Schedule 570 PT BAYAN RESOURCES AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005
Expressed in million Indonesian Rupiah, unless otherwise stated
28. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued e. Rental commitments continued
at the date of the consolidated financial statements, the agreement is still under process. The agreement is valid until the completion of the construction of plant.
f. Agency fees
The Company, GBP and WBM The Company, GBP and WBM have various agency agreements with third party agents to market their
coal for certain customers. The agents will receive commissions based on a percentage of sales to those customers.
g. Litigation
On 20 May 2005, Abdul Sokeng, on behalf of a class of 76 members of the community of Muara Tae village and Mancong village, Jempang Subdistrict, Kutai Regency the “Plaintiff”, brought a civil suit in the
District Court of Tenggarong “DC” against GBP for Rp 1,663,000 in damages, alleging GBP’s failure to compensate the Plaintiff for the exploitation and destruction of the Plaintiff’s land. On 1 March 2006, the DC
ruled that GBP was not negligent and did not violate any law, and therefore, the Plaintiff had no legal claim. On 14 March 2006, the Plaintiff appealed the DC’s decision to the High Court of East Kalimantan, which upheld the
DC’s decision in a ruling issued on 3 May 2007. Subsequently, the Plaintiff submitted a cessation pursuant to Deed of Cessation Request dated 15 August 2007, and GBP submitted a Contra Memorandum of Cessation on
29 October 2007. Currently, the suit is being examined by the Supreme Court.
In 2007, GBP was investigated by the Regional Police of East Kalimantan, the Financial and Development Supervisory Board and a team from the Ministry of Energy and Mineral Resources, Mining and
Energy Department of East Kalimantan and Kutai Barat Regency in relation to the coal sales price in the long- term sales agreement with one of GBP’s third party customers. GBP believes that based on the information from
the investigating parties as described above, as a result of the investigation process, there will be no further investigation of GBP.
h. Agreement for construction of reclaiming conveyors 9 and 13
DPP On 11 August 2007, DPP entered into an agreement with PT Nirmala Matranusa for construction of
reclaiming conveyors 9 and 13 at BCT. The value of the contract is US0.7 million or equivalent to Rp 6,250. On 8 October 2007, DPP entered into an agreement with PT AE Automotion for installation and
commissioning of the steel structural and mechanical components for reclaiming conveyors 9 and 13 at BCT. The value of the contract is US0.3 million or equivalent to Rp 2,756.
On 30 October 2007, DPP entered into an agreement with PT Cipta Total Solusindo for installation and commissioning of the electrical works and control system for reclaiming conveyors 9 and 13 at BCT. The value
of the contract is US0.1 million or equivalent to Rp 957.
i. Forestry fee
WBM and GBP Based on Government Regulation “GR” No. 2 dated 4 February 2008, all companies which have
activities in production and protected forest areas which are not related to forestry activities will have an obligation to pay a forestry fee ranging from Rp 1.2 to Rp 3 per hectare annually. This fee is effective from 2008.
The implementation of GR No. 2 is still awaiting issuance of a regulation from the Minister of Forestry and Minister of Finance to regulate the terms of payment and the calculation mechanism, accordingly, the Group has
not yet determined the applicability of this regulation to the Group or the potential cost.
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Schedule 571 PT BAYAN RESOURCES AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005
Expressed in million Indonesian Rupiah, unless otherwise stated
28. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued j. Coal shipping and hauling contracts
The Company On 2 October 2006, the Company entered into a coal shipping contract with PT Pelayaran Segara Niaga
Utama “PSNU” for the period 1 January 2007 until 31 December 2007. On 5 November 2007, this contract was extended until 31 December 2008, and on 19 March 2008, this contract was terminated.
On 18 December 2007, the Company entered into a coal shipping contract with PSNU for the period January 2008 until December 2008. On 11 March 2008, the Company amended this agreement to change the
terms related to coal quantity shipped and contract period until 31 December 2012. The total quantity to be shipped for five years is 29.5 million MT with a tolerable variance of 20.
GBP On 5 December 2006, GBP entered into an agreement with PSNU, which was extended on 5 February
2008 for a period of one year from 1 January 2008 to 31 December 2008, for coal deliveries by sea from the Company’s concession area to the BCT. On 19 March 2008, GBP amended this agreement to change the terms
related to coal quantity shipped, contract period and tariff. This agreement is valid for 5 years. Total quantity to be shipped for five years is 5.8 million MT with a tolerable variance of 20.
PIK On 3 December 2007, PIK entered into a coal transportation and transshipment agreement with PSNU
for a total coal transport volume of 1.8 million MT with a tolerable variance of 20. This agreement commenced on 3 December 2007 and is valid for a period of one year or until the
agreed coal transport volume is achieved, whichever is later. On 19 March 2008, PIK terminated this agreement effective 11 March 2008. On the same date, PIK entered into a new coal shipping agreement with PSNU for the
period 11 March 2008 until 31 December 2012 under which the tariff to be used is based on Free In StowedOut and Trimmed “FIOST”. The total quantity to be shipped for five years is 13 million MT with a tolerable
variance of 20.
TSA On 8 November 2007, TSA entered into a coal shipping agreement with PSNU related to coal loading
and transportation from the loading port to the coal terminal. This agreement is valid until 31 December 2012 under which the tariff to be used is based on FIOST. On 19 March 2008, TSA amended this agreement to change
the terms relating to coal quantity shipped. The total quantity to be shipped for five years is 11.6 million MT with a tolerable variance of 20.
WBM On 3 August 2007, WBM entered into an agreement with PT Lian Beng Energy, a related party, to
provide coal hauling services for 5.75 million MT of coal. The agreement is valid until 1 October 2009 or until the targeted production is reached, whichever is earlier. This agreement was amended on 12 November 2007 to
increase the coal tonnage by 9 million MT.
On 19 March 2008, WBM entered into a coal shipping agreement with PSNU for the period 1 January 2008 until 31 December 2012. The total quantity to be shipped for five years is 32 million MT with a tolerable
variance of 20 and the tariff used is based on FIOST.
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