to the financial statements stated in this Prospectus. All financial information of the Company which is domiciled in
Indonesia is prepared in Rupiah currency and in accordance with
the generally
accepted accounting
principles in
Indonesia.
1. A Brief History of the Company
The Company, based in Center Jakarta, is a Limited Liability Company, established under and based on existing
regulations in the Republic of Indonesia, with the name of PT Bumi Kencana Eka Sakti by the Deed of Establishment No. 81
dated March 13, 1997, made before Imam Santoso, SH, Notary in Jakarta. The Deed of Establishment was approved by the
Minister of Justice based on a Decision No. C2-7922.HT.01.01- TH.98 dated June 30, 1998 and was submitted for registration
in the Company Register in accordance with UUWDP No. TDP 090515142049 in the Company Registration Office of Center
Jakarta Municipality under No. 2178BH 09.05XI2000 dated November 7, 2001 as well and was published in Official Gazette
of the Republic of Indonesia No. 30 dated April 12, 2002, Supplement No. 3667.
The Company altered its name which initially named PT Bumi Kencana Sakti Eka into PT Golden Energy Mines Tbk., based
on the decision of the shareholders of the Company as set forth in the Deed of Meeting Decision Statement of PT Bumi
Kencana Eka Sakti No. 43, dated November 16, 2010, made before Linda Herawati, SH, Notary in Central Jakarta.
Articles of Association have been amended several times and last modified in accordance with the Deed of Meeting
Decision Statement of PT Bumi Kencana Eka Sakti No. 43, dated November 16, 2010, made before Linda Herawati, SH, Notary in
Central Jakarta, the aforementioned Deed of Meeting Decision Statement of PT Bumi Kencana Eka Sakti No. 43 dated November
16, 2010 has obtained approval from the Ministry of Justice pursuant to Decision No. AHU-54931.AH.01.02.Year 2010 dated
November 23, 2010, has been registered in the Company Register No. AHU-0084940.AH.01.09. Year 2010 dated November 23, 2010
and has been received and noted in the database of Legal Entities Administration System of Ministry of Justice and
Human Rights of the Republic of Indonesia No. AHU-AH.01.10- 30717 dated November 30, 2010 and has been registered in the
Company Register No. AHU-0086853.AH.01.09.Year 2010 dated November 30, 2010, of which contents among others are the
approval of the Companys status alteration from a Closely Held Company to a Publicly listed Company, alteration of all
provisions of the Company’s Articles of Association within the framework of adjustment with the regulation of Bapepam-LK No.
IX.J.1, and alteration of the Company’s name as mentioned above.
In accordance with the provisions of its Articles of Association, the purpose and objectives of the Company at this
time is to perform business in Mining Products Trading and Mining Services.
o The Companys Business Activities
The Company is the holding company of 12 subsidiaries with 10 subsidiaries engaged in thermal coal mining with
caloric value ranges between 5,200-6,100 kcal kg adb, with mining projects are entirely located in the territory of
Indonesia which
spread in
South Sumatra,
Jambi, South
Kalimantan and Central Kalimantan. The entire mining project area of each subsidiary is 47,500 hectares.
Since it was established, the Company is only engaged in mining business through its subsidiaries and Coal Trade.
Based on the independent technical reports of PT SMG Consultants on February 2011 and March 2011 and of PT Danmar
Explorindo on February 2011, in accordance with the JORC standard methodology, the Company and its subsidiaries own
coal resources for more than 1.93 billion tons of thermal coal, with coal reserves of approximately 849 million tons.
The Company plans to continue exploration and drilling program in 2011 to increase the amount of coal reserves.
The following is a summary of the independent technical reports of PT SMG Consultants and PT Danmar Explorindo:
No. Area
Resources in M illion Tons Reserve in m illion Tons
M easured Indicated
Probable TOTAL
Proven Probable
TOTAL
1 BIB – Kusan
330.1 215.3
318.8 864.3
239.0 97.0
336.0 2
BIB – Girim ulya 260.1
284.2 173.6
717.9 176.0
234.0 410.0
3 BIB – Bat ulaki
10.9 7.8
7.5 26.2
4 BIB – Sebam ban
19.1 6.4
2.1 27.6
5a KIM Barat
66.3 26.9
8.7 102.0
37.6 11.0
48.6 5b
KIM Tim ur 80.8
43.2 35.4
159.4 23.8
7.2 31.0
6 TKS
26.6 2.3
1.3 30.3
21.4 1.8
23.1
TOTAL 793.9
586.3 547.5
1,927.7 497.8
351.0 848.8
Note: Based on the Independent Technical Reports of PT SMG
Consultants Based on the Independent Technical Reports of PT Danmar
Explorindo 70 of the total reserves, in accordance with the
percentage of ownership of the Company in TKS 2.1 The amount of production has increased from year to year.
In 2008, the Company through its subsidiaries produced as much as 1.3 million tons of coal. The total production increased to
1.5 million tons in 2009, 1.8 million tons in 2010 and 1.8 million tons in period of 6 six months ended on June 30,
2011. 2.2 The following is a summary of production data history
within last 3 three years:
Block Production in Tons
Period of 6 six months
Year 2011 2010
2009 2008
BIB 1,167,117
1,118,046 1,182,669
1,252,305 KIM
615,367 638,206
353,834 -
TKS 53,383
8,569 -
- TOTAL
1,835,867 1,764,821
1,536,503 1,252,305
Note: KIM was acquired by the Company on May 2009.
Through the mining supervision cooperation, the Company obtained additional coal production as much as 265 thousand
tons of coal in 2010 and 543 thousand tons of coal during the period of 6 six months ended on June 30, 2011 from mining
area of TBA, a third party. Company has a long-term Sales and
Purchase Agreement of coal and Mining Supervision Cooperation Agreement between the Company and ASC, to conduct off-take of
coal and mining supervision in the area of TBA. ASC is a third party that has Sales and Purchase Agreement of coal with TBA.
By doing mining supervision, the total production performance of the Company is as much as 2.0 million tons in 2010 and 2.4
million tons in the period of 6 six months ended on June 30, 2011. In the Companys financial statements, the coal produced
from the mining area of TBA is recognized as coal sales and purchase transactions.
Open cut mining methods, relatively low stripping ratio and the proximity of the mine location with the port
facilities, has made operating costs in the Company’s mining concession become competitive. BIB, a Subsidiary of the
Company has a low stripping ratio i.e. 1:4 to 1:5. The following is the data of mining location permit:
2. Public Offering
