CARSURIN

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September 2015

carsurin coal & minerals insider

 September 2015

IN THE FIELD BY CARSURIN

Sumatra
• In Jambi, coal sales face difficulty because the falling prices. The piled up coal reserves at the Talang Duku port area,
many companies have been closed for a moment before the coal supply is ready to be distributed. (Tribun News)
• Coal mining activities in West Tanjung Jabung continued to decline. From a total of 31 companies operating in the
region, only 23 companies remaining in Ulu area, while 8 companies are closed. Many coal business have left because
they did not meet obligations to the state, such as not paying taxes and other administrative requirements. (Tribun
News)
• Ministry of Energy and Mineral Resources (ESDM) states the realization of coal exports up to July 2015 has reached
186.8 million tons. It drop 18% compare to the same period last year amounted to 227.9 million tons. The fall in
exports occurred due to the declining global demand. (Antara)
• According Ministry of Energy and Mineral Resources (ESDM) of Jambi Province, from a total of 77 coal companies
which have been declared clean and clear (CnC) in Jambi Province, only 11 companies are able to continue the
business operation. Although the others are able to operate, they are on stockpile activity waiting the coal prices to
bounce back. Only 11 companies are well operated as they have a definite market, for example, to supply the coal-fire
steam power plant (PLTU) and the gas power plant (PLTG). (Antara)

Kalimantan
• A total of approximately 125 coal mining companies in East Kalimantan has closed their operation. Apindo estimates
the number of 200 companies could close by year’s end. The most severe impact as a result of a decline in coal
demand in Kalimantan and Sumatra were caused by 3 external factors: slumped commodity prices in domestic and
international level; China’s slowing economic growth; and the strengthen US dollar exchange rate. (Tribun News)
• Indonesian Coal Mining Association (APBI) reported from 3,000 holder Mining Permits (IUP) recorded in the Ministry
of Energy and Mineral Resources (ESDM), only 20% (700-800) of them are operating due to the drop in coal prices.
(Tribun News)
• Until August 2015, there were 83 coal Mining Permits (IUP) in North Kalimantan revoked by the Government as they
did not comply with the obligation (not create report, not pay non-tax revenues (PNBP) like royalty and fixed fees).
(Tribun News)

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coal
news

September 2015

Coal Price Guide (HBA) - August 2015

Source: http://www.minerba.esdm.go.id/

HBA

US$ 58,21 per ton

HPB Coal Marker

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coal
news

September 2015

Bukit Asam’s H1 Profit Plunges

on Falling Domestic Sales, Weak
Coal Prices
- 1 August 2015 -

Globe Asia, Jakarta - Indonesian state-controlled coal miner
Bukit Asam’s profit declined during the first half of the year,
dragged by a decline in domestic sales and persistently weak
coal prices.
In a listing on the local stock exchange on Wednesday, Bukit
Asam reported a 31 percent fall in profit to approximately Rp
795 billion ($59 million) in profit in the first half of the year
from Rp 1.2 trillion in the same period last year.
The state miner’s revenue contributed equally by exports and
domestic sales saw meager growth at 1.6 percent to Rp 6.5
trillion from Rp 6.4 trillion last year as sales volumes rose by
a slight 2 percent to 9.03 million metric tons.
Much of the company’s woes during the six-month period
stemmed from the continued decline of coal prices globally,
which dragged the average selling price of Bukit Asam by 3
percent to Rp 703.005 per ton from Rp 726.766 per ton in the
same period last year.
On top of that, Bukit Asam saw a steep decline in domestic
sales between January and June despite an increase in coal
exports volume. Domestic sales fell 10 percent to 4.62 million
ton, making up 51 percent of the miner’s total sales. In
comparison, exports which are mostly to Taiwan and Japan,
rose 20 percent to 4.41 million ton.
“Bukit Asam’s net profit in the first half is roughly in line with
our expectations. We believe that the stronger performance
in the second quarter is mostly due to lower operating costs
compared to the first quarter, which have increased gross
and operational margin,” said Ariyanto Kurniawan an analyst
from Mandiri Sekuritas, in a memo to investors on Tuesday.
“Even though there was stronger growth in the second
quarter, we believe that [there is] outlook for revenue in the
short-term because of weak commodity prices,” he said,
recommending a “neutral” stance on Bukit Asam’s stocks.
Bukit Asam targets to boost sales volume by 33 percent to
24 million ton by the end of the year. To achieve that goal,
the state miner recently increased the capacity of its port in
Bandar Lampung, Lampung to 25 million ton from 13 million
ton last year.
Joko Pramono, corporate secretary at the state miner, said
in a statement on Wednesday that the company is also
working to grow its export sales, assessing countries such as
Cambodia, South Korea, Sri Lanka, Bangladesh and Vietnam
as potential export destinations.

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coal
news
September 2015
Indonesian coal miner Harum Energy
has bleak near-term outlook as H1
sales price falls 15%
- 5 August 2015 -
Platts, Singapore - Indonesian thermal coal miner PT Harum
Energy posted a near 15% year-on-year slump in average
sales price for first-half 2015, and said any recovery in prices
looked unlikely in the near term.
“The market remains over-supplied, with few cuts in output
by producers outside of North America,” the company said
in its quarterly report. “Thermal coal prices remain at eight-
year lows.”
The company’s quarterly report dated July 31 was available
on its website late Monday. The company said a reduction in
Chinese thermal coal imports this year had hurt Indonesian
miners.
Chinese thermal coal imports slumped 44% year on year
in the first six months of 2015 on a number of factors
including price cuts from domestic Chinese producers;
more stringent regulatory scrutiny by the government; an
industrial slowdown reducing power demand; and increased
competitiveness from the hydropower sector.
Harum said it sold about 44% of its volume in H1 2015 to
South Korea, followed by Taiwan at 16% and Malaysia at
15%. China accounted for only 11% of the sales volume,
while India accounted for just 2%.
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“The company has sold all its Q3 production and is in the
process of selling its Q4 production,” said Harum.
Harum, which has cash and cash equivalents of $192.3
million as of June 30, 2015, said it is planning to reduce 25%
of its barging fleet starting in the third quarter to reduce
fixed costs. The company produced 2.3 million mt of coal in
the first half of the year, sliding 46.2% from last year. Sales
volume slumped 38.5% year on year to 2.7 million mt in H1
2015.
Average sales prices for H1 2015 fell to $54.10/mt from
$63.60/mt FOB in the same period last year, the company
added. Amid falling thermal coal prices, the company had
suspended activity at one of its mines -- Santan Batubara --
in March 2014.
“SB is evaluating alternatives for conserving maximum value
in SB as their reserves have high quality coal. The activity will
be restarting once coal prices increase,” the company had
said.
The 90-day price of FOB Kalimantan 5,900 kcal/kg GAR coal
has dropped about 11% so far this year, Platts data showed.
The SB mine accounted for a production of 400,000 mt in the
first half of last year.
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coal
news
September 2015
Coal Mining Companies Agree to
Limit Mining Areas
- 5 August 2015 -
Tempo.co, Jakarta - Ten coal mining work contract (PKP2B)
holders have agreed to all amendments set forth in their
PKP2B. The amendments were made to adjust the contract
with the Mineral and Coal Mining Law. The Energy and Mineral
Resources (ESDM) Ministry claimed that the amendment
would boost state revenue up to nine percent.
“The amendment was based on a discussion between the
ten companies, the ESDM Ministry, local government, House
of Representatives Commission VII, and the Investment
Coordinating Board (BKPM),” Bambang Gatot Ariyono, the
director general of mineral and coal at the ESDM Ministry,
said on Wednesday, August 5, 2015.
Bambang added, 21 out of 31 articles in the contract were
amended particularly those related to the limitation of
mining areas, the continuation of mining operation, state
revenue, the obligation of processing and refining in the
country’s smelters, divestment obligations, as well as the
obligations of the use of domestic goods and services.
According to Gatot, the additional state revenue comes from
13.5 percent of coal production fund (DHPB) agreed by each
company. However, he refused to provide the exact figure.
In addition, the amendment would result in limitations of
operational areas. ESDM Minister Sudirman Said explained
that the move was aimed at developing sustainable coal
mining.
“We don’t have much [coal] potential. But we become the
largest coal importer. That’s why we need further regulation,”
Sudirman said.
Sudirman added the mineral and coal industry must
be operated by companies willing to make long-term
investments, instead of hit-and-run business owners.
To this date, the government is still negotiating contract
amendments with 34 mining contract holders. The process is
expected to be completed in October this year.
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Coal miners at risk of going out
of business
- 5 August 2015 -
The Jakarta Post, Jakarta - The price of coal has continued
to slump, causing the majority of coal mining companies in
Indonesia to stop operating and threatening to put them out
of business. According to Indonesian Coal Mining Association
deputy executive director Hendra Sinadia, up to 80 percent
of coal mining companies in Indonesia have temporarily shut
down their operations.
“The [production cost] margin is negative. Why should they
continue operating?” said Hendra as quoted by tempo.co.
Hendra said that from around 3,000 coal mining license
(IUP) holders, only 500 companies were currently operating.
Companies that have had to shut down are generally small-
scale companies in mining areas such as Kalimantan.
However, Hendra guaranteed that coal production would
still remain sufficient to meet domestic demand thanks
to the high technology and large reserves owned by some
larger companies. “Those big companies can still operate
efficiently,” he explained.
The average global for coal price was $64.48 per ton in June,
while Indonesia’s coal-price reference (HBA) was $59.59 per
ton in the same month. The price is lower than previous year,
where the average global price was $72.45 per ton. Last July,
the HBA dropped again to $59.19 per ton. As a result, many
coal companies face bankruptcy as their production cost
exceeds the selling price.
According to Hendra, the development of steam power plants
in Indonesia cannot sustain coal price due to the stagnant
demand from the plants.
5
coal
news
September 2015
Indonesian Banks Boost Bad
Loan Provisions, Fret About
Mining Sector Impact
- 5 August 2015 -
Reuters, Jakarta / Bengaluru - Several Indonesian big banks
have sharply hiked bad loan provisions, helping push
combined first-half profits to their first decline in almost a
decade, as they fret about the impact of a troubled mining
sector and weaker commodity prices on the economy.
State-owned lender Bank Negara Indonesia nearly tripled its
provisions to Rp 6 trillion ($445 million) in the six months to
end-June, while net profit fell 51 percent. At Bank Mandiri,
the nation’s biggest lender by assets, provisions jumped 41
percent to Rp 4 trillion while net profit growth slowed to 3.5
percent from 16 percent in the same period a year earlier.
“The economy may not recover quickly, so we need to have a
bigger piggy bank,” Budi Gunadi Sadikin, Mandiri’s president
director, told reporters after its earnings last week.
“That’s why we don’t want as much profit – it’s better to have
reserves.” He noted the lender has significant exposure to the
mining sector.
Combined first-half profits at Indonesia’s 10 biggest banks
fell 8.9 percent to Rp 37.6 trillion ($2.8 billion) from a year
earlier, the first fall in nine years, according to Thomson
Reuters data. Data on Wednesday also showed growth for
Southeast Asia’s largest economy was the slowest since
2009 in the second quarter, with commodity exports weak
and the government unable to push through badly needed
infrastructure projects.
Teguh Hartanto, analyst at Bahana Securities, said he expects
the banking sector’s non-performing loan ratio to increase to
2.7 percent-2.8 percent this year from 2.4 percent now.
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Bukit Asam Sets Aside $2.1b for
New Power Plants Through 2017
- 6 August 2015 -
The Jakarta Post, Jakarta - State-controlled coal miner
Tambang Batubara Bukit Asam will allocate up to $2.1 billion
through 2017 to build power plants as it looks to diversify its
revenue stream beyond coal exports.
The company plans to spend $600 this year, another $700
million next year, and $800 million the following year, said
Achmad Sudarto, the finance director at Bukit Asam.
“Some of the funds will be come from our internal cash, while
the remainder will come from bank loans or bond issues,”
Achmad said on Wednesday.
Bukit Asam will start construction of a 1,240-megawatt coal-
fired power plant in Tanjung Enim, South Sumatra, by the
end of this year. The $1.59 billion plant, dubbed Sumsel 8,
will be built at the company’s mine mouth, which should cut
transport costs and make the plant more efficient.
The Export-Import Bank of China is providing a loan for
three-quarters of the plant cost, while Bukit Asam will join
with Chinese power company China Huadian Hongkong to
pay for the remainder of the project.
Bukit Asam is also bidding to build two planned coal-fired
plants in South Sumatra: the 1,200 MW Sumsel 9 and the
600 MW Sumsel 10, both commissioned by state utility PLN.
The company is competing with Adaro Energy, Baramulti
Suksessarana, Hanson International, Adi Coal, International
Power GDF Suez (IP GDF Suez), and Mitsui of Japan.
The winner of the tender will be announced by the end of
this month, Achmad said. If Bukit Asam wins the bid, it plans
to take a 45 percent stake in the projects, worth a combined
$2.16 billion, and look for an overseas partner for the
remainder.
Bukit Asam currently operates the 200 MW Banjarsari power
plant in South Sumatra, which consumes up to 1.5 million
metric tons of coal a year.
The Sumsel 8 project will need 5.5 million tons, while Sumsel
9 and Sumsel 10 will take a combined 8 million tons, Achmad
said. “If this projects goes through, we will secure up to 15
million tons a year for domestic supply,” he said.
Bukit Asam’s power business is expected to account for 40
percent of the company’s income by 2019.
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coal
news
September 2015
10 coal miners agree
to amend operating
contracts
- 6 August 2015 -
The Jakarta Post, Jakarta - As many as 10 coal mining
companies have finally agreed to amend their operating
contracts following prolonged renegotiations with the
government. Under the amended contracts, the mining
companies will, among other things, have to adjust their
royalty payments and mining areas in accordance with the
requirements stipulated in the 2009 Mining Law.
The 10 companies that agreed to amend their contracts are
Indominco Mandiri, Jorong Barutama Greston, Trubaindo
Coal Mining, Antang Gunung Meratus, Bahari Cakrawala
Sebuku, Borneo Indobara, Gunung Bayan Pratama Coal,
Kartika Selabumi Mining, Mandiri Intiprakasa and Indexim
Coalindo.
The companies, which operate in various provinces in
Kalimantan, are relatively small in size compared to
Indonesia’s major coal mining firms such as Berau Coal,
Adaro Energy and Arutmin.
Seventy-three coal contracts of works and 34 mineral
contracts of work are still in the process of renegotiation
and are expected to be completed in October this year. Last
year, only nickel miner PT Vale Indonesia agreed to amend
its contract.
“We hope this move can be followed by other coal mining
companies, which are expected to speed up the negotiation
process and sign the amendments of their contracts,”
Energy and Mineral Resources Minister Sudirman Said said
during the signing of the amended contracts in Jakarta on
Wednesday.
“Three companies from our holding group have signed the
amendment and one is still in the process of negotiation. We
hope it will not take much longer,” said Leksono Poeranto,
corporate affairs director at publicly listed Indo Tambangraya
Megah.
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The ministry’s director general for minerals and coal,
Bambang Gatot Ariyono, said 22 out of 31 articles in the
contract were amended, particularly those related to the
limitation of mining areas, the continuation of mining
operation and the amount of royalties that firms have to pay
to the government.
The amended points also include the obligation of processing
and refining in the country’s smelters, divestment as well
as the commitment to use domestic goods, services and
workforces.
“Divestment obligation will help increase domestic shares
through state-owned enterprises and local entrepreneurs,”
Sudirman said.
Bambang added the revised contracts would help create
additional state revenue of between 6 and 9 percent as
all types of coal were subject to a 13.5 percent royalty.
Previously, coal miners were required to pay royalties of
between 3 percent to 13.5 percent depending on the calories
of coal they produced.
The renegotiation is mandated by Law No. 4/2009 on mining
as it aims to change the mining regime from “contract” to
“permit” to ensure the state will have a superior position.
Renegotiations should have been completed one year after
the law was passed. However, the target was frequently
delayed because of the complexity of related issues, such as
financial obligations.
Among terms regulated in the financial obligation formulation
are requirements that coal mining companies pay royalties in
advance and that an export tax may be imposed in the future.
The two issues contributed to a standoff in the renegotiations
with coal mining firms, which saw the requirements as
disadvantageous to them.
7
coal
news
September 2015
Mining companies return over
9,000 ha
- 7 August 2015 -
The Jakarta Post, Jakarta - More than 9,000 hectares of
coal mining land has been returned to the state following
the signing of 10 amended coal mining licenses (PKP2B).
According to the Energy and Mineral Resources Ministry’s
director for coal Adhi Wibowo, the handover relates to the
2009 Mining Law that stipulates a maximum land use of
15,000 ha.
“The land-use rights are part of the re-negotiated contract.
[These mining companies] have agreed to release some of
their mining territory,” said Adhi on Thursday as quoted by
kompas.com.
Adhi added that any PKP2B holders who still occupied more
than 15,000 ha of land had already showed [the ministry]
their long-term plans for up until their contracts expire.
“Their long-term plans will also need supporting areas in
addition to production land,” said Adhi.
Adhi said that the 9,026 ha of returned land would be
listed as state reserve areas (WPN) and could be offered to
state-owned enterprises (BUMN) and provincially owned
companies (BUMD) as well as private enterprises.
“Of course the offer will go through an auction and we will
prioritize BUMN and BUMD. If they are not interested, we will
then offer the land to private enterprises,” said Adhi.
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Economy in brief: Govt making
use of BPPT in energy, mining
- 11 August 2015 -
The Jakarta Post, Jakarta - Among numerous other projects
in the pipeline, the government has decided to utilize
more qualifications of the Agency or the Assessment and
Application of Technology (BPPT) to conduct studies and
engineering planning.
From now on, BPPT will be involved in more projects,
particularly those related to the energy and mining sector.
Agreements highlighting the move were signed on Monday,
involving BPPT, the Energy and Mineral Resources Ministry
and state-owned oil and gas giant Pertamina.
Based on the agreements, BPPT will be in charge to handle
various studies and projects — including the feasibility study
and front-end-engineering-design — which were previously
carried out by private consultants.
“The government wants to strengthen the national
engineering capacity and BPPT can be the backbone for this,”
Vice President Jusuf Kalla said after witnessing the signing
ceremony for the agreement.
Energy and Mineral Resources Minister Sudirman Said
revealed that the agreement would be immediately effective.
“For now, BPPT will do the project planning and prepare the
engineering designs so that in October we can start the tender
process for projects to be carried out in 2016,” Sudirman said.
8
coal
news
September 2015
Indonesia Lowers 2015
Coal Production Target
on Weak Global Context
- 10 August 2015 -
Indonesia Investments, Jakarta - The government of
Indonesia lowered its coal production target for 2015 from
425 million tons to 400 million tons as most Indonesian coal
miners have cut production targets amid low global demand
and weak prices. Domestic coal demand has also reduced
primarily due to lower demand from state-owned power
company Perusahaan Listrik Negara (PLN). In the first half
of 2015, Indonesia (the world’s top thermal coal exporter)
produced 204 million tons according to the Ministry of Energy
and Mineral Resources.
Indonesia is the world’s top thermal exporter and therefore
fluctuations in the country’s domestic coal production can
influence global prices. However, in the current context,
lower output in Indonesia is not expected to support global
coal prices.
There are no signs that coal prices are to rebound on the
short or middle term amid persistent concerns about a global
supply glut in combination with expected declining coal
demand from China. In the first seven months of 2015, coal
prices have slid around 10 percent, touching a near-decade
low, and causing financial pressures for markets that are
major exporters of the fossil fuel that accounts for about half
Source: Indonesian Coal Mining Association (APBI)
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of the world’s electricity generation (these markets include
Indonesia, Australia and South Africa). Some analysts expect
coal prices to reach their bottom in 2016 provided that
capacity is removed from the market.
One of the major causes for the coal supply glut is falling
demand from China, the world’s second-largest economy
and largest energy consumer. In the first six months of 2015
China’s coal imports declined 37.5 percent (y/y) due to the
country’s support for domestic producers, tighter quality
limits on seaborne coal imports, and environmentally driven
causes. Energy consumption in China slowed to 0.7 percent
(y/y) in the first half of 2015.
Last week, the Indonesian Coal Mining Association (APBI) said
that nearly 80 percent of Indonesian coal mining companies
have temporarily ceased production as the production cost
margin has turned negative (meaning that the companies
lose money when they produce and sell coal). Particularly
for the smaller coal mining companies this is a problem
and bankruptcy is looming for many. There are currently
approximately 3,000 Mining Business Permit (IUP) holders in
Indonesia but only 500 are still active.
9
coal
news
September 2015
7 Nations Offer Their
Coal Mines to SCCL
- 19 August 2015 -
The Indian Express, Hyderabad - As many as seven countries
have expressed their willingness to lease out coal mines to
the Singareni Collieries Company Limited (SCCL) in response
its expression of interest for acquisition of thermal coal
abroad.
The SCCL invited global expression of interest on the
directive of chief minister K Chandrasekhar Rao to go in for
international coal mining.
Currently, the committee constituted by SCCL is vetting the
bid offers from seven countries. “We are looking into legal,
financial and technical aspects of the bids. Once the SCCL
board approves the bids, the company will acquire mines in
other countries,” sources said.
The bids were received for 13 mines in seven countries.
According to sources, three bids each from Australia and
Indonesia, two each from Mozambique and Botswana, and
one bid each from South Africa, Namibia and USA were
received by SCCL.
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“We are examining how much coal reserves the 13 mines
have, the legal aspects of the ownership and financial
viability,” the source said.
Bringing coal from the USA could be very expensive due to
transportation costs and the SCCL is likely to prefer countries
nearer India.
The cost of coal per tonne in international market is around
60 US dollars. “If SCCL leases mines outside the country
and operates on its own, its coal will be cheaper than the
imported coal,” the sources said.
The SCCL is planning to open 17 new mines in the coming
three years, three of them this year.
One mine will be at Ramagundam (RGOC-3) with a reserve of
5 lakh tonnes, the second, an open-cast mine, at Bellampalli
with 2 lakh-tonne reserves and the third, an underground
mine, will be at Kondapur in Khammam district.
10
coal
news
September 2015
Indonesia: Government
expects rising income from
coal despite weak output
- 22 August 2015 -
The Jakarta Post, Jakarta - The Energy and Mineral Resources
Ministry is expecting to see rising royalties and fees from
the mineral and coal sectors this year despite plunging
production due to low selling prices.
According to the proposed state budget for 2016, the non-tax
income from minerals and coal is targeted to reach Rp 40.82
trillion (US$3 billion), roughly a 28 percent jump compared
with this year’s target of Rp 31.7 trillion. Royalty payment
from the coal industry usually dominates contribution to
the total income from the mineral and coal sector. Although
income is expected to increase, the production plan is lower.
“The PNBP [non-tax income] for 2016 is based on a production
plan of 400 million tons of coal,” said Adhi Wibowo, the
director for coal at the Energy and Mineral Resources
Ministry’s mineral and coal department. The output target is
lower than the 425 million tons expected by the end of 2015.
For this year’s target, some argued that the figure would not
be achieved as production had been declining in the last few
months, meaning that the contribution target to the state
income would also be lower than targeted.
“As of Aug. 15, the non-tax income from the mineral and coal
sector reached Rp 19.7 trillion,” said Sri Rahardjo, the director
for program development at the mineral and coal office.
The total production during the January to July period of
that year was 232.9 million tons, declining by approximately
15 percent compared with 274.9 million tons in the same
period last year. Out of the total production, as many as
186.8 million tons were exported and only 46.1 million were
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delivered to the domestic market.
The narrowing margin between production and cost has been
seen as the main reason behind the output drop. Like other
coal miners in the world, Indonesian coal mining companies
are currently under pressure due to the plunging commodity
price. The plunge in prices is also caused by slowing demand
following weakening economic activities in countries that are
the world’s main consumers of the commodity, such as China
— with the yuan devaluation adding to the reasons for price
fluctuations.
Expectation on the recovery of the coal price has also been
shadowed by the current plunge in the price of crude oil,
which remains the main energy source in the world.
Indonesia, a major thermal local exporter, set its coal price
reference (HBA) for 6,322 kcal/kal coal at $59.14 per ton for
August, already 7.4 percent lower compared to a reference
price of $63.84 per ton set in January.
The global coal price has dropped around 10 percent this
year, extending losses after a bearish trend since late 2011,
according to figures from Bloomberg. The benchmark
Newcastle contracts were at $58.35 per ton on Tuesday, data
from Reuters showed.
The Indonesian Coal Mining Association (APBI) chairman
Pandu Sjahrir said that domestic coal production would
continue to drop further, between 17 and 25 percent by the
year’s end, due to weak prices and unfavorable regulations
in Indonesia. Therefore, he said, the total output would likely
be well below 400 million tons throughout this year.
11
coal
news
September 2015
Global coal prices seen
below $50 metric ton as
output fails to ease
- 28 August 2015 -
Financial Review / Bloomberg - Coal may drop below $US50
a metric ton this year as a supply glut combines with a slide in
emerging market currencies that supports exports.
The US dollar’s gain to near its highest since at least 2005
against a basket of 10 leading currencies shielded earnings
for producers from Australia to Colombia. China, the world’s
biggest user, is turning to cleaner alternatives including
hydroelectric dams to battle pollution that is killing 1.6
million people a year. Global seaborne supply will grow 1.2
per cent this year, while demand may shrink 2.8 per cent,
according to Deutsche Bank.
“Demand is falling everywhere, yet production is still rising
in a lot of places,” Thomas Pugh, an economist in London at
Capital Economics, said by phone August 20. “A lot of that
is due to currency movement, due to the fall in oil prices,
especially in places like Russia, Colombia, Australia.”
Benchmark next-year coal in Europe may drop as low as
$US45 before rising to $US53 a ton by year-end, according to
Diana Bacila, an analyst in Oslo at Nena. While prices below
$US50 are “not sustainable”, they may fall below that level
before the end of the year, said Eugen Weinberg, an analyst
in Frankfurt at Commerzbank.
Coal in Europe fell for an eighth week through August 21,
its longest losing streak since January, according to broker
data compiled by Bloomberg. The contract rose 1.1 per cent
to $US52.40 a ton by 12.29pm London time on Thursday,
trimming its drop from a record in July 2008 to 76 per cent.
The world’s five largest exporters increased sales in the first
half of this year, with combined shipments from Indonesia,
Australia, Russia, Colombia and South Africa gaining 0.1 per
cent to 343 million tons, government data and estimates
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Quality with Integrity
from Bloomberg Intelligence show. The boost may help turn
a 34 million ton shortfall in the seaborne market in 2014 to
a surplus of 10 million tons this year, according to Deutsche
Bank. Oil’s decline to a six-year low also reduced operating
costs at mines.
After further slides in the next few months, European next-
year coal will stabilise and end the year at $US52.50, 1.3 per
cent above Wednesday’s price, according to the median of
seven analyst estimates compiled by Bloomberg. UK coal
imports in June fell to 1.3 million tons, the least since August
1999, according to Department of Energy data.
Exports from Colombia slipped by 4.6 per cent to 38 million
tons in the first half as restrictions on transporting the mineral
by rail at night in some parts of the country interrupted the
flow of coal to ports.
“It is possible Colombia will increase exports in the second
half of 2015 as nighttime rail bans are expected to end,” Ted
O’Brien, chief executive officer of Doyle Trading Consultants,
said by email August 18.
Demand from China, the world’s largest consumer of raw
materials, fell by 25 million tons, or 31 per cent, to 54 million
tons in the first half, the biggest drop since at least 2009.
While Indian imports rose by 23 million tons, or 35 per cent,
to 88 million tons in the six-month period, surging domestic
output probably means demand will shrink, Coal Secretary
Anil Swarup said August 12.
Global coal prices “can probably go quite a lot lower,” Pugh
said. “A lot of it is the downward pressure from a lack of
demand in China, the US and Europe. India’s the most recent
one: everyone’s been banking on India to take up the slack
and it appears they’re just not doing that.”
12
minerals
news
September 2015
Indonesia’s Timah Says Rule
Delays to Halt Tin Exports Until
Mid-Aug
- 1 August 2015 -
Reuters, Jakarta - Indonesia’s Timah will be unable to export
tin for much of August due to bureaucratic delays in the
implementation of new rules for shipments, a senior official
at the country’s top tin miner said on Thursday.
Indonesia, the world’s top exporter of the solder material, is
introducing new rules for shipments from Aug. 1, but delays
in the issuing of export documents by the mines ministry
could impede all exports.
“Earliest mid-August or latest by end of August,” Corporate
Secretary Agung Nugroho told Reuters in a text when asked
when Timah would be able to make shipments next month.
A new license that will track export volumes for individual
companies was still to be issued by the mines ministry,
said Nugroho, adding that it would likely be completed this
week but then take a month to be rolled out. Indonesia is
tightening its rules for tin shipments in a fresh bid to crack
down on environmental damage and smuggling, and to
enforce payment of royalties and taxes on shipments.
The Southeast Asian country is concerned about the scale
of illegal tin mining and smuggling, while green groups
and electronics firms have expressed worries over the
environmental damage it can cause.
The new government rules, which were first announced in
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Quality with Integrity
May, also include the need for tin producers to hold “clean
and clear” (CnC) certification from Nov. 1 to show that the
tin ore they use originates from government-certified mines.
Government guidance for tin exporters was unclear, Jabin
Sufianto, president of the Indonesian Association of Tin
Exporters (AETI) told Reuters, adding that discrepancies
were found in separate trade and mines ministry tin decrees
relating to the new rules.
“This will cause all exporters to not be able to export (from)
Aug. 1,” Sufianto said about the delays, adding that his group
had held two meetings with the mines ministry to discuss the
matter.
Coal and Minerals Director General Bambang Gatot told
reporters this week that the mines ministry was processing
the registration of tin exporters “one by one”, but said he was
unable to say how many had been completed.
Benchmark tin hit $16,345 a tonne earlier this week, its
highest since May 6 and a gain of more than 20 percent since
the contract hit a six-year low of $13,365 on June 30. Given
that tin suppliers have been ramping up exports ahead of
the change in rules, any impact on supply was likely to be
minimal for a disruption lasting less than three months, said
a Shanghai based trader.
13
minerals
news
September 2015
Steel Industries Ready
to Support Power
Transmission Project
- 1 August 2015 -
The Jakarta Post, Jakarta - National industries have been
able to meet the government’s demand for steel for the
development of its 46,597-kilometer power transmission
project, according to Industry Minister Saleh Husin.
“The development plan consists of power transmission
networks of 150 kilovolts, 275 kilovolts, and 500 kilovolts.
They will be built within a ten-year period from 2015 to 2024.
The 150-kilovolt transmission network will be the longest of
them all, covering a distance of up to 40,413 kilometers,” the
minister told the press on Friday.
Considering the length of the project, Husin predicted that
the transmission network will require a large number of
components, which can be produced by industries at home.
“For instance, the 150-kilovolt transmission network will
need three units of towers in a one-kilometer stretch. Each
tower will weigh 10 tons, which will bring the total to 30
tons per kilometer. So it is clear that the transmission power
project will boost the business of state-owned steelcompany
PT Krakatau Steel and other steel industries in the country,”
he affirmed.
Moreover, Husin pointed out that components for the towers
will consist of 86 percent elbow L iron profile, 10 percent
plate iron profile, and 4 percent bolts. National component
producers will benefit from this project, such as cord
conductor and ceramic insulator producers. The need for
these two components stands at 9.3 tons per kilometer and
346 units per kilometer, respectively.
The 275-kilovolt transmission network will be composed
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of 2.5 units of towers per kilometer, weighing 45 tons per
kilometer. The 500-kilovolt transmission network will need
two units of towers per kilometer, weighing 80 tons per
kilometer. Besides electric towers, cables, and ceramic
insulators, the project will have other requirements, such as
fittings and accessories.
Furthermore, Vice President Jusuf Kalla said on Thursday
that the government will accelerate the implementation of
the plan to build 46,000 kilometers of power transmission
networks, as part of its plan to build power generating plants
with a total capacity of 35,000 megawatts by 2019. The plan
was discussed during a meeting of related ministers led by
Vice President Jusuf Kalla on Thursday.
“We met to discuss the plan to build power plants with a
total capacity of 35,000 megawatts and 46,000 kilometers of
transmission networks,” Husin stated after the meeting.
The transmission systems will be built with the involvement
of the private sector, he noted. A director of national power
utility PLN Sofyan Basir pointed out that the transmission
systems will be completed within three to four years and
will be ready when the construction of the power plants is
completed.
“All factors were taken into account, including standards and
the price of power. It will be of help to PLN to prevent problems
in the field,” Basir remarked. The greatest challenges in the
implementation of the power plant project are licensing and
land clearing, he added.
14
minerals
news
September 2015
Antam’s Sales Surge in H1 as
Vale Indonesia’s Declines
- 3 August 2015 -
Globe Asia, Jakarta - State-owned mining firm Aneka
Tambang’s unaudited net sales nearly doubled during the
first half of 2015 on the back of a surge in gold sales in the
country, boosting its stock price by 3.2 percent during the
first trading session on Monday.
In an official statement received by GlobeAsia on Monday,
Aneka Tambang — better known as Antam — reported Rp
7.89 trillion ($584 million) in unaudited net sales over the
January-June period this year, a 98-percent year-on-year
increase from the same period last year.
Gold sales at Antam rose by almost threefold to Rp 5.6
trillion, accounting for 72 percent of Antam’s total revenues.
By volume, the company sold 10,996 kilograms of gold, up
180 percent compared to the same period last year.
Ferronickel sales, which was the second-largest contributor
to Antam’s total sales, increased by 13 percent to Rp 1.97
trillion. The sales of ferronickel — an alloy of iron and nickel
— also saw an increase in terms of volume, climbing by 25
percent to 9,443 tons of nickel contained in the ferronickel
(TNi) alloy.
Antam has not yet released the official audited figures of its
first-half financial results. Following the report, shares of
Antam jumped 3.2 percent to Rp 490 each on the Indonesia
Stock Exchange (IDX), as of the first trading session.
Vale Indonesia, a nickel miner, was not able to present a
similarly rosy overall sales picture.
The local unit of Brazilian mining giant Vale booked a
38.5-percent decrease in profit in the first half of 2015 to
$41.8 million as sales declined 15 percent to about $410
million. Nico Kanter, chief executive officer and president
director at Vale Indonesia, attributed the fall to weak nickel
prices, which slumped 11 percent between April and June
compared to the previous quarter.
The company’s cost of revenue dropped 7.84 percent in the
first half 2015 to $328.96 million, while operating expenses
dropped 8.54 percent to $6.47 million. Other expenses —
such as project development costs and foreign-exchange
adjustments — fell 36.15 percent to $13.11 million, dragged
down by a $7 million foreign-exchange loss.
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Freeport’s Export Halted
Due to Letter-of-Credit
Predicament
- 11 August 2015 -
Tempo.co, Jakarta - Freeport Indonesia, the local unit of
US mining giant Freeport McMoRan, has halted its copper
concentrate export after its letter-of-credit suspension
expired in July, the company’s spokesman said on Monday.
Riza Pratama, Freeport Indonesia’s spokesman, said that
the company had attempted to get another extension of the
letter-of-credit suspension from the Trade Ministry since last
week. However, the ministry had not responded, he said.
“We are still waiting for the letter from the Trade Ministry,”
Riza said on Monday.
The government had previously issued the suspension to
Freeport for a six-month period, which expired on July 25.
The suspension was intended to allow the miner to continue
its copper concentrate export. Riza refused to give details on
the losses Freeport was suffering due to the stalled exports.
“We hope we can start exporting again soon,” he said,
without giving details on the amount of concentrate waiting
to be shipped abroad.
Riza said there is no obligation to use letters of credit under
Freeport’s current working contract with the government,
but that the company wanted to make a point of strictly
complying with all of the ministry’s regulations. The
mechanism is based on a regulation that the Trade Ministry
issued in 2015 on the use of letters of credit for exports of
specific goods.
The regulation stipulates that exports of commodities, such
as mineral, coal, oil and gas and crude palm oil must use
letters of credit issued by a domestic foreign-exchange bank
— lenders that are allowed by the central bank to perform
international transactions. The government wrote the
regulation in an attempt to ensure exporters keep orderly
foreign-exchange records.
Freeport secured a permit to export 775,000 tons of copper
concentrate for the next six months and had its export duties
decreased from 7.5 to 5 percent, following the construction
of its smelter facility in Gresik, East Java.
15
minerals
news
September 2015
Here is how Rio Tinto intends to
cut costs by $1 billion
- 6 August 2015 -
Mining.com - Mining giant Rio Tinto (LON, NYSE:RIO) shook
the market last week after announcing it was targeting
savings of $1bn in 2015, an increase of $250 million on its
previous goal, because of the tough market conditions.
To achieve such goal, the miner is watching every single
expense, including those related to safety equipment.
Rio has began placing safety glasses and gloves in vending
machines that require a staff access card to withdraw them.
In an interview with Australian Financial Review (subs.
required), the miner’s iron ore boss, Andrew Harding,
revealed that Rio has began placing safety glasses and
gloves in vending machines that require a staff access card
to withdraw them.
“There is no restriction on them – it’s safety equipment,”
Harding was quoted as saying. “But instead of someone
going ‘this is unlimited, what the hell’ kind of thinking, it
reminds people that it’s an important item, contributing to
cost reductions.”
The plan has reduced safety equipment use between 15%
and 20% at some iron ore operations, Harding noted, while
almost halving usage of some items at others. “That saves
Rio millions of dollars each year,” the executive said.
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The Melbourne-based company is also cutting overtime and
pushing out truck equipment component life.
In the first six months of the year, Rio reported last week
underlying earnings of $2.9bn, down from $5.1bn over the
same period in 2014. This was driven by a 50% in underlying
earnings from iron ore the company’s most important
division by far.
To give an idea of just how reliant it has become on the
fortunes of the steel making material, Rio calculated that
every 10% movement in iron ore price has a $1 billion impact
on Rio’s underlying earnings. The same ratio for copper is
only $183 million.
Rio Tinto is also betting on lower energy prices and a further
weakening of the Australian and Canadian dollars to help it
reduce capital expenditure to $5.5bn this year and $6bn in
2016. Previous guidance was for spending of about $7bn in
both years.
Still, the figures represent less than half what Rio was
spending as recently as 2012 as it looked to meet a seemingly
insatiable demand from China by bringing new projects on
stream.
16
minerals
news
September 2015
G-Resources Strikes H1 Gold
Amid Price Slump
- 20 August 2015 -
Globe Asia, Jakarta - G-Resources Group, a Hong Kong-based
gold and silver miner operating the Martabe mine in North
Sumatra, reported robust profit growth in the first half of the
year despite a price decline in both commodities, thanks to
the company’s cost-trimming efforts in its Indonesian units.
Net profit at G-Resources rose 15 percent to $39 million
from $34 million in the same period last year, according to a
company statement released on Wednesday.
Earnings before taxes, interest, depreciation and
amortization (Ebitda) reached $130 million, up 16 percent
from $112.5 million in 2014.
“The strong operating and financial performance in these
six months has been against the backdrop of weakening
gold and silver prices,” Tim Duffy, president director of
G-Resources Group’s local unit Agincourt Resources, said in
the statement.
During the first half of the year, production from the Martabe
mine stood at 156,316 ounces of gold and about 1.3 million
ounces of silver, up 16 percent and 23 percent respectively
from last year. Meanwhile, average gold prices stood at
$1,207 per ounce during the first half of the year, compared
to $1,284 per ounce in 2014.
“The management team has continued to deliver on cost
reduction via the Martabe Improvement Program,” Duffy
said, referring to a site-wide program aimed at increasing
volumes and reducing costs to maximize the operational
results and competitive position of Martabe Gold Mine.
The company managed to cut all-in sustaining cost sto $520
per ounce sold, from $695 per ounce sold in the same period
a year ago, he added.
G-Resources owns Martabe gold and silver mine, which
covers an area of about 1,639 square kilometers. The mining
site started production in early 2013 with the annual capacity
to produce up to 25,000 ounces of gold and up to 3 million
ounces of silver.
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Freeport still unable to export
concentrates
- 22 August 2015 -
The Jakarta Post, Jakarta - Copper and gold miner PT
Freeport Indonesia (PTFI), a subsidiary of US-based giant
mining firm Freeport McMoRan Inc., still may not export
concentrates as it is not ready to implement a Trade Ministry
regulation on the mandatory use of letters of credits (L/C) for
mineral exports, an energy and mineral resources official has
said.
The Energy and Mineral Resources Ministry’s director general
for minerals and coal, Bambang Gatot Ariyono, said in
general, Indonesia’s mining companies, especially Freeport,
had not yet agreed on the mandatory use of L/C for their
overseas shipments.
He said Freeport had submitted an L/C mandatory use delay
request letter to the Trade Ministry so the company could
immediately carry out concentrate shipments for its export
markets.
“Yes, it has not yet agreed [to the mandatory use of L/C). Most
mining companies have not yet agreed to it; however, it is the
government’s policy that the application of L/C in mineral
and coal exports is required,” Bambang said as quoted by
kompas.com on Saturday. He was speaking at the ministry’s
mineral and coal directorate general on Friday.
Bambang said all mining companies must adhere to the
regulation although he acknowledged that the application of
L/C in exports would lead to additional costs.
Bambang said Freeport’s production activities still ran
normally although it could not yet export its concentrates.
However, a prolonged delay in exports would lead to the
piling up of concentrates.
“I don’t know how long they will remain in production
because they have not yet communicated about it with us.
This indicates that the situation is not yet as bad as many
assume,” he said.
17
minerals
news
September 2015
RPT-Freeport says Indonesia
copper exports dry up on
payment impasse
- 25 August 2015 -
Reuters, Jakarta - Freeport-McMoran said exports of copper
from its giant Indonesian mine have slowed to a trickle over
the past month as it faces new rules on how buyers pay for
metal, with the government showing no sign of handing it a
second waiver.
Freeport, which is one of Indonesia’s biggest tax payers, won
a six-month exemption from new rules introduced this year
making it compulsory for exports of coal, palm oil, oil and gas
and minerals to be transacted through letters of credit issued
by domestic banks.
The U.S. miner said almost all exports of copper concentrate
from its Grasberg mine had been halted since the exemption
expired on July 25 and it was currently in talks with both its
buyers and the Indonesian government.
“We are gradually working with our buyers to change their
method of payment,” Freeport Indonesia spokesman Riza
Pratama told Reuters on Tuesday. “Hopefully we will get
this matter resolved very soon. We are talking with the
government so we can continue our exports.”
International buyers and traders often pay Freeport directly
or in advance, without going through the Indonesian banking
system. The dispute is the longest disruption to shipments
since a seven-month stoppage last year when Indonesia
imposed an escalating tax on metal concentrates.
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Freeport exports about 60 percent of the estimated 2 million
tonnes of concentrate produced each year at Grasberg, one
of the world’s biggest mines, while the rest is smelted locally
into metal. Mines Ministry Coal and Minerals Director General
Bambang Gatot said any fresh exemption for Freeport would
be decided by the trade ministry.
“Every company is supposed to comply with this regulation,”
he said, adding that Newmont Mining Corp, Indonesia’s
second largest copper miner, seemed to be complying with
the new rules without problems.
Karyanto Suprih, acting director general for foreign trade at
the trade ministry, told Reuters: “So far, there is no instruction
to give an exemption on this LC obligation for mineral or coal
exports.” Operations at Freeport’s mine in remote Papua
were running normally, Albar Sabang, a senior official at a
Freeport union said late last week.
Under normal conditions, Grasberg produces about 220,000
tonnes of copper ore per day, which is converted to copper
concentrate. Freeport’s Pratama said the miner would need
more space for stockpiling “very soon” but could not give a
timeframe.
Rio Tinto has a joint venture with Freeport for a 40 per cent
share of Grasberg’s production above specific levels until
2021, and 40 per cent of all production after 2021.
18
minerals
news
September 2015
Indonesia to keep ban on
nickel ore exports - govt
officials
- 31 August 2015 -
Reuters, Jakarta - Indonesia will keep its export ban on nickel
ore, contrary to recent media reports suggesting the country
may relax curbs to prop up its slowing economy, senior
government officials said.
Indonesia banned exports of unprocessed metal ores in early
2014 to force firms to develop smelters that would add value
to the country’s resources and create jobs. But the curbs cost
the country billions of dollars in lost revenue last year.
While there are signs the government is trying to bring more
money back into resources, the Chief Economics Minister
Darmin Nasution warned against speculation that the
country would relax its nickel ore export ban.
Indonesia will seek consistency in its mining policies, he said
on Tuesday, a view echoed by Mining Minister Sudirman Said.
“What we’re doing is looking for incentive to boost economic
activities in nickel and bauxite business. How to help smelter
projects run smoothly and finish, as per our target,” Said said,
adding there was no easing of the nickel ore export ban.
On Monday, Bisnis Indonesia newspaper reported that the
country may relax export rules for both bauxite and nickel,
quoting Director of Coal at the Energy Ministry, Adhi Wibowo.
Wibowo could not be reached for a comment on Tuesday.
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The government has previously said it was looking to push
back a 2017 deadline banning copper concentrates exports
and could ease its ban on bauxite exports. But according to
Coal and Minerals Director General Bambang Gatot, there is
no plan to provide an exception to the ban on unprocessed
nickel or bauxite exports.
Indonesia is evaluating domestic smelter construction that it
hopes to complete this month, he said. “We’ll see the results
of the evaluation first.”
Economic growth in Indonesia is at a six-year trough, with the
rupiah at a 17-year low, as the country struggles with weaker
commodity prices and souring investor sentiment.
Before the ore ban, Indonesia was the world’s top exporter
of nickel ore and biggest supplier to China. Restarting nickel
exports could erode the market share of other producers,
such as in the Philippines, that stepped in to fill the supply
gap. Leading nickel miners in Indonesia include Vale
Indonesia and PT Aneka Tambang.
If exports were allowed now, nickel producers would not earn
much as global nickel prices are near multi-year lows, said
Susantyo, chairman at the Indonesian Nickel Association.
“Rumors of easing bans often come up but if there is a
relaxation, it would mean the government is not consistent.”
19
September 2015

Tips of
the Month

Calculation of Resource

Computer programs for resource calculation and assessment
are very popular and time saving however the capacity to
make errors at this stage is quite real. Remember an earlier
piece of advice “Computers can’t think, they just do as they
are told.”
One must always be mindful of pieces of instruction built
into programs which may be forgotten or not known of.
Sometimes the program will want to project coal crop lines
beyond reality. This then impacts on Measured, Indicated
and Inferred areas of influence.
Remember how in the very early days of computer
simulations of surface contours, data was fed in and the
ground contours calculated. On occasions drill hole collar
points were left standing in the air from a “best fit “ program!
• Determine as best as possible geologically from surface
mapping or drilling where the seam sub-crop occurs not
where the computer program might want to place it!
• If your company is assessing coal resources (for an
investment possibility) in an operating open cut mine,
calculate the remaining resources tonnages from the
base of the current pit high wall and remaining sub-
cropline down dip into the bulk of the deposit. Do
NOT use a computer generated sub-cropline as a start
and then deduct advised resource tonnages mined
to date (deduced from RoM tonnages as “Reserves”,
to give a “Resources” figure). The company may have
started mining close to the crop line and back dumped
overburden on top of unmined coal. This will give a false
value of Resource tonnages available for future mining.

• Make sure that your computer program doesn’t show

Tips areas of influence projected beyond actual crop lines.
When your company is having an extensive drilling and This will certainly give fictitious results!
sampling program it is useful to consider the following points.
• Do your own manual down dip and along strike
correlation of coal seams to gain some idea of structure
of deposit. Note possible “washouts” particularly in
areas down dip from apparent seam crop. Note any hole
terminations in basement.

• When setting up your program make sure the computer Antony H. Osman
is aware of basement intersections (if not noted, FAusIMM (CP) MMICA MAIMVA (CMV) FGS
some work seen by this writer showed a false seam JORC and KCMI accredited
“continuity” through a drill site location, when an Senior Geological Adviser
inclusion of a basement high had been neglected. A member of PERHAPI, IAGI & MGEI

*****************

For a non-obligatory discussion of all your coal deposit exploration and evaluation matters, for expert opinions on the
content and presentation of your company’s report, please contact: coal.tech@carsurin.com or coal.ops@carsurin.com
at the CARSURIN Coal and Minerals Division.

CARSURIN www.carsurin.com 20
Quality with Integrity
September 2015
Australasia October 2015 Public Holidays
Australia
- 14: Muharram / Islamic New year
China
1: National Day
2-7: National Day Golden Week
Hong kong
1: National Day of People’s
Republic of China
21: Chung Yeung Festival
HISTORY
Carsurin was founded in 1968
by Captain Hein Christopher
Tiwan as Indonesia’s first
private company specializing
in independent surveying and
superintending services for
the maritime and petroleum
industries.
Since its inception, Carsurin
has been dedicated to meeting
the needs of its clients whilst
delivering services with quality
and integrity.
As Indonesia’ leading
independent surveying and
superintending services
company, our corporate culture
is based upon 5 universal and
easily understood values:
Integrity
We will not compromise our
integrity when delivering our
services to our clients
Quality
We will provide our services
with adherence to the highest
standards of quality achievable
Commitment
We are committed to delivering
our services in a professional
manner
Determination
We are determined to work
hand in hand with our clients to
provide long-term solutions and
services that are in their best
interests
Development
We are committed to
continuous development in
human capital
PT. CARSURIN makes no warranties as to the accuracy of the information and assumes no liability when information is used in any way or form.
Indonesia
Japan
12: Sports Day
Thailand
23: Chulalongkorn Day
Coal & Minerals Services:
• Geology survey, Mapping,
Drilling, etc
• Quality Control for mines
production
• Laboratory Services
• Shipment survey (Quality &
Quantity)
• Export Verification
• Maritime inspection
ISPS Services:
• Internal audit (minimum once
a year)
• Training (as required, for refresh-
ing, change of PFSO, etc)
• Drill (minimum once in 3 months)
• Exercise (minimum once in a
year)
• Assessing and planning for ports
and ships security worldwide
according to the ISPS Code.
• Reviewing / revising of PFSP,
re-assessment of PFSA if needed
• Consultancy
LLOYD’S AGENCY :
• Pre-shipment and Out Turn
Surveys
• Marine, Vessel and Cargo Dam-
age Surveys
• Claims Investigation and
Settlement
• Vessel Movements and Casual-
ties Reporting
• Storage / Warehouse Risk Assess-
ment Surveys.
PETROLEUM & CHEMICAL Services:
• Loading and Discharging Super-
vision for Crude Oil, Petroleum
Product, Petrochemical and
Oleo chemical
• Sampling and expediting for
Crude Oil, Petroleum Product,
Petrochemical and Oleo
chemical
• ROB Bunker Survey
• Pre-shipment Inspection
• Tank Cleanliness Inspection
• Wall wash test
• Inventory Taking
• Gas Free Inspection and Certi-
fication
• Investigation survey for Cargo
Oil losses
COPYRIGHT © 2015, PT. CARSURIN
India
15: Independence Day
Singapore
-
South Korea
3: National Foundation Day
9: Hangeul Proclamation Day
MARINE & CARGO Services: PALM OIL Services:
• Pre-Hire Survey • Loading & discharging
• On / Off Hire Survey • Quantity & Quality determi-
• Draught Survey nation
• Towing and Lashing Survey • Remaining on board inspection
• Investigation Survey • Sampling & analysis
• Condition Survey : • Losses investigation
- Pre-entry • Tank cleaning inspection
- Pre-purchase
- Follow up COTTON Services:
- Valuation • Seal Breaking
- Suitability • Devanning
• Hull and Machinery Survey • Tally
• Cargo Hold Cleanliness • Weighing
• Bunker Survey (Quantity & • Sampling
Quality) • Taring
• Project Cargo Management • Surveying / inspection
• Container Inspection • Sorting of bales to mark
• Damage Survey (Cargo & Vessel)
• Weighing & Measurement OIL & GAS Services:
• Nautical Inspection for the : • Inspection & Certification
- Panama Bureau of Shipping - Pressure Vessels
- Bahamas Maritime Authority - Cranes / Lifting Gear
• Ship Repairer’s Liability - Pressure Safety Valves
• Loss of Hire - Welding Inspection
• Tally and Condition Survey • Calibration of ATG
• Container Inspection • Non Destructive Test
• Stuffing / Unstuffing and Seals / • Man Power Supply
Unsealing • Maintenance
• Preshipment and Preloading - Mechanical / Electrical
Condition - Engineering
• Weighing and Measuring - Painting and Blasting
• Pre-breakbulk, Opening Seals/ - Fire Proofing
Unsealing • EPCI Project Management
• Cargo Damage Survey
• Cargo Quantity / Quality
• Port Captaincy
CARSURIN
Quality With Integrity
Wisma 77, Tower 2, 19th Floor
Jl. Letjen S. Parman Kav. 77 - Slipi
Jakarta 11410 — INDONESIA
Ph: +62.21.2967.5868 | Fax: +62.21.2967.5818
E: cm-marketing@carsurin.com, minerals@carsurin.com
www.carsurin.com