Coal

Agritrade drew upon its rich experience in the commodities trading business when launching its Coal Division with resounding success, seven years ago. Together with its major Indonesian trading partners, Agritrade’s coal source comes from various areas in the South and Central Kalimantan Province. Production from the mines are sold locally as well as exported to the Asian markets of Hong Kong, Japan, China, Taiwan and India.

 

Source – Coal Mines

Since 2002, Agritrade has been actively involved in coal mining operations in Indonesia. As of 2008, it has a one-third stake in four coal mine concessions in the province of Kalimantan, Indonesia as well as a 50% stake in a 49,000 hectares coal mine in central Kalimantan. These open cast mines are owned jointly with our Malaysian and Indonesian counterparts. Production from the mines are either shipped to Indonesian power plants or directly exported to well-established power and industrial utilities in the Asian markets of Hong Kong, Japan, China, Taiwan and India.

To date, more than 300 million tonnes of coal resources have been identified in the four concession areas. The resources have been defined by constant exploration and drilling since early 2007 till present. All of the mines are well supervised and modelled by the internationally recognised mine consultants.

The quality of the coal is of low sulphur and ash which makes a suitable sub-bituminous steaming coal for power generation of power plants, manufacture of cement and industrial utilization. The coal mined has specifications of less than 1% sulphur and 4% ash content and is considered an environmentally friendly coal.

The mines owned are:

  • PT Senamas Energindo Mulia (49,000 Ha)
  • PT Buntok Coindo Mineral (3000 Ha)
  • PT Senamas Energindo Mineral (2000 Ha)
  • PT Rimau Tangguh Perkasa (1500 Ha)
  • PT Rimau Energy Mining (1000 Ha)
 

Production and Stock Pile

The coal mines currently produce up to 100,000 MT of coal with the current logistics and facilities and have the capacity to produce up to 1 million MT and more with the right logistics support, infrastructure and facilities in place. Most of the coal is sold to power plants since the nature of the coal is of a low calorific value and is best suited for generating electricity.

Agritrade also sources its coal from local small mine suppliers and stock piles and currently ship up to 200,000 MT of coal monthly.

 

Trading and Transportation

Agritrade sees huge potential in coal and considers it as a resource of the future. Coal as an energy substitute has grown tremendously over the past years and continues to yield attractive margins. With the main markets of China and India, Agritrade takes this opportunity to export more coal to these regions to help support their rising requirements and demand for power and electricity.

Main uses for coal include:

  • Cement Manufacturing
  • Electricity Generation
  • Liquid Fuel
  • Steel Production
Agritrade has its own logistic department that undertakes all the transportation needs in the coal division. Our fleet of tugs and barges are readily available for the huge operations which involve the transportation of coal from the mines to the vessels or direct to the power plants.
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