PT. Multi Harapan Utama Coal

Company Profile

PT. Multi Harapan Utama is an Indonesian joint venture company incorporated in 1986.

In 1986 the company was granted a coal concession area in East Kalimantan, Indonesia. The coal cooperation agreement with the Indonesian Government covers a period of 30 years until the year 2018

The Concession Area

The concession area is located 60 km to the south west of the provincial capital of Samarinda with the major Mahakam river passing through the area.

The original area granted in 1986 covered 1900 square kilometres and as per the terms of the agreement has been reduced to 25% of original holding, bening some 475 square kilometres.

Exploration throughout the concession has proven several coal resources of mineable potential including Busang, Sentuk, and Gitan areas.

To date over 120 million tonnes of coal reserve have been identified.

Busang Mine

The first mining area selected was in the north of the concession at the Busang Syncline.

Exploration, mine planning and design of processing, stockpiling, and barge loading facilities was undertaken in 1987.

The Busang mine was brought into production in April 1988 and operates at a production capacity of 2,000,000 MT/ annum.

Multi brand coal produced from the mine is agood steaming of medium sulphur, medium to high moisture, low ash, and a medium heating value.

Mining Operations

The Busang mine is a multi thin seam mining operation which requires stringent design, planning, and management control in order to maximize recovery from all mineable seams and achieve an optimum product coal blend.

Detailed drilling and strict sampling procedures are in place in order to manage the sequence of coal extraction and produce a consistent quality product.

Several coal faces are in operation at any one time and mining activity is undertaken by conventional methods utilizing trucks, front-end loaders, excavators, and bulldozers for both overburden removal and coal mining.

Coal seams are carefully cleaned to prevent dilution and loaded by excavators into 30 tonne trucks for transportation to the Beloro facility which is situated 30 km north of the mining area.

The operations is carried out by a mining contractor under strict supervision of PT. Multi Harapan Utama.

 

Gitan and sentuk Coal Deposits

General exploration activity has been completed in the Gitan (Belumpur river) and Sentuk coal deposits.

Significant reserves of good quality economically recoverable coal have been identified and the decision made to develop a new 2,000,000 MT/ annum operation.

The project will require construction of a new stockpile and port facility at Jembayan on the Mahakam river together with a 40 km coal haul road to link the mine to the port.

Land acquisition has been completed at the stock pile/ port location and is currently in progress for the access road.

A variety of coal qualities will be available from the new mines and blended products will be produced to meet a wider range of customer requirements, from the current Multi brand market.

General exploration activity has been completed in the Gitan (Belumpur river) and Sentuk coal deposits.

Significant reserves of good quality economically recoverable coal have been identified and the decision made to develop a new 2,000,000 MT/ annum operation.

The project will require construction of a new stockpile and port facility at Jembayan on the Mahakam river together with a 40 km coal haul road to link the mine to the port.

Land acquisition has been completed at the stock pile/ port location and is currently in progress for the access road.

A variety of coal qualities will be available from the new mines and blended products will be produced to meet a wider range of customer requirements, from the current Multi brand market.

Facilities

The Beloro facilities include the site administration office, processing plant, stockpiling and barge loading terminal situated on the south bank of the Mahakam river.

Raw coal stockpile for crushing and washing through the plant at a rate of 400 MT/ hour.

Total stockpile capacity is 135,000 MT

At Beloro coal is reclaimed from the product stockpile by dozer and underground hopper to a fixed barge loader for delivery at 1,000MT/ hour into ocean going barges up to 8,000 DWT.

From the Beloro jetty coal is transported downstream on the Mahakam river to the open sea.

For domestic customers coal is barged directly and for export it can either be transhipped at the Mahakam river delta (Muara Jawa 160 km/ Muara Berau 250 km) or loaded through Indonesia Bult Terminal (IBT), Pulau Laut.

At either location the maximum size vessel which can be loaded is Panamax

Coal Quality and Marketing

Multi Brand Coal has been succesfully marketed in Taiwan, Japan, Hongkong, Philippines, Indonesia,and other Asian Countries.

PT. Multi Harapan Utama has established a good reputation as a reliable supplier of a consistent quality product.

The majority of coal sales are under long term contract with the coal being manly used for Power Generation.

Other markets include cement plants, general industry and steel mills (PCI).