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Wednesday, 24 September 14
ADARO AGREED TO REDUCE ITS CONCESSION AREA TO 31,379.8 HECTARES

COALspot.com: PT Adaro Energy Tbk  (Adaro Energy) today announced that, PT Adaro Indonesia (AI), its wholly owned subsidiary, entered into a Memorandum of Understanding (MOU) with the Director General of Minerals and Coal, of the Ministry of Energy and Mineral Resources of the Government of the Republic of Indonesia.

This MOU was signed in the framework of the renegotiation process to adjust the Coal Cooperation Agreement (CCA) as mandated by Article 169 of Law No. 4 of 2009 on Mineral and Coal Mining, which is preceded by an agreement of six strategic issues:

- CCA area, the continuation of Mining Operations,
- State Revenue,
- Obligations of Domestic Processing,
- Obligations to Divest, and
- Use of Local Labor, Goods, and Domestic Services. For example, AI has agreed to reduce its concession area to 31,379.8 hectares.

President Director of Adaro Energy, Mr. Garibaldi Thohir, said, “The signing of the MOU is evidence the Adaro Energy Group continues to fulfill the mandate and obligations of Indonesian law as part of the normal course of conducting our business.  The MOU is consistent with our main goal of creating maximum sustainable value from Indonesian coal.  The key terms are in line with our desire to be an asset to our country. We will continue to deliver positive energy to all of our stakeholders for many years to come and in doing so help build the nation.”

Adaro’s principal mining location is at Tabalong district in South Kalimantan, where its subsidiary PT Adaro Indonesia operates the largest single-site coal mine in the southern hemisphere. Adaro operates under a first-generation CCA (coal co-operation agreement) with the Indonesian Government.

According to Adaro Energy website, Adaro produced 52.3 Mmt of coal in 2013 and coal sales reached 53.5 Mmt. Adaro blessed with 12.8 billion tons of sub-bituminous coal with moderate or low CV, ultra Low sulphur, Ash and NOx emission.

25% of total coal production allocated to or  supplied to Indonesian utilities and remaining 75% shipped to its overseas customers. In 2014 Adaro plan to produce between 54 million and 56 million tonnes of coal.



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