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Adaro to renegotiate coal cooperation agreement

World Coal,

Adaro Energy has announced that on September 18, 2014, PT Adaro Indonesia (AI), entered into a Memorandum of Understanding (MoU) with the Director General of Minerals and Coal, of the Ministry of Energy and Mineral Resources of the government of the Republic of Indonesia.

Coal Cooperation Agreement

The MoU was signed in the framework of the renegotiation process to adjust the Coal Cooperation Agreement (CCA) as mandated by Article 169 of Law No. 4 of 2009 on Mineral and Coal Mining, which is preceded by an agreement of six strategic issues:

  1. CCA area
  2. The continuation of Mining Operations
  3. State Revenue
  4. Obligations of Domestic Processing
  5. Obligations to Divest
  6. Use of Local Labor, Goods, and Domestic Services

For example, AI has agreed to reduce its concession area to 31,379.8 hectares.


President Director of Adaro Energy, Garibaldi Thohir, commented: “The signing of the MoU is evidence the Adaro Energy Group continues to fulfill the mandate and obligations of Indonesian law as part of the normal course of conducting our business.

“The MoU is consistent with our main goal of creating maximum sustainable value from Indonesian coal. The key terms are in line with our desire to be an asset to our country. We will continue to deliver positive energy to all of our stakeholders for many years to come and in doing so help build the nation.”

Adapted from press release by Katie Woodward

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