Performance Improvement

Efficiency, process optimization and internal capability improvement are three KPC’s key ingredients in achieving healthy and solid business productivity and financial performance in order to build a strong foundation towards sustainability.

Efficiency serves not only as a strategy in facing market challenges but it becomes a part of our Good Mining Practice, which has been implemented consistenly in KPC. Efficiency is implemented within viable management of production and operational costs and our commitment to the environment and local communities. We believe that efficiency, process optimization and internal capability improvement are three KPC’s key ingredients in achieving healthy and solid business productivity and financial performance in order to build a strong foundation towards sustainability.

Continuous Improvement Spirit that Keeps Burning On

Improvement spirit is often felt only in the beginning phase and usually goes away as time passes. On the other hand, KPC realizes that transformation and improvement do not happen in an instant. Those are processes that require commitment and consistency from every involved element and party. Therefore, since 2008 KPC established a special division called Business Process Improvement Division (BPID) that engages in KPC’s business improvement project planning, implementation, monitoring, and sustainability.

From 2008 until 2012, BPID carried out 6 improvement project cycles which resulted in various achievements, such as: increased equipment productivity, decreased coal contamination, minimized occupational accidents due to fatigue, as well as less use of fuel and explosives.

KPC strategically decided to sharpen and strengthen improvement efforts by implementing new improvement project namely “Membara Project.” Main focus of Membara Project is on how to increase overall effectiveness (Overall Equipment Effectiveness – OEE) of main equipment used in KPC’s mining operations.

Overall Equipment Effectiveness (OEE)

Through OEE, KPC is able to monitor and ensure that all aspects related to production equipment, such as equipment usage and maintenance as well as operators are running well and effectively.

Working Area Management (WAM)

holds Work Area Management (WAM) initiative in order to create working area that is cleaner, neater, more comfortable, and more organized. In addition, WAM becomes one of our approaches in instilling working culture and improvement spirit in every KPC’s employee by inviting them to make proposals for WAM programs that are related to their scope of work.

Excellent Performance Training

This program is aimed to develop employees’ characters and discipline, therefore encouraging them to be people who are tough, disciplined, agile and healthy, as well as posessing strong solidarity, patriotism, and love for KPC.

Our Mining Operation

We conduct coal exploration, production, and marketing in an area of ​​90,938 ha in East Kutai, East Kalimantan, according to Coal Contracts of Work (PKP2B).

KPC coal mining process starts with the mining preparation phase, which is exploration survey. Exploration activities include field mapping, geological structure measurement, sampling, exploration drilling, geophysical logging, and reserves estimation. The next stage is mining or production stage. Production stage begins with identification and documentation of the flora and fauna spotted in mining location. Samples of floras are then transferred and treated as plant seeds in KPC’s nursery for rehabilitation phase afterwards. The next phase is removal of topsoil (land clearing). After removing the topsoil to stockpile location, we are ready for drilling and blasting.

After the topsoil is removed, coal is mined and transported to the coal stockpile. The coal will then be processed in washing plant and separated according to the differences in coal weight and impurities. After separating impurities from clean coal, the next step is drying clean coal using vibrating sieving machine. This process helps release some surface water from the coal. The lower the water content, the higher the calorie of the coal. KPC managed ideal coal with particular water content based on customers’ requests.

Planned and Optimal Infrastructure Maintenance and Rejuvenation

Good mining process is supported by the availability of strong infrastructures that work optimally. Therefore, infrastructures need maintenance and rejuvenation, especially for availability of heavy equipment used in the mining process. KPC’s Mining Support Division (MSD) works on regular and shecduled maintenance of the production equipment. MSD implements specific strategies in performing maintenance of KPC equipment and works closely with our contractors to ensure the availability of heavy equipment that used in the mining process.