PT AEL Indonesia, a subsidiary of AEL (a producer and supplier of commercial explosives, initiating systems and blasting services), has been awarded two major contracts by leading coal mining contractors, PT Bukit Makmur (BUMA); at Gunungbayan coal mine and PT Thiess Contractors Indonesia (TCI); at Melak coal mine. AEL Indonesia will supply all explosives and initiating systems for both operations for a five year period and will provide a ‘down-the-hole’ service to BUMA at Gunungbayan and a ‘prime, load, tie and shoot’ service to TCI at Melak.
The Melak coal mine is part of, mining company, Bayan Resources’ expansion plans and is located near Melak in East Kalimantan, Indonesia. The new contract includes mine planning, overburden removal, coal mining, plus loading and transportation of coal from the mine site to the river port.
The initial production target is 4 Mt of coal with a 40 million m3/y (bank) of overburden targeted by the third year. BUMA is one of the two mining contractors operating at Gunungbayan mine with a contract to remove overburden. The company moves around 30 million m3/y (bank) of material and has intentions of ramping volumes up to 54 million m3/y (bank). The mine has an estimated lifespan of 20 years and produces in excess of 5 Mt/y of coal.
Gunungbayan mine is owned by PT Gunung Bayan Pratam (GBP), which has a second generation Coal Contract of Works (CCOW) to mine in Muara Pahu, East Kalimantan. The mine is split into two separate blocks with a total combined concession area of 24,066 ha. GBP extracts and markets the coal, which is predominantly exported.
AEL Indonesia is committed to meeting the short, medium and long-term needs of TCI and BUMA, which will commence with the establishment of dedicated world class on-site bulk emulsion manufacturing plants to produce AEL’s Synergy range of bulk emulsions.
TCI’s Melak site will be serviced by one new 20 t Mobile Manufacturing Unit (MMU) and two new 20 t units will operate on site at Gunungbayan. These units will deliver AEL’s comprehensive range of bulk explosives down-the-hole, including ANFO for dry holes; Synergy S1000 Heavy ANFO range for dry/dewatered holes; and Synergy S100 range of doped emulsions for wet holes.
A total of some 24,000 t/y of bulk explosives will be delivered into blast holes at the two sites.
Patrick Foo, General Manager for PT AEL Indonesia: “AEL was awarded these two five year contracts in the face of stiff competition from established explosives companies in the region due to our capabilities of delivering on key criteria. These criteria include a fast mobilisation time, as well as skilled and experienced personnel with the capacity to deliver on engineering and operational demands. Along with this, was the security of supply of both ammonium nitrate and initiating explosives, as well as the flexibility to work with several licensed explosives companies.”
According to Foo, his team also demonstrated extensive experience in the workings of explosives permits in the highly regulated Indonesian explosives industry. “Other criteria included a dedicated and experienced supply chain team, specialist in-country resources, world class service and commitment to continuous improvement, as well as cost-effective and innovative offerings and value propositions.”
AEL Indonesia’s head office is situated in Jakarta and services Southeast Asia. “Since the establishment of AEL business in Southeast Asia, we have developed a strong and effective business platform to deliver world class explosive products and services, which include building lasting partnerships with customers,” adds Foo.
Construction of AEL’s emulsion manufacturing plant and explosives magazine is well underway at the two sites. The two bulk emulsion manufacturing plants will be transported to the sites for erection after completion. The three new MMUs, fully imported from AEL South Africa, are on their way to the two sites. The majority of the on-site crews have been recruited and training is underway. Both sites are expected to be fully operational by June 2009.
Foo comments: “With the significant challenges facing the global financial environment and the seemingly endless pressures our customers are facing in the commodities arena, PT AEL Indonesia’s proposal includes a number of value-adding initiatives for our customers. These will effectively support TCI and BUMA not only during this difficult period, but also provide a strong platform for them to build a competitive advantage in the marketplace going forward.”