping health profiles and workplaces

environment to meet the Fit For The Job
program.
15
3. Volumes and Product Portfolio
3.1 Product Portfolio Development

3.2 Cement Volumes
3.3 Clinker Volumes
3.4 Packaging Type
3.5 Transportation Mode

3.1 Product Portfolio Development
2012 1%
0%
A ST M 1157 GU
2016 1%
0% A ST M 1157 GU
A ST M C150 I A ST M C150 I
22% A ST M C150 V 26% A ST M C150 V
SNI T Y P E I SNI T Y P E I
Oi l Wel l A P I G Oi l Wel l A P I G
HOLCI M QUI CK CA ST HOLCI M QUI CK CA ST

2%
2%
9%
6% 65%
66%
Key issues
 In 2012, volume of cement market
demand increase to 5,2 mio T cement,
Fi l l er f or t r ansf er out (pr oduced i n cement mi l l ) Fi l l er f or t r ansf er out (pr oduced i n cement mi l l )
compared to 2011 which was reached

[ def aul t ] [ def aul t ]
4,6 mio T cement.

 GU Clinker factor using assumption:
 GU mainly produced in N2 by assuming
2012 target was at 74 % and there will
be a reduction 1% p.a until 2014
 Clinker Factor for GU N2 in 2015 and
2016 is assumed similar to 2014 (target
72%)
17
Holcim Indonesia 3. Volumes and Product Portfolio Narogong PMP 2012-2016
3.2 Cement Volumes
Cement Volumes
Unit 2010 2011 2012 2013 2014 2015 2016
Cement purchased and/or transferred in [000 t] 0 0 0 0 0 0 0
Cement purchased and consumed in production [000 t] 0 0 0 0 0 0 0
Cement transferred in and consumed in production[000 t] 0 0 0 0 0 0 0
Cement production volume [000 t] 3,810 4,609 5,060 5,139 5,380 5,165 5,456
Key issues
6,000 5,380 5,456
5,060 5,139 5,165  Starting October 2012 FM1 will be
5,000 4,609
reactivated as an impact of demand
3,810
4,000 increase from budget
kt cem
3,000
 Starting in mid 2012, Fly Ash
2,000 consumption will be optimized to reduce
1,000 clinker factor (target 74%)
0 0 0 0 0 0 0
0  Narogong grinding capacity using below
2010 2011 2012 2013 2014 2015 2016
assumption:
Cement purchased and/or transferred in Cement production volume
 Vibrating Screen installation in
FM6 causes capacity increase
similar to FM5
 FM1 Reactivation Starting October
2012
18
3.3 Clinker Volumes
Clinker Volumes
Unit 2010 2011 2012 2013 2014 2015 2016
Clinker Shipped (sold and/or transferred out) [000 t] 789 337 116 0 0 0 0
Clinker purchased and/or transferred in [000 t] 0 90 288 0 250 50 300
Clinker internally consumed for production [000 t] 3,177 3,793 4,145 4,124 4,303 4,130 4,383
Opening inventory [000 t] 96 157 126 197 108 138 140
Closing inventory [000 t] 157 126 197 108 138 140 150
Clinker production volume [000 t] 4,028 4,009 4,043 4,036 4,082 4,082 4,093
Key issues
5,000
 Assumptions made were considering 14
4,303 4,383
4,500 4,028 4,009 4,145
3,793
4,043 4,124
4,036 4,082 4,130
4,082 4,093 days kiln overhaul, while on 2013
4,000
3,500 3,177 consider 21 days overhaul for N2 due to
3,000 tyre and kiln shell replacement
kt clin
2,500
2,000  On 2012-2016, clinker internally
1,500
1,000
789 consumed for Finish Mill is above kiln
337
500 0 90
288
116 00
250
0 050
300
0 capacity, therefore need import clinker
0
2010 2011 2012 2013 2014 2015 2016
or transfer clinker from Cilacap
 Due to deficit clinker on 2013-2016,
Clinker Shipped (sold and/or transferred out) Clinker purchased and/or transferred in
NAR Plant cannot supply transfer clinker
Clinker internally consumed for production Clinker production volume
to Ciwandan
19
3.4 Packaging Type
Packaging Type
Unit 2010 2011 2012 2013 2014 2015 2016
Bulk [000 t] 1,509 1,782 2,139 1,998 2,094 2,149 2,276
Bag [000 t] 2,301 2,828 2,921 3,141 3,286 3,016 3,181
Total [000 t] 3,810 4,609 5,060 5,139 5,380 5,165 5,456
Key issues
 ...
6,000
5,000
2,094 2,276
4,000 2,139 1,998 2,149
1,782
kt cem
3,0001,509
2,000
3,141 3,286 3,016 3,181
2,828 2,921
1,0002,301
0
2010 2011 2012 2013 2014 2015 2016
Bag Bulk
20
3.5 Transportation Mode
Transportation Mode
Unit 2010 2011 2012 2013 2014 2015 2016
Road [000 t] 2,601 3,154 3,595 3,517 3,682 3,534 3,734
Rail [000 t] 0 0 0 0 0 0 0
Waterway [000 t] 1,200 1,455 1,658 1,622 1,698 1,630 1,722
Key issues
 ...
6,000
5,000
1,658 1,698 1,722
1,622 1,630
4,000 1,455
0 0 0
0 0
kt cem
1,200 0
3,000
0
2,000 3,682 3,734
3,595 3,517 3,534
3,154
2,601
1,000
0
2010 2011 2012 2013 2014 2015 2016
Road Rai l Wat er way
21
4. Material Supply
4.1 Own Raw Material Deposits
4.1.1 Overview of Own Deposits
4.1.2 Raw Material Pyramid
4.1.3 Reserves
4.2 Raw Material Supply
4.2.1 Quality of Main Components
4.2.2 Correctives and Raw Materials (Purchased)
4.2.3 MIC, Additives and Gypsum (Purchased)
4.2.4 Cost of Raw Materials (Purchased)
4.3 Quarry Activities
4.3.1 Quarry Planning
4.3.2 Quarry Rehabilitation
4.3.3 Risks in the Quarry
© Holcim Group Support Ltd 2009. The copyright for this document and all appendices are reserved by Holcim Group Support Ltd.
Raw material Distance from Transportation

Mining Permit
component hopper (type of equipment)
Nar 1 : 2.2 km Off road dump trucks, Caterpillar 773

Limestone (No. SIPD : 541.3/291
Limestone B/D cap 45 ton (7 unit) and Caterpillar
Kpts/Huk/2002) Nar 2 : 1.2 km 777 cap 85 ton (4 unit), owned by HIL.
Shale No. SIPD : 545/485- On road dump trucks cap. 25 ton

Shale 2 km
Kpts/Huk/2006 (contractor).
Silica (Cicantayan, No IUP :

Silica 80 km On road dump trucks cap. 35 ton
503.8/2018-BPPT/2012)
(contractor).
• Following the new regulation (PP no. 23 tahun 2010), all the mining permits (SIPD) are in the process to be
changed become IUP.
• For Silica Cicantayan, Environment Impact Regulation are still in review.
23
Holcim Indonesia 4. Material Supply Narogong PMP 2012-2016
Limestone
Base on own mining permit area of Limestone No.541.3 / 291 – Kpts / Huk / 2002, the area divide into :
Limestone quarry consists of 510.47 ha property right (existing)
 The existing area 510.47 Ha :
- Final mining level is 100 asl.
- 42 drilling explorations in 510.47 Ha limestone.
 The future area 275 Ha :

- This area will be cleared legally at the end 2012
- 22 drilling explorations in 275 Ha limestone.
Exsisting
Extension
24
Holcim Indonesia Narogong PMP 2012-2016
Shale
Base on own mining permit area of Shale No. 545/485 – Kpts / Huk / 2006
 Shale reserves was calculated based on SIPD permit 213 ha.
 In EIA, the lowest level can be mined is 90 asl
 13 drilling explorations in shale reserves.
Geological map & cross section of the limestone and shale area, block Ps. Kamuning – Ps. Tangkil.
25
Silica
 Cicantayan silica sand locatet in West Java and nearest to the company.
 The existing IUP permit is valid until 2017.
 Review the EIA, with area that conform to the plan being proposed IUP (include the
area Kerud)
 For Access road using public roads, but need to be planned to make road own of Holcim
(purchase land)
Walat
Kerud
26
4.1.2 Raw Material Pyramid: Limestone
Block What is missing Action plan Due date

Short A short term quarry plan is available, but prepared with Purchase an Mid of
term inadequate control software. appropriate 2013
planning software
27
4.1.2 Raw Material Pyramid: Shale
Block What is missing Action plan Due date

Short A short term quarry plan is available, but prepared with inadequate Purchase an Mid of
term control software. appropriate 2013
planning software
28
The long-term extraction plan is not up-to-date.
4.1.2 Raw Material Pyramid: Silica
Block What is missing Remarks

No block model is available or it has been prepared with insufficient information (drill No need. Deposit evaluation had been done by using
Deposit evaluation
holes). cross section
The material analyses and loading schedules are periodically cross- checked against
No need. Extraction quality control had been done by
Extraction quality control the QSO block model, PGNAA (raw material and/or raw mix) results and raw meal
using cross section
analyses.
Short term quarry The QuarryMaster optimization software is utilized to elaborate the weekly / bi- No need. Short term quarry planning had been done
planning monthly extraction plan / production schedule. by using map and spreadsheet excel.
Mining rights The mining rights on the deposit are valid for more than 10 years. 29
Mining right now is 5 years and can be extended for
10 years and renewable.
4.1.3 Reserves
Reserves
CaO = (48-50.5%) Life time (years)
MgO =<2.5%
Deposit SO3=<0.2%
Standard
Actual production
(metric million t) capacity
volume
volume
Limestone 121.48 20 19
Reserves
SiO2 = 56-60% Life time (years)
Al2O3 =>15%
Deposit SO3=<1.5%
Standard
Actual production
volume
volume
Shale 76.4 86 87
Reserves Life time (years)

SiO2 = >85%
Deposit
Standard
Actual production
volume
volume
Silica (Cicantayan) 46.64 266.36 323.33

Status : Exsisting Januari 2012
30
4.1.3 Reserves
Extension area.
Reserves
MgO =<2.5%
Deposit SO3=<0.2%
Standard
Actual production
volume
volume
Limestone 426,739.70 71.12 68.8
Exsisting + extension area.
Reserves
MgO =<2.5%
Deposit SO3=<0.2%
Standard
Actual production
volume
volume
Limestone 654,756.82 109.13 105.60
Notes : Reserve calculation with consider all area are already opened.
31
4.2.2 Purchased Correctives (< 5% in Raw Meal)
Compositional Raw Material Storage
Contract*
criteria based (>5% in Raw Meal) or Capacity Applicable
Component Main Supplier** * Unit Actual 2010 Actual 2011 Forecast 2012 Target 2013 Target 2014 Target 2015 Target 2016
on dry Corrective* ** Cost Center
(<5% in Raw Meal) (Y/N)
material [t]
Coarse ashes from coal
Bottom ash power stations (not Corrective Raw Material Preparation
[t] 4,535 27,216 42,500 50,000 50,000 50,000 50,000
airborne)
WWT Sludge Corrective Raw Material Preparation
[t] 1,921 479
Spent Catalyst Corrective Raw Material Preparation
[t] 4,000 4,000 4,000 4,000 4,000
Iron corrective Fe2O3 > 30 %and AR < 1 Corrective 3,000 MU Y Raw Meal Preparation
[t] 61,645 31,152 31,804 105,366 106,577 106,577 106,902
Iron corrective Fe2O3 > 30 %and AR < 1 Corrective 3,000 PT. SMELTING Y Raw Meal Preparation
[t] 54,421 98,506 81,789 52,683 53,289 53,289 53,451
Iron corrective Fe2O3 > 30 %and AR < 1 Corrective N Raw Meal Preparation
[t] 756
Key issues
 Copper Slag and Iron Sand Mixing as an

Impact of Copper Slag Sustainability Supplying
Problem
32
4.2.2 Purchased Correctives (> 5% in Raw Meal)
Compositional Raw Material Storage
Contract*
criteria based (>5% in Raw Meal) or Capacity
Component Main Supplier** * Applicable Cost Center Unit Actual 2010 Actual 2011 Forecast 2012 Target 2013 Target 2014 Target 2015 Target 2016
on dry Corrective* **
(<5% in Raw Meal) (Y/N)
material [t]
Silica corrective SiO2 > 30 %and SR > 2.7 Corrective 10,000 MPA/SAM Y Raw Meal Preparation [t] 141,809 56,948 29,731 29,305 29,305 15,134 15,134
Silica corrective SiO2 > 30 %and SR > 2.7 Raw Material 5,000 Pasir Lampung/Bangka N Raw Meal Preparation [t] 1,520 0
Key issues
 In the Beginning of 2012, Silica Cicantayan

had been fully used for Clinker Production
33
4.2.3 MIC, Additives and Gypsum (Purchased)
Raw materials consumed for ground cement (wet basis as delivered)
Raw materials for ground cement Unit Actual 2010 Actual 2011 Forecast 2012 Target 2013 Target 2014 Target 2015 Target 2016
Slag (GBFS) [t] 0 0 0 0 0 0 0
Artificial Gypsum [t] 25,607 38,627 39,190 29,858 31,242 28,632 30,199
Natural Gypsum [t] 118,731 145,839 155,777 160,245 167,797 162,321 171,534
Limestone (purchased) [t] 0 0 0 0 0 0 0
Fly ash [t] 43,655 0 76,661 122,241 183,166 183,468 183,724
Other ash [t] 0 0 0 0 0 0 0
Puzzolan [t] 68,624 225,718 174,541 177,301 185,520 170,020 179,327
Cr6+ reduction agent [t] 0 0 0 0 0 0 0
Kiln dust [t] 0 0 0 0 0 0 0
Other [t] 0 0 0 0 0 0 0
Total purchased raw materials for ground cement [t] 256,616 410,184 446,169 489,645 567,725 544,440 564,784
Key issues
 Fly Ash Consumption will be optimized starting July 2012 to reduce clinker factor (target 74%) with
Mixing Proportion 50% TJB and 50% Suralaya
 Starting 2012, FGD Gypsum will be used as substitution for Phospo Gypsum due to competitive price
 Mixing proportion of Pozzolan is changed from 8% to 6% (impact from fly ash consumption )
 In 2013 Fly Ash consumption Proportion will be based on 35 % TJB, 35% Suralaya, and 30% Cirebon
34
4.2.4 Cost of Raw Materials (Purchased)
Key issues
 Increasing raw materials cost is caused by increasing price of each material itself as used in
FinPlan assumption.
 Silica Cicantayan are used starting 2011
 Fly ash significant increased 2011 to 2012 (8%) and 2012 - 2013 (5.6%) for price per tonnage
 Unit price Gypsum increase 6.75%, fly ash increase 5.6% for 2013-2016.
 Unit price pozzolana increase 6.5% for 2013-2016

35
5. Energy Supply
5.1 Electrical Energy

5.1.1 Electrical Energy Consumption & Costs
5.2 Thermal Energy
5.2.1 Thermal Energy Costs
5.2.2 Thermal Energy Consumption
5.2.3 Fuel Mix Projection
5.2.4 Thermal Energy Operational Measures & CAPEX

5.1 Electrical Energy
Key issues
 Lower production rate FM6 NAR2

compared to FM5
 Down time FM NAR2 due to BE additive

broken
 Limited FM NAR1 separator fans motor

power
 Lower mill availability due to improper

quality of spare parts material
 Raw mill NAR1 BE product capacity

limitation
 Low efficiency of kiln NAR2 ID fans drive
 False air at raw mill, kiln, finish mill system
 Low efficiency of fixed speed NAR2 cooler

Fan
 Low efficiency of NAR2 air plant

compressor
37
Holcim Indonesia 5. Energy Supply Narogong PMP 2012-2016
 Main operational measures
 Utilize proper quality of spare parts material
 Periodic false air measurement and corrective action
 Utilize grinding aid for cement production
 Propose VSD drive for NAR2 cooler Fan
 Propose high efficiency air plant compressor
 Propose to upgrade capacity of 393-BE1
 Main CAPEX projects

 Convert BE to BC FM NAR2
 Vibrating screen installation at FM6 NAR2
 Replace kiln NAR2 ID fans drive
 Upgrade FM NAR1 separator fan motors power including VSD
38
5.2 Thermal Energy
Specific Cost of Thermal Energy
200,000 Key issues
187,171.90
180,000 179,053.75187170.06
1.85
172,701.80174,584.56178884.57
169.18
160,000 787.54
2,225.36 173797.01
156,588.37170476.44  Limitation supply of biomass
4,868.48
151719.89
140,000
123,429.97
120,000
 Coal price is significant increase from
RC/t clin
985.23
110,757.47122444.74
100,000 106382.11
4,375.35
80,000
2011 to 2012 (17.80%), 2012 to 2013
60,000 (22 %) and increasing by forecast
40,000 inflation rate onwards.
20,000
0
2010 2011 2012 2013 2014 2015 2016
 Aggressive competition in waste
Specif ic act ual cost of alt ernat ive t hermal energy
market with lower disposal fee strategy
Specif ic act ual cost of t radit ional t hermal energy

Specif ic act ual cost of t hermal energy
Limitation supply of biomass
TEE
25%
21.5% Proposals for performance improvement

20% 20.5%
17.9%
 Increasing waste volume consumption
15%
12.9%
by Operational improvement in 2012
10%
onward improves TEE values
9.3% 9.0%
7.8%
5%
 Segmentation, Targeting, and
Positioning marketing strategy in place
0% & implemented
2010 2011 2012 2013 2014 2015 2016
39
 Main operational measures (incl. costs & benefits)
 Ensure 70% LRC Consumption
 Optimize AFR Usage to achieve TSR
 Main CAPEX projects (incl. costs & benefits)
40
5.2.2 Thermal Energy Consumption
Key issues
 Low heat recuperation in cooler NAR2
 High moisture of biomass
 High STEC increase in 2013 forward due to higher

TSR to compensate water and ash content in fuels
 High preheater exit temperature at NAR1 due to

low cyclones 3&4 efficiency
 Limited coal mill drying capacity, can not go more

than 70% of low rank coal proportion
 Low biomass volume must be compensated with

RDF
 Lack of preparation and dosing AF
Proposals for performance improvement

 Fixed inlet cooler at NAR2
 Roofing biomass storage (on going)
 Modify cyclones based on CFD analysis at NAR1

preheater
 Implementation of AF platform
 Install dust trap for coal mill hot gas NAR1
 Install Schenk multiflex dosing at NAR1
 Introduce RDF sourcing strategy 41

5.2.3 Fuel Mix Projection
Key issues
 Quality fluctuation of waste feeding
to Kiln
 Optimal feeding systems with high
accuracy to reduce feed rate
fluctuation will contribute significantly
to the achievement.
 Better waste mix homogenization of

Shredded product to ensure all type
of waste is managed according to
plan
 Improvement of AFR feeding facility

to increase waste utilization in Kiln
42
5.2.3 Fuel Mix
• Develop Geocycle information and control system to synchronize planning
and execution (mixing & feeding planning of waste)

Table 5.2.3.1 CAPEX related with increasing waste utilization in Kiln
43
5.2.3.1 Traditional Fuels
Forecast 2012 Volume consumed (as fired) [t]
Net Calorific Value Storage capacity
Actual 2010 Actual 2011 Forecast 2012 Target 2013 Target 2014 Target 2015 Target 2016
[MJ/t] [t]
Traditional Fuels
coal + anthracite + waste coal 18,393 606,196 634,496 648,059 634,735 613,238 597,499 592,351
petrol coke
(ultra) heavy fuel, bitumen
diesel oil 41,888 1,483 1,435 1,470 1,500 1,500 1,500 1,500
natural gas (dry)
shale
lignite
Purchase price of fuel including transportation, as received [RC/t]

Unit Actual 2010 Actual 2011 Forecast 2012 Target 2013 Target 2014 Target 2015 Target 2016
Traditional Fuels
coal + anthracite + waste coal [RC/t] 516,550 567,114 687,454 738,096 866,621 914,315 966,431
petrol coke [RC/t]
(ultra) heavy fuel, bitumen [RC/t]
diesel oil [RC/t] 5,697,080 8,515,601 8,519,518 8,572,810 9,660,815 9,364,853 9,898,650
natural gas (dry) [RC/t]
shale [RC/t]
lignite [RC/t]
44
5.2.3.2 Alternative Fuels
Forecast 2012 Volume consumed (as fired) [t]
Fraction of Biomass Net Calorif ic Storage
Actual 2010 Actual 2011 Forecast 2012 Target 2013 Target 2014 Target 2015 Target 2016
[%] Value [MJ/t] capacity [t]
Alternative Fuels
Rice Husk 0% 8,364.0 102,243 64,246 75,000 75,000 75,000 75,000 75,000
Saw Dust 0% 315 963
PKS 0% 8,742
Fuel Wood 0%
CPO 0%
BBS 0% 15,540.0 4,917 7,787 6,000 6,000 6,500 7,000 7,000
Plastic (Printed Circuit Board off cuts) 0% 20,910.0 330 333 1,500 2,500 3,000 3,500 3,500
Paint Sludge 0% 16,728.0 2,762 3,322 5,000 6,300 7,250 8,250 8,250
Sorted Municipal Solid Waste 0% 12,546.0 9,791 6,565 16,950 21,500 47,000 59,000 66,000
Oil Contaminated Rags 0% 20,910.0 1,798 1,892 4,000 7,000 12,000 12,500 12,500
Consumer Products (Off Spec) 0% 14,637.0 2,089 4,473 2,700 5,000 6,500 7,750 8,750
Rubber 0% 22,800.0 6,405 7,521 7,500 9,500 12,500 14,000 14,500
Paper (ex packaging) 0%
Textile (ex Garment) 0%
Resin 0%
Other Solid Waste 0% 18,410.0 3,147 6,357 6,000 7,500 9,000 10,000 10,000
Oil sludge 0% 18,410.0 6,479 1,527 6,100 9,000 10,000 12,000 12,000
Other liquid with CV 0% 14,644.0 542 2,400 1,500 2,500 3,500 6,000
CFC 0% 10 15 20 20
0%
Purchase price of fuel including transportation, as received [RC/t]

Unit Actual 2010 Actual 2011 Forecast 2012 Target 2013 Target 2014 Target 2015 Target 2016
Alternative Fuels
Rice Husk [RC/t] 167,741 225,000 275,000 290,400 306,082 321,692 338,098
Saw Dust [RC/t] 90,923 126,093 190,000 200,640 211,475 222,260 233,595
PKS [RC/t] 400,061
Fuel Wood [RC/t] 225,943
CPO [RC/t] 2,572,241 3,661,278 3,661,278 3,844,342 3,844,342 3,844,342
BBS [RC/t] -150,000 -300,000 -300,000 -300,000 -300,000 -300,000 -300,000
Plastic (Printed Circuit Board off cuts)
[RC/t] -400,500 -405,000 -400,000 -400,000 -400,000 -400,000 -400,000
Paint Sludge [RC/t] -445,000 -450,000 -500,000 -500,000 -500,000 -500,000 -500,000
Sorted Municipal Solid Waste [RC/t] -44,500 -45,000 -50,000 -50,000 -50,000 -50,000 -50,000
Oil Contaminated Rags [RC/t] -534,000 -540,000 -500,000 -500,000 -500,000 -500,000 -500,000
Consumer Products (Off Spec) [RC/t] -801,000 -810,000 -600,000 -600,000 -600,000 -600,000 -600,000
Rubber [RC/t] -44,500 -90,000 -50,000 -50,000 -50,000 -50,000 -50,000
Paper (ex packaging) [RC/t]
Textile (ex Garment) [RC/t]
Resin [RC/t]
Other Solid Waste [RC/t] -667,500 -810,000 -500,000 -500,000 -500,000 -500,000 -500,000
Oil sludge [RC/t] -178,000 -180,000 -150,000 -150,000 -150,000 -150,000 -150,000
Other liquid with CV [RC/t] -623,000 -630,000 -600,000 -600,000 -600,000 -600,000 -600,000
CFC [RC/1'000 Nm3]
-53,400,000 -54,000,000 -50,000,000 -50,000,000 -50,000,000 -50,000,000 -50,000,000
[RC/t]
45
6. Manufacturing Process
(Focus: Performance)
6.1 Mass Flow
6.2 Raw Material Extraction
6.3 Raw Material Preparation
6.4 Raw Meal Preparation
6.5 Fuel Preparation
6.6 Clinker Production
6.7 Cement Grinding
6.8 Shipping Station

6.1 Mass Flow – N1
Quarry (extraction): (Clinker Production)
7 x Dump Truck 773 Critical
1 x Wheel Loader Bottleneck Equipment
condition
2 X Motor Grader
1 x Track drill
2 X Bulldozer
1 x Truck Mixer Clinker Silo
65,000 t
Hammer crusher CPO pump CPO tank

7200 lph 4000 kl
Correctives 1000 tph
Alternatives materials
Cooler IDO pump IDO tank
(Al2O3, Fe2O3) 7200 lph 4000 kl
CaO – SiO3
Storage Hall Kiln NAR1
340 tph Coal Mill
Coal Storage NAR
(30 tph)
30,000 t
Limestone 30 tph
35,000 t
Dust Silo
850 t BBS
PPLI
Clay (3.5 tph)
3 X 6,000 t
Blending Silo AFR
2 x 12,000 t
Vertical mill
420 tph dry
47
Holcim Indonesia 6. Manufacturing Process Narogong PMP 2012-2016
6.1 Mass Flow-N1
(Cement Production)
Clinker Storage Additive Supply Cement Silo 1
5,000 t
Cement Silo 2
5,000 t Bag Plant
Clinker Gypsum Limestone Bin B
1,500 t 2 x 180 bag/h
Cement Silo 3
5,000 t
Bin A
1,500 t Cement Silo 4
5,000 t
HRC-N HRC-S Packing Room

(225 tph) (225 tph) Cement Silo 5
5,000 t Packer: 2 x 110 ph
200 tph 200 tph
Cement Silo 6
5,000 t
Cement Silo 7 Bulk by truck

Finish Mill 1 5,000 t 8 X 54 tph
Finish Mill 2 Finish Mill 3 Finish Mill 4 2 X 72 tph
( 55 tph) OW Cement
(87 tph ) ( 87 tph ) ( 114 tph )
(3400 cm2/gr) Type OPC Cement Silo 8
(3170 cm2/g) (3170 cm2/g) (3170 cm2/g)
Type V 5,000 t
60 tph Type SNI
80 t/h 80 t/h 100 t/h GU
3450 cm2/g
3450 cm2/gr 3450 cm2/gr 3450 cm2/gr Cement Silo 9
10,000 t
Cement Silo 10
Critical 18,000 t
Bottleneck Equipment
condition 48
6.1 Mass Flow – N2 (Clinker Production)
Quarry (extraction):
4 x dump truck 777 Critical
2 X Wheel Loader Bottleneck Equipment
1 X Front Shovel condition
1 X Excavator
2 X Track Drill Clinker
Clinker Silo
2 x Bulldozer
Storage
1 X Truck Mixer 75,000 t
Correctives
Clinker Steel Bin
Alternatives materials Hammer crusher LS (342 tph)
(Al2O3, Fe2O3 ) 250 tph
LS 1500 t/h
CaO – SiO3 Cooler
Auxiliaries for N1 & N2
Kiln 4 IDO pump IDO tank

560 tph 7200 lph 4000 kl
Storage Hall
Shale/Clay
3 x 6,000 t
Dust Silo
Silica 1500 t
2 x 6,000 t Coal Mill Coal Recl. NAR
Limestone 50 t/h 30.000 t
Blending Silos
2 x 45,000 t 2 x 20,000 t
Iron Ore/Copper Slag AFR
Oil Sludge, CPO,
10,000 t etc..
Vertical mill
700 tph dry
49
6.1 Mass Flow – N2 (Cement Production)
Critical
Bottleneck Equipment
Additive Supply condition
Limestone
Clinker Gypsum Fly Ash Pozzolan Bag making plant :
Filler
1 X bottomer machine
113 bags/min
Cement Silo 11
18,000 t
Ball mill Packing machine :
8 Rotary Packer X 110 tph
Pregrinding 2 X (210 t/h)
(3200 cm2/g)
2 X (215 t/h)
2 X 160 t/h (198+194) t/h Bulk by truck
4100 cm2/g
Cement Silo 12 4 spout X 72 tph
18,000 t
2 Packers (Automatic) linked to Palletizer Machine

2 Packer dedicated for container
4 Packers (Manual)
50
6.1 Mass Flow
 Key issues:
 Limited capacity of Clinker, MIC, and Gypsum for Finish Mill-N1 (need
additional transport from new Clinker Storage instead of existing Belt
Conveyor transport for both MIC and Clinker)
 Limited Clinker Capacity to support Clinker Consumption Volume as an
impact of high market demand
 Need of packer machine modification due to higher Blaine of Cement
Product
 Limited Drying Capacity for both Coal Mill N1 and N2 and won’t be able to
increase LRC Consumption >70%
 Pregrinding Machine needs to be maintain to be operated by 4 rollers
 Reactivation of Finish Mill 1 scheduled October 2012
51
 Key issues:
 Fleet capacity is not match with crusher capacity.
Mining Situation Distance to Remarks
Location hopper
(meter)
Pasir Asem Limestone quarry

Mining level is close to final mining level (100 msl)
Timur
Pasir Asem Limestone quarry

Pasir Asem Barat contains of marly limestone, which have high SO3
Barat
Nar 2 : 776 Limestone quarry

Pasir Koja Pasir Koja contains of medium – high MgO
Nar 1 : 1776
Pasir Rangkok Nar 2 : 1382 Limestone quarry

Pasir Rangkok Susu is contain of high SO3
Susu Nar 1 : 2382

Leuweung Datar At this time LD is main area for high grade reserve (high CaO and Low SO3)
Nar 1 : 2180

Pasir Ojan Contain medium CaO and medium SO3
Nar 1 : 2482
Pasir Tangkil, High SiO2, low Al2O3 content at the developed area will impact to quality. High SO3 Shale quarry
Crusher :1100
(Gray Shale) content will impact to SO2 emissions.
Pasir Tangkil High SiO2, low Al2O3 content at the developed area will impact to quality. Low SO3 (as Shale quarry
Crusher:1267
(Brown Shale) mixing material for Gray Shale to minimize impact to SO2 emission)
Main operational measures

• Propose CAPEX for Heavy Equipment.
• Develop new area Pasir Koja for high grade reserve.
52
 Main capex projects
 Heavy equipment :
2011 2012 2013 2014 2015 2016
Heavy equipment
Budget (IDR) Remarks Budget (IDR) Remarks Budget (IDR) Remarks Budget (IDR) Remarks Budget (IDR) Remarks Budget (IDR) Remarks
Hauling equipment
Quarry Quarry Quarry
Dump truck 773E/F 6.8 bio 9 bio 9 bio
Operational Operational Operational
Quarry Quarry
Dump truck 777D/F 11.01 bio 11.7 bio
Operational Operational
Loading equipment
Quarry
Wheel Loader 992K 15.3 bio
Operational
Quarry Quarry
Wheel Loader 990H 12.9 bio 13.4 bio
Operational Operational
Excavator 349D + rock Quarry
4.6 bio
breaker Development
Quarry Quarry
Dozer D 10 11.2 bio 13 bio
Development Development
Drilling equipment
Quarry
Rock Drill DP 1100i 5 bio
Operational
Quarry
Rotary Drill 7 bio
Operational
4 bio
RD F9LF Q Operational
Total 19.9 bio 28.96 bio 27.24 bio 23 bio 13 bio 22 bio
Replacement
Additional/Rationalization
53
6.3 Raw Material Preparation
 Key issues:
 Increase flyash consumption and feeding in crusher.

 Installation of New BC and Hopper For Fly Ash Facility
54
6.4 Raw Meal Preparation
 Key issues:
 Mill performance sensitive to moist and sticky material
 False air at Raw Mill N1 and N2 system
 Metal particle found and pinion gear are scratch and Temperature at thrust
bearing also very high since last 6 months
 364-SR1 Raw Mill VSD was obsolete and the spare parts difficult to order
due to availability.
 Improve wet weather issues (liners, bin and chute design)
 NR.363-MD1 Repair / Replace bearings for 2 Maag gearbox
 Replacement N2 364-SR1 Raw Mil Separator Variable Speed Drive
55
6.5 Fuel Preparation
 Key issues:
 Coal Mill N1 have high dust load causing NCV drop
 Limited drying capacity Coal Mill N1 & N2, will not support coal with high moisture
(>35%)
 Limited Pfister feeder (Coal dozing system) capacity both in N1 & N2 because of
utilizing LRC up to 70%
 Need to ensure consistency supplied low rank coal quality, especially in Calorific
Value (CV) to meet target 70% in coal proportion
 Need to maintain stock coal availability in accordance with mix proportion

 Maintain coal mixing control in reclaimer area by enhancing coal tripper reliability
 Improve LRC quality control to ensure if Coal drying and dozing system are still able
to handle amount of the coal
 Propose to reactivate gypsum unloading system for coal unloading facility to improve
coal mixing management
 Propose to review rejection limit of coal quality

 Dust Trap Coal Mill N1
56
Volum es, BDP Summary of key issues
13,000 4,150
12,950  Clinker transport equipment is operated at its
4,100
12,900 maximum capacity in N2, need to be upgraded
12,850 4,050 (apron conveyor)
12,800
kt clin
t/day
4,000  NAR2 Clinker temperature problem

12,750
12,700 3,950  ID Fans are operated at it’s maximum capacity
12,650
3,900
and frequently have high vibration problem
12,600
12,550 3,850
 Kiln Tyre cracked caused additional 10 days
2010 2011 2012 2013 2014 2015 2016 during Kiln Overhaul N2 in 2012
Y ear -end B DP as per FRP Cl i nk er pr oduc t i on v ol ume St andar d c l i nk er c apac i t y v ol ume

Equipm ent Efficiency
91%
 Clarify specs and place order for N2 ID Fan in
90% 2012
89%
 Propose Auto Balance for CAPEX 2013
88%
87%  Upgrade clinker cooler by prioritizing the
86% installation of fixed inlet grate cooler
85%
84%  Kiln Tyre and shell replacement for Kiln N2
83% During Overhaul in 2013
82%
81%  Clinker Transport N2 total replacement
2010 2011 2012 2013 2014 2015 2016
Net availabilit y index - kilns Gross availabilit y index - kilns

Net OEE - kilns Gross OEE - kilns 57
 Repair and upgrade of clinker transport Kiln N2
 Improve process to increase kiln feed
 Reduce false air
 Replacement kiln shell and tyre for Kiln N2
 NR.464-KL1 Kiln Gear Reducer Replacement
 NR.474-FN2 Replace Shaft and Impeller for NAR2 EP Cooler Fan
 NR.473-HC1 Rotor & bearing
 Fixed Inlet Grate Cooler 474 GQ1
 Auto Balance for CAPEX 2013
58
6.7 Cement Grinding/Blending
Key issues
 Pre-grinding Machine needs to be
maintained to be operated with 4 rollers
to maintain production rate
 Starting October 2012 FM1 will be
reactivated as an impact of demand
increase
 Starting in mid 2012, Fly Ash
consumption will be optimized to reduce
clinker factor (target 74%)
 Lower production rate FM6 NAR2
compared to FM5
 Bucket Elevator for Gypsum &
Limestone plug up
 Narogong grinding capacity using below
assumption:
 Vibrating Screen installation in
FM6 causes capacity increase
similar to FM5
 FM1 Reactivation Starting October
2012
59
6.7 Cement Grinding/Blending
 Usage grinding aid to avoid ball coating, reduce power consumption and
increase grinding capacity
 Flyash Usage in N2 to reduce clinker factor
 Vibrating Screen installation in FM6
 FM1 Reactivation and FM2,3,and 4 Improvement
 Convert BE to BC MIC feeding Facilities for FM N2
 NR.545-RM1 Repair Pregrinder reducer
60
6.8 Shipping Station
 Key issues
 High Blaine Cement Product causes negative impact of packing Cement
Bag Process

 Need study to packer modification
61
7. Auxiliaries and Infrastructure
7.1 Power Distribution & Motor Control Centers

7.2 Automation & Instrumentation
7.3 Large Drives
7.4 Infrastructure

7.1 Power Distribution & Motor Control Centers
 Key issues:
 The lifetime of GIS is 16 years and haven't yet maintained. Hitachi proposes
the maintenance must be done every 12 years. If the GIS fail, it will cause
shutdown plant NAR 2 for 1 month for maintenance.
 Part contact moving at OLTC OTR A & OTR B was in bad condition must be
replaced next year and no spare part available at warehouse. if no spare
available will cause stop operation for 6 month (spare part time delivery)
 The condition of oil in main tank transformer is in bad condition, to avoid
further failure of OTR 3 since 1979 years have not been replaced
 Service Gas Insulation Switch (GIS) (87k USD: improve power availability )
 Purchase OTR3 transformer due to lifetime more than 40 years (600 K USD
: to avoid further failure and improve availability )
 Replace MCC FM3 NAR1 (200 K USD : to avoid further failure and improve
availability )
63
Holcim Indonesia 7. Auxiliaries and Infrastructure Narogong PMP 2012-2016
7.2 Automation & Instrumentation
 Key issues:
 All Weigh Feeder FM NAR 2 and Raw Mill feed NAR 2 are obselete, the supplier stated the
sparepart availibility will not produce since March 2012. Schenck suggest to upgrade Weigh Feeder
from Multicont to Disocont version.
 Limestone Belt Weigher and Shale Belt Weigher NAR 1 are mismatch between mechanic and
control system, mechanic is Ramsey but control system is Schenck. By harmonizing between
mechanic and control will improve accuracy of Belt Weigher and reducing correction when stock
balance measurement.
 No weighing system at output product of Shredder. No valid actual rate of shredder product.
 NAR1 plant automation UPS was not industrial standard type and has short back up time (less than
30 minutes). Impact : all parameter and PID need to be reset if CPU power off.
 No redundant function for NAR 1 plant automation for Kiln and Cooler area. When communication
lost will triggered Kiln stopped (occurred 3 times in 2012)

 Replace New Version Weighing system Control include mechanic (180.000 Euro : deviation
reduction, reliability and good quality dozing)
 Renew license and upgrade NAR 1 automation
 Replacing BW include control system ver.DISOCONT (40.000 Euro: improve accuracy and
reliability equipment)
 Install BW at output product of Shredder NAR 2 (20.000 Euro: actual rate product of shredder,
omitted manual input rate of shredder product into TIS)
 Replace industrial UPS . (70 K USD : avoid future blackout probability and maintain availability of
control system)
 Install redundant NAR1 plant automation (Kiln, Cooler and Coal Mill) (131K USD : maintain
availability of control system )
 Dispatch plant automation NAR2 project in 2014 (1.9 Mio USD) and NAR 1 in 2015
 Replace NAR2 Plant automation in 2015 (3.8 Mio USD : Maintain plant automation availability) 64

7.3 Large Drives
 Key issues:
 ID Fan 444 FN1 and 444 FN2 VSD have been obsolete since 2002 and no ability to
handle power flickering will trigger kiln stopped. VSD spare part are not available in
the market.
 NAR2 EP Cooler Fan 474-FN2 Variable Speed Drive ( SIMOVERT) where existing
was obsolete. No spare part available.
 Existing DC drive 542-MD1 was obsolete and had decrease the performance due to
life time more than 20 years
 There are not spare motor for finish mill NAR2 main drive (4900 kW). The existing
motor was detected broken on shaft and needed to repair on the next recondition. It
will take 2 weeks to repair and it is not possible to stop finish mill for 2 weeks.
 No back up motor for both NAR1 and NAR2 kiln.
 Replacement of Variable Frequency Drive ID Fan 444-FN1 and 444FN2 (326k USD;
reduction maintenance costs, improving reliability and availability equipment, and to
increase kiln running hours, extended MTBF)
 Replace of Variable speed Drive 474 FN2 ( 160k USD reduction maintenance costs,
improving reliability and availability equipment, and to increase kiln running hours,
extended MTBF)
 Replacement DC drive for 542-MD1 to improve reliability, availability equipment and
increase finish mill NAR1 running hours
 Replace spare motor for main drive Finish Mill NAR2 to improve reliability, availability
finish mill NAR 2 65
7.4 Infrastructure
 Key issues:
 Water management: corrosive pipes and no flow meter to measure water
consumption ( refer to HGRS water protocol and government regulation)
 Corrosive at NAR1 cooler structure and feed bin
 No maintenance facility at multi cyclone
 Some buildings with Asbestos roof is still being health issue
 No facility Reservoir pump for preventive maintenance
 Underground pipe was found corroded and leak. No identification/sign in the line.
 No identification and signage on underground cable
 Repainting pipes and flow meter installation (576k USD: improve lifetime pipes,
controlling water plant flow)
 Replace new structure for NAR1 cooler structure and feed bin include painting (70k
USD: improve lifetime structure)
 Install platform at multi cyclone (38k USD: facility for maintenance activity, reduce
accident when there is maintenance activity)
 Replace asbestos roof with Sic alum partially for all building (54k USD: meet health
regulation (health issue))
 Install platform at reservoir pump (98k USD: repair leakage reservoir, facility for
preventive maintenance and improve plant water availability)
 Review and revise all drawing and signage for underground pipes and cable
66
8. Maintenance and Equipment Reliability
8.1 Overall Plant Condition

8.2 Main Overhaul and Replacement CAPEX Projects
8.3 Maintenance Management
8.4 Maintenance Projection

1
2
3
KPI Hardware
Housekeeping
Risk evaluation
<5%
> 30 %
Electrical
Corrosion
5 to 30 %
Wear Parts
Mechanical
Control Systems
Group Target of 90%

Discrepancy from desired condition:
MTBF vs. Group Target*

Net Availability Index vs.
roller mills and roller press as finish grinding
Please rate equipment system (1, 2 or 3)
*Kiln MTBF: Target 400h for wet process; 300h for dry process
*Mill MTBF: Target 125 h for ball mills; 50h for VRM, horizontal
Year of comissionning or
major refurbishment
Raw Material Extraction
x
x
x
x
x
x
x
x
Mobile Equipment 2001
Raw Material Preparation
2
3
3
3
3
2
3
3
Crusher 1 System (CR L/S NAR1) 2001
Holcim Indonesia
2
3
3
3
3
2
3
2
Crusher 2 System (CR L/S NAR2) 1992
2
3
3
3
3
2
3
2
Crusher 3 System (CR Shale) 1992
2
3
3
3
3
2
3
2
Crusher 4 System (CR Silica) 1998
x
x
x
x
x
x
x
x
Crusher 5 System
x
x
x
x
x
x
x
x
Crusher 6 System
x
x
x
x
x
x
x
x
Crusher 7 System
x
x
x
x
x
x
x
x
Crusher 8 System
x
x
x
x
x
x
x
x
Crusher 9 System
Raw Meal Preparation
3
3
3
2
3
3
3
2
Raw Mill 1 System (RAW MILL NAR1) 2012
3
3
3
3
3
3
3
3
Raw Mill 2 System (RAW MILL NAR2) 2012
x
x
x
x
x
x
x
x
Raw Mill 3 System
x
x
x
x
x
x
x
x
Raw Mill 4 System
x
x
x
x
x
x
x
x
Raw Mill 5 System
x
x
x
x
x
x
x
x
Raw Mill 6 System
x
x
x
x
x
x
x
x
Raw Mill 7 System
3 Clinker Production
3
3
3
3
3
3
2
Kiln 1 System (KILN NAR1) 2012

2
3
3
3
3
3
3
2
Kiln 2 System (KILN NAR2) 2012

x
x
x
x
x
x
x
x
8.1 Overall Plant Condition
Kiln 3 System
x
x
x
x
x
x
x
x
Kiln 4 System
x
x
x
x
x
x
x
x
Kiln 5 System
x
x
x
x
x
x
x
x
Kiln 6 System
Cement Grinding
2
3
3
2
3
2
3
3
Mill 1 System (FM2 NAR1) 1995

2
3
3
2
3
3
3
3

2
3
3
3
3
2
3
2

2
3
3
2
2
3
3
2

2
3
3
2
2
2
3
2
8. Maintenance and Equipment Reliability

x
x
x
x
x
x
x
x
Mill 6 System
x
x
x
x
x
x
x
x
Mill 7 System
x
x
x
x
x
x
x
x
Mill 8 System
x
x
x
x
x
x
x
x
Mill 9 System
Auxiliary Equipment
x
x
x
3
3
3
2
3
Dedusting System 1998

x
x
x
3
3
3
3
2
Plant Air System 1998

x
x
x
3
3
3
3
3
Water System 1998

Belt Conveyors, Bucket Elevators and
x
x
x
3
3
3
2
2
other Transport Equipment

Foundations and Structures
x
x
x
x
x
x
3
3
1998
(Hall Storages, etc.)
Other Electrical Systems and Equipment

High / Medium Voltage Power Distribution &
x
x
x
3
3
2
3
3
Transformers
Low Voltage Power Distribution and Motor Control
x
x
x
3
3
3
3
3
Centers
x
x
x
3
3
3
3
3
Lighting & Power Sockets

x
x
x
x
x
x
3
2
Installation, Grounding & Lightning Protection

68
Narogong PMP 2012-2016
x
x
x
x
x
3
3
3
Fire Detection & Fire Barriers

Electrical Health & Safety, Local Isolator
x
x
x
x
x
x
x
Switches
 Key issues
 Tyre crack on Kiln NAR 2
 Progressive Kiln Shell thickness reduction on Kiln NAR2
 NAR 1 UPS control system was obselete will influence availibilty of plant
control system.
 Frequently Kiln stop due to ID Fan flickering contributes to Kiln stopped
 N2 ID fan Cascade Simadyn Drive was obsolete, no spare part and
support available.
 Clinker Transport NAR2 was worn out.
 Cooler EP motor is indicating short in turn to turn winding. ( need to
prepare spare immediately)
 Broken and worn out link, rail and harrow in Limestone Reclaimer NAR1
 Finish Mill 3 liner was worn out.
 Air Conditioning in Some Electrical Room isn’t working properly.
 High vibration on NAR2 Pregrinder during out side clinker feeding impact
to Rocker arm, bearing rocker arm, tension rod, base plate, bolt, roller
bearing are frequently occur and reduce mill MTBF.
 Some variable speed drive is needed to be replaced due to obsolete.
 Corrosion in some structure such as Silica bin, Shale transport, etc.
 Coal Stack NAR2 thickness was under requirement and need to be
replaced
69
Holcim Indonesia 8. Maintenance and Equipment Reliability Narogong PMP 2012-2016
 Main overhaul projects

 Replace kiln tyre and shell.
 Replace industrial UPS NAR1
 Repair and replace LS NAR1 Reclaimer harrow, link and rail.
 Painting and replace corrosive structure at cooler and feed bin area NAR1
 Replace Coal Stack NAR 2 Partially.
 Replace DC Drive booster fan 473-FN7
 Additional EP/BF and fan upgrade RM NAR1
CAPEX projects (incl. costs & benefits)

 Replacement new VSD for 474 ID fan NAR2 (160k USD reduction maintenance
costs, improving reliability and availability equipment, and to increase kiln running
hours, extended MTBF)
 Improvement of Preheater ID Fan NAR2 (ILC & SLC) (impeller and Drive) (45 Bio,
Increase capacity & reduce stop)
 NAR2 Preheater Auto-balancing system (3 Bio, Increase availability and MTBF)
 NAR1 Preheater Auto-balancing system (1.5 Bio, Increase availability and MTBF)
 NAR2 Install Fix inlet cooler (7.5 Bio, Increase availability and MTBF)
 Clinker transport replacement (5.5 Bio, Increase availability and MTBF)
 Upgrade L64-BF1 explosion vent with Thorvesten Vent (1.5 Bio, Safety reason)
70
Advanced Elements
18. Equipment 19. Third Party 20. Maintenance Cost

17. RCM / FMEA / RbM
Replacement Strategy Services Management Report & Analysis
1 2 2 2
13. Preventive 14. Equipment History 15. Computerized 16. Root Cause
Maintenance Level #2 System Maintenance System Analysis
2 2 2 2
9. Maintenance
10. Maintenance KPI 12. Standards &
Master Schedule/ 11. Bill of Materials
and Reports Specifications
Weekly / Daily Plan
2 2 2 2
5. Critical Spares &

6. Preventive 8. Shutdown
Warehouse 7. Work Order System
Maintenance Level #1 Management
Management
2 2 2 2
2. Maintenance
1. Maintenance 3. Asset Numbering
Training & 4. Critical Equipment
Organization System (HAC)
Requirements
2 2 2 2
Foundation Elements
71
 Block 17: RCM/FMEA/ RbM (Yellow)
 Develop regular schedule for RCM/FMEA/RbM analysis as a part of plant culture
 Dedicated engineer to focus in developing and maintaining RCM/FMEA/RbM
 Review and implement PMR in all area (Example : Kiln and Dispatch)
72
Summary of key issues

 Lack of man power must be fulfilled
related to Tuban Project and operation
requirement
 Low availability in 2011 and 2013 was
caused by long overhaul in NAR2.
 Maintenance data was taken from
Finplan 2012-2016. Mostly increasing
each year was inflated.
 Long overhaul NAR 2 in 2013 (replace
tyre and shell)
 Decreasing quality, performance and
safety from contractor/ third party
 High market demand impact to spare
part, Preventive Maintenance strategy in
FM and dispatch area NAR2
73
 Rapid increase of HIL business growth and
dynamic of organization development push
us tp have a better and fast people
development strategy through talent
assessment and IDP program for internal
talent and training based on skill matrix and
TNA gaps, define internal maintenance career
path to support people development plan for
Tuban organization.
 Review equipment de-bottlenecking due to
capacity increase and efficiency increase in
Clinker Production system.
 Improve maintenance strategy through RCM
(PM, PdM, RBM, FMEA), better planning &
scheduling, better execution ,improve on
quality of workmanship, discipline of peoples
and better supervision.
 Improve contractor management (optimize
utilization, regular KPI assessment, etc) as
well as shut down management
 Increase team awareness of Maintenance
Key performance indicator by Fostering
Maintenance Excellence Program (include
cost, PMR, MTBF, NAI, house keeping, visual
management etc)
74
9. Quality
9.1 Customer Satisfaction

9.2 Quality in Manufacturing
9.2.1 Compressive Mortar Strength
9.2.2 Coefficient of Variation of 28 d Mortar Strength
9.3 Quality Management
9.4 Quality Control
9.4.1 General
9.4.2 AFR

2009 2010 2011

Compressive strength 0 0 1
0
Product Quality
Setting behaviour 0 0
Compatibility with concrete admixtures 0 0 0
Colour 0 0 0
Bleeding 0 0 0
Lump formation/flow behaviour 1 16 17
Other, please specify 9 0 0
Product availability 9 230 217
Logistics
Service/
Wrong product/contaminated product 1 0 3

Defective bags 6 2 42
Delayed reply 0 0 0
Total 26 248 282
76
Holcim Indonesia 9. Quality Narogong PMP 2012-2016
 Key issues
 Low CSI score (storage durability)
 Lump formation in specific area (Batam)
 To identify real storage durability HIL against competitors
 To review storage durability
 To find suitable packaging for Batam market
77
9.2 Quality in Manufacturing
(Please specify the major issues and corresponding measures related to clinker reactivity, impact of AFR,
cement grinding, MIC variability, fineness issues, CKD addition, etc.)
 Key issues
 Burning conditions influenced by unstable AF feeding has negative impact on clinker quality on N1 and N2
 Shale and limestone need additional controlling to maintain VOC and SO2 level
 Kiln feed homogeneity in Nar1
 Challenge with higher portion Low rank coal (70%).
 OWC properties cannot meet some customer requirement although comply with API standard.
 Mortar GU strength reduction with increasing MIC, and limited reactive MIC available.
 Short setting time in GU compare to SLA requirement
 Fluctuation of mix of MIC due to only one WF is used for pozzolan and limestone.
 Some waste containing high minor element/hazard element (P2O5,etc) has negative impact in quality
 Stabilizing process and upgrade solid AF feeding facility
 Shale quarry mapping based on pyrite analysis.
 Develop VOC analysis on raw material and alternative raw material
 Improve operation of blending silo extraction (blower, gate, etc) in Nar1
 Strict control of blending and proportioning of coal
 Continue OWC slurry performance improvement.
 Find reactive MIC to increase MIC proportion in GU.
 Increase reactivity of clinker (C3S, microscopy, etc)
 Develop capability analysis of gypsum dehydration
 Develop burnability model for new source raw material and alternative raw material
 Strict control of feeding rate AF/AR to comply the max limit.
 Nar 1 Feeding hopper and solid AFR belt conveyor from ground level to 6th floor preheater (2014)
 Nar 2 Solid facility installation to SLC (2013)
 Nar 2 Install new pozzolan bin, weight feeder & transport (2013)
 Pyrolisis for VOC measurement (2013)
 Pressurized Consistometer for OWC testing (2012)
 TGA for gypsum dehydration analysis (2013)
 Lab Mill (2013)
 Furnace for burnability test (2012)
78
9.2.1 Compressive Mortar Strength
(Show five products per graph and sheet; maximum ten products in two slides)
Key issues
Compressive Mortar Strength 28d
50
45
 How to meet strength requirement in GU
40 with increased MIC (CF 2010 : 78.48%,
35 CF 2011 : 76.42%)
30
MPa
25
20
15
10
5
0
1Q/2010 2Q/2010 3Q/2010 4Q/2010 1Q/2011 2Q/2011 3Q/2011 4Q/2011
ASTM 1157 GU ASTM C150 I SNI Type I ASTM C150 V
Compressive Mortar Strength 2 or 3d

(please specify)
30
25
20
MPa
15
10
0
1Q/2010 2Q/2010 3Q/2010 4Q/2010 1Q/2011 2Q/2011 3Q/2011 4Q/2011

79
9.2.2 Coefficient of Variation of 28 d Mortar Strength
(Show five products per graph and sheet; maximum ten products in two slides)
Key issues
 Covar > 3 in GU due to variation in MIC

Coefficient of Variation of 28d Mortar Strength
proportion
7%
6%  Covar >3 in OPC and RFP due to too

5% many transition period when changing
4% product
3%
2%
1%
0%
1Q/2010 2Q/2010 3Q/2010 4Q/2010 1Q/2011 2Q/2011 3Q/2011 4Q/2011
80
9.3 Quality Management
(Please indicate major activities and changes related to ISO 9000, product certification, interfaces
with other functions, improvement programs, etc.)
 Key issues
 Extended scope ISO 17025 for AFR lab,Chemical lab,and Physical lab
 ISO 17025 surveillance for HIL Lab (AFR lab, chemical lab and physical
lab).
81
9.4 Quality Control
9.4.1 Quality Control - General
(Please indicate major activities and issues related to quality control, e.g. sampling, testing, equipment,
automation)
 Key issues
 Current XRFs have been operated more than 14 years with reduced
performance. (XRF 8680 in 1996, XRF 8410 in 1994), more sample
analysis need to be done ( fly ash analysis,pozzolan analysis, etc)
 Current PLC instrument of Robolab have already been obsolete
 Some of samplers in raw mill, finish mills and ex silo need to equipped with
mixer and returned blower to become continuous samplers to get more
representative samples)
 Existing QCX for Window 2000 absolute since June 2011
 More strict control of raw material,and MIC composition
 Improve samplers (raw mill, cement mill, and dispatch)
 CAPEX for new XRF (2015)
 Purchase new PLC for Robolab (Simatic) in 2011/2012 (2012)
 Update QCX software and OS (2012)
82
9.4.2 Quality Control - AFR
(Please indicate major activities and issues related to AFR quality control at the cement plant)
 Key issues
 In coming, prospecting and in process AFR is often different.
 Feed scheduling and planning is not well developed.
 Need improvement of AR management in related the impact on
environmental issues (VOC)
 Close communication amongst parties (lab, geocycle, prod) and improve
control to minimize effect to process.
 Monitoring of AFR effect to Environmental and operation
 Conduct training for AFR personnel to improve their knowledge & skills
especially about waste/hazardous waste, sampling and cement process,
VOC source.
 Establish in process AR quality controlling system
 VOC Analyzer (pyrolisis system) is highly needed due to VOC issues in
raw material and AFR (2013)
CAPEX project (extract and reference to CAPEX list)
Project name:
Project number/reference:
Cost (in 000 RC):
Year of commissioning:
83
10. Plant Environmental Profile
10.1 PEP* Indicators

10.2 Legal Requirements
10.3 Local ELV** Compliance
10.4 Dust, NOx, SO2 Emissions
10.5 CEM*** Equipment Availability
10.6 CO2 Emissions
*Plant Environmental Profile (PEP) **Emission Limit Value (ELV)

***Continuous Emission Monitoring (CEM)
10.1 PEP Indicators
Plant Environmental Profile
Key issues
100%
90%
 Environmental performance which need
80% improvement :
70%
60%  Reduce Dust & Gaseous generation
50%  Fugitive dust management
40%
30%  Water & Waste Water management
20%  AFR utilization (TSR)
10%
0%  CO2 reduction achievement
Enviro nmental Ho lcim Enviro nmental Overall P lant  MIC utilization
Regulato ry Enviro nmental P erfo rmance Enviro nmental
Co mpliance Co mpliance P erfo rmance  Energy efficiency
Indicato r
A ct ual 2010 A ct ual 2011 For ecast 2012 T ar get 2013 T ar get 2014 T ar get 2015 T ar get 2016
85
Holcim Indonesia 10. Plant Environmental Profile Narogong PMP 2012-2016
10.1 PEP Indicators
 Mixing shale and controlling AR feeding to stabilizes VOC
 Feed slaked lime to reduce SO2 emission.
 Reduce fugitive dust, especially as result from internal transport.
 Improve water & waste water management
 Increase AFR utilization (TSR) as per geocycle plan
 Reduce clinker factor with more reactive MIC
 Continue campaign to reduce electrical energy consumption.

 None
86
10.2 Legal Requirements
 Key issues:
 Water Protocol

 Water consumption monitoring & efficiency
 Redrawing plant water and flowmeter installation project
87
10.3 Local Environmental Compliance
Key issues
 VOC value often exceed limit
 Critical value of SO2
 Main drainage outlet water contaminated
with coal
 Water consumption monitoring
88
10.3 Local Environmental Compliance
 Mixing shale and controlling AR feeding to stabilize VOC
 Feeding slaked lime to reduce SO2 emission
 Design separation between sanitary/waste water and drainage system
 Install additional settling pond & drainage
 Maintain coal receiving & storage management

 Installation of Sanitary Waste Water Treatment Plant phase 2 & 3
 Redrawing plant water and flowmeter installation project
89
Key issues
 Critical value SO2 emission (sometimes high at
direct operation)
90
 Feeding slaked lime

 none
91
10.5 CEM Equipment Availability
(Target on the Group Operational Roadmap under the SEP mindset; Reference: Holcim EMR Standard 11
Availability > 90% (dust, SO2, NOx, VOC) to be achieved by end of 2009; target value: 95%)
CEM Equipment Availability / Kiln 1 Key issues

100%
 CEM availability will beyond the target this year
80%
while maintain intensively
60%
40%
20%
0%
CEM Equipment CEM Equipment CEM Equipment CEM Equipment
Availability - SO2 Availability - NOx Availability - Dust Availability - VOC
Actual 2010 Actual 2011 Forecast 2012

Target 2013 Target 2014 Target 2015
Target 2016 Target > 90%
CEM Equipment Availability / Kiln 2

100%
80%
60%
40%
20%
0%
CEM Equipment CEM Equipment CEM Equipment CEM Equipment
Availability - SO2 Availability - NOx Availability - Dust Availability - VOC
Actual 2010 Actual 2011 Forecast 2012

Target 2013 Target 2014 Target 2015
Target 2016 Target > 90%
92
10.5 CEM Equipment Availability
(Target on the Group Operational Roadmap under the SEP mindset; Reference: Holcim EMR Standard 11
Availability > 90% (dust, SO2, NOx, VOC) to be achieved by end of 2009; target value: 95%)

 Maintain CEM and ensure part availability
 Improve Communication & early notification when CEM down
Main CAPEX projects (incl. costs & benefits)

 none
93
10.6 CO2 Emissions
Key issues
 Relatively high heat consumption
 MIC utilization vs Cement Quality
 Limited AF usage due to kiln is not
originally design for maximum
alternative fuel
94
10.6 CO2 Emissions
 Improve clinker reactivity to allow maximum usage of limestone filler & MIC at desired
cement quality.
 Optimize AFR usage by improving handling and dosing facility
 Reduce clinker factor with more reactive MIC

 See AFR capex …
95
11. Plant Organization
11.1 Current Organizational Structure

11.2 Organizational Structure in Case of Change
11.3 FTE Development
11.4 Age Distribution

11.1 Current Organizational Structure
Key issues
 …
97
Holcim Indonesia 11. Plant Organization Narogong PMP 2012-2016
11.2 Organizational Structure in Case of Change
(Please indicate, if an organizational change is to be expected within the next five years)
* Line function: primary business activity of the

organization. Line functions are directly related with the
objectives of the organization and they directly affect
income. Plant Manager Example
* Support function: secondary business activity that
Support functions*
supports the line functions to achieve the company
objectives Assistant
HR & Admin. OH & S Coordinator
Plant Controller Environment Coordinator
CAPEX Project Manager Plant AFR Coordinator
Line functions*
Process Performance
Production Manager Maintenance Manager Quality Manager
Engineer
Key issues
 …
98
11.3 FTE Development
Key issues
 …
99
11.4 Age Distribution
Key issues
 …
100
12. Production Cost Projection
12.1 Clinker Cost Projection

12.2 Cement Grinding/Blending Cost Projection
12.3 Production Cost Projection
12.4 Cement Processed Cost Projection

12.1 Clinker Cost Projection
Up to and including clinker production
700,000
600,000
500,000
400,000
RC/t cem
282,664.3 296,873.7
300,000 262,933.8 271,255.2
241,774.3 65,125.8
208,248.8 216,600.7 54,805.9 57,952.6 61,766.9
200,000 56,331.0
56,471.0 57,689.0
100,000 208,127.9 213,302.6 220,897.4 231,747.9

151,777.8 158,911.7 185,443.3
0
2010 2011 2012 2013 2014 2015 2016
Fixed Cash Co st [RC/t cem] Cash Co st [RC/t cem] - Up to and including clinker pro ductio n
Key issues
 Variable cost increase mainly driven by increasing price of coal, and electricity.
 Electrical Cost significant increase 10.2% for 2013, 6.3% for 2013, 7.5% for 2014 , 7.5% for 2015 and 4.5 for
2016
 Thermal Cost significant increase 12.2% for 2013, 3% for 2014, and for 2015 and 4.9% for 2016
 Iron sand increase 11% for 2013 , 7.9% for 2013, 5.3 % for 2014, 5. 4 % for 2015 and 5.7 % for 2016
 Silica sand increase 6.5% for 2012, 5.5% for 2014, 4.3 % for 2015 and 5.7 % for 2016
 High fixed cost in 2013 is caused by major Kiln O/H (kiln shell ).
102
Holcim Indonesia 12. Production Cost Projection Narogong PMP 2012-2016
12.2 Cement Grinding/Blending Cost Projection
250,000 Cement Grinding/Blending
200,000
150,000
RC/t cem
93,383.9 96,721.2
100,000 79,990.4 86,285.8
67,060.5 65,998.8 69,021.0 25,191.3 25,203.9
22,618.6 22,778.8
25,997.8 20,363.9 18,718.7
50,000
63,507.0 68,192.6 71,517.4
45,634.9 50,302.3 57,371.9
41,062.7
0
2010 2011 2012 2013 2014 2015 2016
Variable Cash Co st [RC/t cem] Fixed Cash Co st [RC/t cem]
Key issues
 Variable cost increase mainly driven by increasing price of electricity and fly ash.
 Clinker factor 81.9% for 2012, 80.25% for 2013, 79.97% for 2014, 79.96% for 2015,
80.33% for 2016
 Unit price Gypsum increase 6.75%, fly ash increase 5.6% for 2013-2016.
 Unit price pozzolana increase 6.5% for 2013-2016

103
M: Maintenance Production cost / History and projection of 15A extract
RC/t cem Actual 2010 Actual 2011 Forecast 2012 Target 2013 Target 2014 Target 2015 Target 2016
Variable Cash Cost
Raw Materials 23,287.97 22,219.98 23,738.57 30,044.44 34,695.41 36,606.12 38,624.51
Fuels/Thermal Energy (Kiln) 84,134.09 92,005.32 116,542.23 128,706.88 129,276.45 132,146.43 137,988.38
Diesel/Gasoline 5,841.62 7,891.34 9,096.18 10,419.95 11,159.27 11,708.19 12,320.66
Electrical Energy Variable 58,333.72 59,154.59 59,070.64 65,490.07 70,039.86 75,306.38 79,615.46
Wear Parts M 9,653.89 9,059.79 8,438.11 9,064.45 9,415.62 10,049.10 10,502.06
Production and Distribution Material 2,573.46 5,062.26 8,199.86 8,595.96 8,782.93 9,511.82 9,703.94
Labor Expenses Own Variable 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Labor Expenses Maintenance Own Variable M 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Labor Expenses Subcontracted Variable 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Labor Expenses Maintenance Subcontracted Variable M 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Outsourced Activities 6,061.99 6,239.95 7,080.47 7,351.57 7,698.07 8,027.71 8,464.27
Mining Concessions and Royalties 2,953.81 2,913.40 3,579.53 5,826.44 5,741.95 5,734.16 6,045.99
Variable Cash Cost [RC/t cem] 192,840.55 204,546.64 235,745.59 265,499.77 276,809.57 289,089.91 303,265.27
Specific Fixed Cash Cost

Electrical Energy Fixed 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Labor Expenses Own Fixed 14,668.40 16,204.17 18,795.92 17,897.78 18,667.05 20,374.56 21,226.06
Labor Expenses Subcontracted Fixed 343.90 119.41 72.18 44.34 47.61 53.88 55.94
Labor Expenses Maintenance Own Fixed M 8,825.87 9,252.36 9,130.38 9,486.32 9,749.88 10,639.49 11,047.48
Labor Expenses Maintenance Subcontracted Fixed M 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other Personnel Expenses 3,187.99 4,382.13 4,952.90 6,299.03 6,460.87 6,979.67 7,146.93
Third Party Services 6,173.58 7,880.11 6,984.76 5,587.30 5,619.59 5,625.96 5,816.29
Third Party Services Maintenance M 11,740.46 10,147.25 8,046.60 7,904.65 9,088.46 10,123.71 10,590.63
Maintenance Material M 31,879.59 23,521.36 21,854.49 23,225.58 24,107.63 25,737.21 26,870.85
Other Cost Center Expenses 5,974.90 6,619.62 5,319.24 6,967.00 6,977.38 7,409.88 7,561.13
By-Products and Other Revenues -325.93 -73.55 -106.83 12.52 12.94 13.84 14.38
Fixed Cash Cost [RC/t cem] 82,468.78 78,052.87 75,049.65 77,424.51 80,731.42 86,958.21 90,329.70
Cash Cost [RC/t cem] - Total Production 275,309.32 282,599.51 310,795.23 342,924.28 357,540.99 376,048.13 393,594.97
Provisions [RC/t cem] - Total Production 16.35 299.35 9.56 0.00 0.00 0.00 0.00
Actual Cost [RC/t cem] - Total Production 275,325.68 282,898.86 310,804.80 342,924.28 357,540.99 376,048.13 393,594.97
Maintenance Cost [RC/t cem] 62,099.82 51,980.77 47,469.59 49,681.01 52,361.59 56,549.51 59,011.03
104
900,000 Production Cost Projection 500,000,000
800,000 450,000,000
700,000 400,000,000
350,000,000
600,000
300,000,000
500,000
000 RC
RC/t cem
376,048.13393,594.97 250,000,000
400,000 342,924.28357,540.99
310,795.23
275,309.32282,599.51 86,958.21 90,329.70 200,000,000
300,000 77,424.51 80,731.42
75,049.65 150,000,000
82,468.78 78,052.87
200,000 100,000,000
235,745.59265,499.77276,809.57289,089.91303,265.27
100,000 192,840.55204,546.64 50,000,000
0 0
2010 2011 2012 2013 2014 2015 2016
Variable Cash Cost [RC/t cem] Fixed Cash Cost [RC/t cem] Fixed Cash Cost [000 RC]
Key issues
 Increasing electricity price and coal price will be the main reason of our higher production
cost .
 Longer kiln shutdown will hit maintenance cost in 2013
105
12.4 Cement Processed Cost Projection
450,000 Cement Processed Cost Projection

400,000
393,594.97
350,000 376,048.13
342,924.28
300,000
310,804.80
250,000 275,325.68 282,898.86
RC/t cem
200,000
150,000 357,540.99
100,000
50,000
0
2010 2011 2012 2013 2014 2015 2016
Specific co st o f cement pro cessed 8.3.4.6 [RC/t cem]
Key issues
 Cement processed cost mainly affected by increasing electricity and coal price.
 Maintenance cost also contributed to this matter as the main driver in fixed production
cost.
106
13. Plant Layout
13.1 Current Plant Layout

13.2 Plant Layout in 5 Years
13.3 Future Plant Layout

13.1 Current Plant Layout
108
Holcim Indonesia 13. Plant Layout Narogong PMP 2012-2016
13.2 Plant Layout in 5 Years
Rice husk &

Geocycle Clinker
Platform Storage
New Palletizer
Building
109
13.3 Future Plant Layout
(Are there any constraints for the further plant development, e.g. does the plant have sufficient space for
additional production lines?)
2 pcs Silo
Building
NAR1 EP to
Bag Filter
Vertical Mill
for MIC
110
 Key issues
 Limited space for big project
111
14. Main Operational Measures & CAPEX Projects
14.1 Main Operational Measures

14.2 Main CAPEX Projects

14.1 Main Operational Measures for 2013-2014
(Select the 5 up to max. 10 most impacting Operational Measures planned in 2013 and 2014)
1. FPE and CSMD Audits and Gap Analysis (OHS)

2. Shale quarry mapping based on pyrite analysis (Quarry, Technical )
3. Develop VOC analysis for raw materials and alternative raw materials (Technical)
4. Increase grinding capacity in Finish Mill Area (Production, Technical)
5. Improve clinker factor by optimizing Fly Ash Usage (Production, Technical)
6. Improve stability of Solid AF Feeding (Production, Geocycle)
7. Improve SO3 Reduction by using Slake Lime (Technical)
8. Improve MTBF for kilns and mills (Maintenance)
113
Holcim Indonesia 14. Main Operational Measures & CAPEX Projects Narogong PMP 2012-2016
14.2 Main CAPEX Projects in 2013-2014
(Select the 5 up to max. 10 most important CAPEX Projects scheduled in 2013-2014)
1. Replacement kiln shell and tyre for Kiln NAR-2

2. NR.464-KL1 Kiln Gear Reducer Replacement
3. Fixed Inlet Grate Cooler 474 GQ1
4. Auto Balance for CAPEX 2013
5. Service Gas Insulation Switch (GIS)
6. Nar 2 Install new pozzolan bin, weight feeder & transport
7. NR.473-HC1 Rotor & bearing
8. VOC Analyzer (pyrolisis system) is highly needed due to VOC issues in
raw material and AFR
9. Installation of New BC and Hopper For Fly Ash Facility
114
Holcim Indonesia 14. Main Operational Measures & CAPEX Projects Narogong PMP 2012-2016

Plant Master Plan (PMP) 2012-2016: Holcim Indonesia Narogong Plant

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Plant Master Plan (PMP) 2012-2016

© Holcim Group Support Ltd 2012.

1.1 Executive Summary Text Document

© Holcim Group Support Ltd 2012.

(please replace the header as appropriate) Holcim Group Support Ltd

PMP 2012-2016 <insert plant name>

2012 2013 2014 2015 2016

 Product Quality Index N1 > 90% (2012-2016)

 Implement Corporate CSR approach

2.1 Status of OH&S Management System: Green Pyramid

© Holcim Group Support Ltd 2012.

FPE (Fatality Prevention Element) Implementation

Topic Status* Next Steps CAPEX

FPE (Fatality Prevention Element) Implementation

Topic Status* Next Steps CAPEX

FPE (Fatality Prevention Element) Implementation

Topic Status* Next Steps CAPEX

FPE (Fatality Prevention Element) Implementation

Topic Status* Next Steps CAPEX

FPE#10: Working near Water N/A

FPE#11: Rail Safety N/A

FPE (Fatality Prevention Element) Implementation

Topic Status* Next Steps CAPEX

Key issues in period 2008-2011

 Maintained strong focus on target

 Promote reliability on the fixed  Preventive maintenance and testing

 Mapping health profiles and workplaces

3.1 Product Portfolio Development

© Holcim Group Support Ltd 2012.

22% A ST M C150 V 26% A ST M C150 V

HOLCI M QUI CK CA ST HOLCI M QUI CK CA ST

compared to 2011 which was reached

4,6 mio T cement.

Road Rai l Wat er way

Raw material Distance from Transportation

Nar 1 : 2.2 km Off road dump trucks, Caterpillar 773

Shale No. SIPD : 545/485- On road dump trucks cap. 25 ton

Silica (Cicantayan, No IUP :

 The future area 275 Ha :

Block What is missing Action plan Due date

Block What is missing Action plan Due date

4.1.2 Raw Material Pyramid: Silica

Block What is missing Remarks

Reserves Life time (years)

Silica (Cicantayan) 46.64 266.36 323.33

Limestone 426,739.70 71.12 68.8

Exsisting + extension area.

Limestone 654,756.82 109.13 105.60

 Copper Slag and Iron Sand Mixing as an

 In the Beginning of 2012, Silica Cicantayan

 Silica Cicantayan are used starting 2011

 Unit price pozzolana increase 6.5% for 2013-2016

5.1 Electrical Energy

© Holcim Group Support Ltd 2012.

 Lower production rate FM6 NAR2

 Down time FM NAR2 due to BE additive

 Limited FM NAR1 separator fans motor

 Lower mill availability due to improper

 Raw mill NAR1 BE product capacity

 Low efficiency of kiln NAR2 ID fans drive

 False air at raw mill, kiln, finish mill system

 Low efficiency of fixed speed NAR2 cooler

 Low efficiency of NAR2 air plant