Pomalaa Ferronickel Plant Expansion Project (“P3FP”)

q. Pomalaa Ferronickel Plant Expansion Project (“P3FP”)

The Company has entered into several agreements related to P3FP project to increase the efficiency of the ferronickel plant with the following details:

On January 17, 2012, the Company and Wika entered into an agreement for the latter to procure and install a belt conveyor with a contract value of US$13,500,000. The agreement is valid until April 17, 2013. The extension of the contract was not accepted and the Commercial Operation Da te (“COD”) remained effective on April 17, 2013. Because of that, fines due to late completion of work started to occur based on the contract (six weeks after COD). As at June 30, 2015, the construction of related asset has been substantially completed, however the belt conveyor has not been yet handed over from contractors since there are several unfinished components.

On March 26, 2012, the Company and PT Adhi Karya (Persero) Tbk entered into an agreement for the latter to procure and install a jetty and facilities with a contract value of US$32,874,083. The agreement is valid until June 26, 2013. The Company and PT Adhi Karya (Persero) Tbk have agreed on a contract extension which is valid until August 15, 2013. As at December 31, 2013, PT Adhi Karya (Persero) Tbk has not completed the project and the Company did not approve the second amendment to the contract so the target date was still August 15, 2013. Because of that, the Company has the right to impose fines due to late completion of work and started occur based on contract (six weeks after target date). As at June 30, 2015, the construction of related asset has been substantially completed, however the jetty and its facility has not been yet handed over from contractors since there are several unfinished components.

On March 28, 2012, the Company and Wika entered into an agreement for the latter to procure and install Refining-3 with a contract value of US$35,475,000. The agreement was valid until January 28, 2014. The extension of the contract was not accepted and COD remained effective on January 28, 2014. Because of that, fines due to late completion of the work started to occur based on the contract (six weeks after COD). The construction phase was completed on October 31, 2014.

On December 10, 2012, the Company and Sumitomo Corporation entered into an agreement related to the construction of the Pomalaa coal-fired power plant with total contract values of US$57,275,290, JPY3,439,137,022 and Rp412,748,103.

On May 17, 2013, the Company and Sumitomo Corporation entered into a Notice to Proceed to start construction of the Coal Fired Power Plant which is expected to be completed on or before the date falling 25 months and 28 months after the date of the Notice to Proceed for Unit 1 and Unit 2, respectively. On April 15, 2013, the Company and Sumitomo Corporation signed a first amendement of the agreement to amend the provisions on the standby letter of credit stated under the contract signed on December 10, 2012. Construction in progress as of June 30, 2015 was 83.46%.

33. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES (continued)

q. P3FP (continued)

On February 6, 2013, the Company entered into a Construction of Ore Preparation Line-4 for P3FP Project Agreement with the Unincorporated Consortium of Kawasaki Heavy Industries, Ltd. and Wika with an aggregate contract value of US$66,899,880 and JPY2,914,808,200. Construction of Ore Preparation Line-4 is expected to be completed on July 31, 2015. On June 28, 2013, the Company and the Unincorporated Consortium of Kawasaki Heavy Industries, Ltd. and Wika signed an amendment to the contract, in order to change the project name from “Modernisation-Optimisation of Pomalaa Ferronickel Smelters Project” to “Proyek Perluasan Pabrik Feronikel Pomalaa”. Construction in

progress as of June 30, 2015 was 95.26%.

The Company started a new construction of the Oxygen Plant-5 project in 2013. The Company entered into contracts with Daesung Industrial Gases Co, Ltd. on December 11, 2013 with a contract value of US$11,000,000 (equal to Rp132,055,000). Construction in progress as at June 30, 2015 was 98.50%.