KPC Coal Chain

KPC’s concession area is 90,938 hectares. Detailed design and construction started in January 1989 and the project was completed on schedule on 1 September 1991. Coal shipment to our customers has increased from 7 million tons in 1992 to 53.2 million tons in 2013. KPC’s operation is fully integrated and self-supporting.

PRE MINING PHASE

Mining is carried out by truck and shovel method in open pits. A number of open pits are in operation at any one time, operated by KPC and contractors. The current fleet capacity is 545 Million BCM per annum. All servicing and maintenance is carried out on site. Mining operations are carried out 24 hours a day for 365 days per year. Areas to be mined are initially logged and the top soil removed and stockpiled for later rehabilitation before blasting, overburden removal and coal extraction takes place. The overburden is dumped out of pit or in mined out areas for later rehabilitation.

MINING

In addition to productivity and quality aspects, environment aspect has become our main priority. From the very beginning phase prior to the mining process, KPC’s geologist team will conduct a survey and build a model in order to identify all associated risks and potential impacts. The outcome of these survey and model will then be used for operational and post-mining area reclamation planning.

KPC identifies the affected vegetation and animals before the removal of top soil. Next, we collect seeds from trees which will be nurtured at our nursery facility. Additionally, we also collect and keep the seeds from the disturbed forests. These collection of seeds are nurtured in our nursery to be used later in the reclamation phase and post-mining area rehabilitation process.

COAL PREPARATION

Coal is hauled from Sangatta pits to Run of Mine (ROM) stockpiles or direct to the coal preparation plants. The Sangatta coal preparation plant has a clean coal crushing capacity of 7,100 tph and wash plant feed (dirty coal) crusher capacity of 300 tph. The nominal top size of product coal is 50 mm. The majority of ROM coal is insitu low ash, clean and directly Coal mining crushed with no further preparation necessary. Approximately 1.4 Mtpa of dirty coal from roof and floor of seams processed through the dense medium cyclone preparation plant.

ROM coal from Bengalon pits is hauled to Lubuk Tutung coal handling facility where it is crushed and stockpiled at a 2,500 tph facility.

Mechanical sampling systems, metal detectors, belt scales and temperature sensors are located on belt conveyors across the coal chain to monitor product quality and quantity continuously.

OVERLAND CONVEYOR

Product coal is transported the 13 km from the Sangatta Coal Preparation Plant to the Tanjung Bara Coal Terminal stockpiles on a double stage, covered, overland conveyor belt (OLC). The capacity of the OLC is 2 x 4,200 tph.

TANJUNG BARA COAL TERMINAL

The majority of our coal is shipped to customers through the Tanjung Bara Coal Terminal (TBCT).

•TBCT stockpiles has a live capacity of 2 x 1.2 million tons

•Stacking capacity of 2 x 4,200 tph

•Reclaimer capacity of 2 x 4,700 tph

•Coal is delivered to the shiploading conveyor by a combination of reclaimer and direct bypass from the OLC.

•TBCT is also equipped by ship loading conveyor that spans 2km to tresstle jetty to a deepwater berth with available draft of 17.2 m that able to support 220,000 DWT vessels.

• Twin quardrant shiploaders dengan kapasitas total hingga 9.000 ton per jam.

Supported by calm sea, low tidal ranges and good weather all year long, KPC can ensure year-round operation and shipment. An independent surveyor operates a mechanical sampling system which located at the beginning of the ship loader conveyor to ensure product quality.

Surveyor independen mengoperasikan sistem pengambilan sampel mekanik yang terletak di awal conveyor kapal loader untuk memastikan kualitas produk.

TRANSHIPPING OPERATION

KPC commenced transshipping operation in 2005. We have two barges facility: Tanjung Bara and Lubuk Tutung, with a total average capacity of 8,000 tons loaded at 3,000 ton per hour rate.

KPC has two transhipping methods:

  1. Coal is transshipped to geared vessels at Tanjung Bara or Lubuk Tutung anchorage, each approximately 1 km from shore at a rate of 12,500 tpd.
  2. Coal is transshipped to gearless vessels (up to Capeside) through a Floating Transfer Station (FTS with 1,200 tph capacity) and a Floating Crane Station (FCS with 1,000 tph capacity), taking coal from barges by twin grabs which discharge to FTD conveyors that feed directly to the vessel. Our FTS is equipped with sampling system, metal detector, and able to be preloaded with up to 6,000 ton of coal, hence ensuring uninterrupted ship loading process.

QUALITY ASSURANCE

KPC implements a comprehensive Quality Assurance program at all phases of exploration, mining, processing, handling, loading, and delivery to our end-users. It is our ultimate goal to ensure our product is delivered in accordance with contract specification of each customer. A dedicated team is on stand by around the clock to ensure coal quality and quantity right from the pits to the vessels. On top of that as a part of our customer service KPC Coal Technology team provides assistance to help customers in ensuring coal quality, implementation of various coal technology, and preventing combustion and other product-related risks.

OPERATIONS INFRASTRUCTURE

Mine operations are serviced by administration offices, training complexes, mine offices, telecommunications centre, heavy and light vehicle maintenance workshops, and engineering workshops.

At the coal terminal, facilities exist for tugboats, pilot, harbor master, customs, immigration, an independent superintending company, an independent marine surveyor and ships’ agents. A general service wharf handles goods and materials.

Fresh water is supplied from several underground bores via storage tanks. All weather roads ensure easy access throughout operational and residential areas. Coal-fired power station (2 x 5 MW) meets base load capacity and is supplemented by diesel (3 x 2.3 MW) generating capacity for peak loads and during maintenance periods.

ENVIRONMENTAL MANAGEMENT

KPC adopts and proudly practices best practices in environmental management. Our management system is ISO 14001 certified. Mining design and strategic planning carefully take environmental aspects and potential risk as key consideration.

On top of that, KPC implements an extensive and comprehensive environmental monitoring program towards our environmental performance and targets regularly. We also collaborate with government institution and independent auditors to conduct environmental monitoring and reporting.

Currently, more that 800 hectares of post- mining land is rehabilitated every year. Being adjacently located by Kutai National Park, KPC embraces our responsibility to provide support and protection to the inhabitants of the park. We have been in cooperation with Kutai National Park to protect Orangutan and other biodiversity endemic to East Kalimantan region through funding and technical support.

THE HUMAN ENVIRONMENT

KPC business improvement, along with safety, staff recruitment, training and development programs are designed to promote a safe, harmonious and progressive working environment.

Most of KPC’s employees and their families live in the townships of Swarga Bara, Sangatta Lama, and Teluk Lingga. Swarga Bara townships, which located at the north of Sangatta River is completed with a range of housing complexes, recreational facilities, primary/secondary school, hospital, and emergency facilities.

We are also supported by Tanjung Bara airport that connect our mine site directly to Balikpapan International Airport

SAFETY

The safety of our people is our utmost priority. We implement Prima Nirbhaya Safety System which adopts NOSA, international, and Indonesian safety regulation. We committed to ensure workplace safety and minimize the risk of accidents.

COMMUNITY DEVELOPMENT PROGRAM

It is undeniable that mining activities can have both positive and negative impacts on the social, economic, and environmental lives around our mining area. The positive effects include direct and indirect employment, the development of supporting businesses which are related to mining operations or are caused due to population increase. On the other hand, the negative impacts include the increase of disease spread due to population migration, the existence of a competitive gap between newcomer and local workforces, the existence of a problem related to basic needs fulfillment, as well as, changes of landscape that affect environment.

Good mining practices require company to minimize the impact of the mine and maximize all possible benefits.

KPC plays a part as a catalyst in local development process. In order to urge self- reliance of the local area, especially in villages around mining area, KPC formulated seven program areas in 2003 in which its implementation is based on the target of development area, starting from regency state to villages by considering national and international issues. These seven program areas consist of:

  • Improvement of the Government and Society Institutional Capacity Building
  • Improvement of Sanitation and Public Health
  • Improvement of Education and Training
  • Development of Agribusiness
  • CDevelopment of Micro, Small, and Medium Enterprises
  • Nature and Culture Conservation
  • Improvement of Infrastructure

The post-mining land rehabilitation program that was initiated in 2008 is based on government’s development agenda. This program is projected to be the manoeuver of local economy by maximizing synergy and collaboration among stakeholders.