JAKARTA: PT Adaro Energy, one of Indonesian coal miners, produced 42.20 million tons of coal in 2010, a 4% increase from 40.59 million tons in the previous year.The 2010's coal production reached 94% of its target of 45 million tons despite rainfall and number of rain days.In an official statement submitted to Indonesia Stock Exchange (IDX) tonight, production from the new Wara pit was less affected as it is in the initial stages of development and benefited from a low overburden stripping ratio.Adaro's coal sales volume increased 6% to 43.84 million tons last year from 41.40 million tons in the previous year. These sales includes the third party coal sales sold by Coaltrade of 1.39 million tons and Envirocoal-Wara of 2.05 million tons.The miner plans to ramp up production to 46 million tons-48 million tons of coal, including 4 million tons-5 million tons of Envirocoal-Wara. This new product continues to receive strong demand from countries such as India, China, South Korea, and Indonesia.Coal mining & overburdenPT Pamapersada Nusantara, a wholly owned subsidiary of PT United Tractors Tbk (UNTR), was responsible for 39% of Adaro Indonesias coal last year.PT Bukit Makmur Mandiri Utama (BUMA), a wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID) and PT Rahman Abdijaya (RAJ) were responsible for 19% and 14% respectively. Slightly less than 2009, Adaro Energys subsidiary PT Saptaindra Sejati (SIS) managed 25% of the total while Adaro Indonesia itself handled 1%. PT Rante Mutiara Insani (RMI) assisted in the development of the Envirocoal-Wara pit and contributed 2% of Adaro Indonesias coal production.In 2010, Pamapersada handled 40% of Adaros overburden, while BUMA, RAJ, RMI and Adaro Indonesia handled 19%, 8%, 2% and 1% respectively. SIS handled 30%, a similar portion as the 31% handled in 2009. Despite the wet conditions, overburden removal increased 10% in 4Q10 to 60.35 million bank cubic meter (bcm). The average overburden removal per day was 710,000 bcm, 616,000 bcm and 648,000 bcm in October, November and December, respectively last year. A new daily production overburden record of 915,000 bcm was set on October 23rd.In 2010, overburden removal increased 8% to 226 million bcm, however due primarily to the impact of wet weather Adaros contractors achieved only 88% of the plan. The rate of increase was well below the 31% increase in 2009, indicating the impact of not having a dry season in 2010. (wiw)

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