Schedule 569 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 c. Coal handling services contracts continued
PIK On 1 August 2007, PIK entered into a stevedoring agreement with PT Indah Buana Samudera which is
valid until 31 December 2008.
d. Reclamation guarantees
GBP As at 31 March 2008, GBP has provided reclamation guarantees to the government in the form of bank
guarantees amounting to Rp 11,990 or equivalent to US1,302,500 refer to Note 28m for 2007 and 2008. These guarantees are in accordance with the Decree from the Directorate General of Minerals, Coal and Geothermal
regarding reclamation guarantee for the period 2007—2011 amounting to Rp 29,896.
These bank guarantees may be claimed by the Government if GBP does not carry out its reclamation plans as agreed with the Government for those periods.
FSP Based on a Decree from the Directorate General of Minerals, Coal and Geothermal, dated 26 April
2006, the reclamation guarantee for the period 2005 to 2009 is Rp 3,596. On 6 February 2008, FSP has provided a reclamation guarantee for 2005 and 2006 to the Regency of Kutai Kartanegara in the form of a bank guarantee
at PT Bank Danamon Indonesia Tbk amounting to Rp 2,864 or equivalent to US311,148 refer to Note 28m. This guarantee is valid for one year up to 31 December 2008.
This bank guarantee may be claimed by the Regency of Kutai Kartanegara if FSP does not carry out its reclamation plans as agreed for those periods.
e. Rental commitments
DPP On 12 November 2004, DPP entered into a floating terminal pontoon rental agreement with ASL Energy
Pte. Ltd., a related party, for a period of ten years, with a rental fee amounting to US5,000,000 per annum. The agreement is valid for a period of ten years.
Group On 7 January 2008, the Company, DPP, FKP, TSA, WBM, BE, IP, GBP, MP, PIK and KOTR entered
into an office rental and reimbursement for office maintenance expense agreement with PT Nirmala Matranusa for a period of 10 years, for a total office rental amount of US193,006 per year including VAT and office
maintenance of US78,957 per year. The agreement is valid from 1 January 2008 up to 31 December 2017 and can be extended for the next two years.
IP On 18 January 2007, IP entered into provision of equipment rental and camp facility utilisation
agreement with PT Kaltim Supacoal, a related party, for the construction of plant at PT Kaltim Supacoal’s site. The fee for this agreement is ranging from US12 to US169, and both parties have agreed with this however, as
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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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