We are one of the pioneers of shortlisted
miners
which
successfully
penetrating the locked territories of coal deposit which is Central
Kalimantan. We came to the realization that by refocusing our business
to the supporting industry, while moving to joint venture efforts with
locals who already secured the licenses for their coal concessions, we
could avoid dealing with the dwindling process of securing our grown
forestry permits. Logistic became the next biggest problem and we're
grateful that our intensive research paid off. One of the reasons why we
decided to basically become more of a coal trading than pure miners
was because we've seen that many Central Kalimantan miners back then
were lucky if they can deliver up to 10,000 tons of coal per year to
Banjarmasin. With our infrastructures and 'know how', they can deliver
more.
As buyers also understand the dire
logistic difficulties of Central Kalimantan, resulting in the
uncertainty of supply, the hardship of ensuring demand was a
consequence. In addition, the cost of heavy equipment delivery to
Central Kalimantan can reached up to hundreds of millions of rupiah with
return process taking more time than if delivery is to be made to the
East or South Kalimantan, resulting in the lack of heavy equipments
supplies. Through shraeholding contracts, financial commitments and
joint venture efforts, company manages to set up coal mining units that
can produce up to 300,000 tons of coal every annum. While having the
capacity to purchase coal outputs, big or small, from mines at the
Barito watershed of Central Kalimantan, the company also make the
initiative of taking the produced coal directly from the mines with its
managed tug and barge units when miners complained that they can't
deliver the coal through Barito River. However, such growth is deemed
impossible if the lingering logistic problems remain unsolved. MS Coal
spilled out the solutions. The group's core solution consists of two
aspects, one of which is its four ports strategically located on four
strategic points along the Barito River.
Not all miners have the needed tug and barge
units at their diposal or the courage to sail down the Barito River, so
it is one of our ways to help them out. And it was because of MS Coal's
continuous positive performance throughout the years, its ability to
ensure supply at a maintained high quality output with fixed delivery
time, that the group has managed to gain trusts from buyers, resulting
in its ability to ensure market for its coal. We were undoubtedly one of
the first companies to set up an intermediate stockpile port in the
area, and due to that also, we have the capacity to carefully decide the
extra area back then. Adding that one and a half years of research
revealed that the Timbau port can not sit in a more strategic location.
According to the company, it was the first point where the Barito River
reached a sufficient depth for a barge of 320-feet size can pass,
maintaining a width of 360 meters at all seasons. The Timbau port
attained a special permit and is set up on 6 hectares of land in up to
24 hectares of port area, and consists of two truck unloading jetties
and one conveyor loading jetty.
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Its monthly capacity reaches between
270,000 tons of throughput in and out or 120,000 - 150,000 tons of coal
cargoes. The company's remaining ports are barge feeder ports located in
the northern parts of Barito River, one of which is Pangku Ports about
268.5 nautical miles from Barito river mouth. with 6 hectares of port
area, the facility is completed with specifically designed loading
conveyors at the loading rate between 5,000 to 1,000 tons per hour.
The remaining two barge feeder ports maintained by the group are also
located in the territories, namely Bintang Tinggi and Luwe Hulu port.
The second aspect of Mitrada's core solution is its developed system to
predict the seasonal depth of Barito River and the adjusted course
guideline. Basically, our system prepares four to six days prediction of
Barito River's depth between two points, our feeder ports and
intermediate stockpile. This then simplified into three types of depths.
From there, it prepares the adjusted course for the hug and barge units
to follow sail. Mitrada's automatic course system was stated to be the
results of consistent and detailed research, turning threat into
opportunities. The simplest example is that more locals have started to
invest in tug and barge units, proposing to be new barge operators for
us. This in turns boost up our spirit, not only because the course work,
but also because they trust us. Our partnership principle works like
how friendship works. We trust our friends, want them to grow along with
us and we try to do whatever we can to help them.
On the other end, friends work hand in hand to ensure smooth operations,
because both parties are concerned. So far, we obtained the mos amazing
partnerships through this method. The company sells up to 1 millions
tons of coal in 2011, expecting to double its sales quantity this year.
We received many joint cooperation requests, but we want to expand in
stages, which is part of our core values as a group.
In additional to sell
coal to the domestic market, it's biggest market so far is China, with
India to become the second largest market. The company is also in the
midst of preparing an expansion blue print of its Timbau port, expecting
to enhance the intermediate stockpile transit port with the latest
automated technology, installing it with additional conveyor jetties,
more truck unloading facilities as well as completing it with blending
facilities to be able to accommodate blending of various types of coal.
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