Marketing Information

In more than 18 years of operation, PT Arutmin Indonesia's coals have become well-established internationally. Arutmin is one of Indonesia's largest coal-exporting majors. In 2007 it exported just under a tenth of all Indonesian coal exports and was the 3rd largest of 27 private coal exporters in Indonesia.

Arutmin has a stable customer base. Most products are sold in large quantities to well-established power and industrial utilities. Traditionally about 10 customers account for the dominant share of yearly sales. Most coal is exported to Asia, notably Japan.

Reflecting the established nature of Arutmin trade, most sales are by long term contracts rather than spot contracts. Arutmin retains a buffer stock for sales into the spot market on an opportunistic basis.

Arutmin benefits from the fact that Indonesia's location makes it a logical major supplier to the Asian region. Indonesia sends more than 80% of its coal to Asia.

At Arutmin's mines in Satui, Senakin, Batulicin, Mulia, and Asam-asam, eight different coal products are produced. Such a variety of coal products is a strategic advantage for Arutmin, allowing it to offer the market:

1. High quality coal,
2. Environmentally friendly lower rank coal and
3. Blended products to suit customers specification.

Arutmin coal products have excellent combustion characterstics due to their high reactivity making them ideally suited for consumption in Power Stations and Industrial Plants.

Arutmin's Block 6 concession contains extensive reserves of quality bituminous coal and environmentally friendly sub-bituminous coal.

The Senakin, Satui, and Batulicin mines produce quality bituminous products. These have generally low ash and sulphur contents with high energy content.

Arutmin can blend the variety of products within its coal seams to suit customer needs.

The Mulia and Asam-asam mines produce environmentally friendly Ecocoal. It has lower energy with exceptionally low ash and sulphur contents which render it clean-burning.

Ecocoal means Ecology Coal, blessed with low impurities in particular low ash (5.5% air dried) and low sulfur (0.3% air dried).

Ecocoal allows power stations to meet SOx and NOx emission regulations without the need to install or to operate costly FGD and NOx scrubber plants. Superior combustion properties of Ecocoal result in reliable and efficient boiler operation.

Ecocoal is relatively softer, up to 50% less than other Indonesian low rank coals. This means improved milling performance, mill energy consumption and combustion burnout.