PKP2B AND IUP AREAS
year 2036. PKP2B may be extended before expiration date through
agreement between
the PKP2B
holders and
the Government. Meanwhile, the Ministry of Energy and Mineral
Resources can terminate the PKP2B if the PKP2B holders fail to fulfill the requirements as stipulated in the PKP2B.
Mining operations are currently located in Batulaki and Sebamban Blocks. Coal mining operations in the future will be
made in Kusan and Girimulya Blocks. The table below shows the estimation summary of proven and
probable coal reserves within PKP2B concession area of BIB and production data of 2009, 2010 and the six-month period of
2011.
Block M ineable Reserve in million Tons
Product ion in Tons Proven
Pr obable Tot al
2009 2010
Six-mont h period of
2011 Bat ulaki
NA NA
NA 915,660
801,141 521,309
Sebam ban NA
NA NA
267,010 316,905
654,323 Kusan
239.0 97.0
336.0 -
- 485
Girimulya 176.0
234.0 410.0
- -
- Jumlah
415.0 331.0
746.0 1,182,669
1,118,046 1,167,117
Sour ce: The am ounts of m ineable r es er ves ar e fr om Independent Tec hnic al Repor t of SMGC on Mar ch 2 011.
The amount of proven and probable coal reserves are calculated using JORC standard methodology.
The table below shows a summary of estimated amount of measured, indicated and inferred coal resources according to
JORC standard methodology in Kusan, Girimulya, Batulaki and Sebamban blocks as of June 30, 2011.
in Million Tons
Block Est imat ed Coal Resources
M easur ed Indicat ed
Inferred Tot al
Bat ulaki 10.9
7.8 7.5
26.2 Sebam ban
19.1 6.4
2.1 27.6
Kusan 330.1
215.3 318.8
864.3 Girimulya
260.1 284.2
173.6 717.9
Jumlah 620.2
513.7 502.0
1,636.0
Sour ce: The am ounts of m ineable r es er ves ar e f r om Independent Technic al Repor t of SMGC on Febr uar y and Mar c h 2 0 11.
Concession area of KIM
Total concession area of KIM and its subsidiaries covers area of 2,610 hectares. This concession is located in Sumatra,
approximately 260 km to the southeast of city of Padang in Jambi province, Jujuhan district and Muara Bungo Regency.
Mining operation area of KIM consists of a number of different concessions. However, due to the adjoining location of
concessions, in mining practice these different concessions are treated as one mining area.
The Batang Asam river that crosses the mining concession of KIM divides concession area of KIM into two major blocks,
namely: iii
KIM East Block; includes KIM1, KIM2, KCP, and BBU. iv KIM West Block; includes TBBU, BNP and BHBA.
Currently, the mining operations have been carried out in both blocks.
The table below shows the summary of estimated proven and probable coal reserves within the IUP concession area of KIM
and production data of 2009, 2010 and the six-month period of 2011.
Block M ineable Reserve in million Tons
Product ion in Tons Proven
Pr obable Tot al
2009 2010
Six-mont h period of
2011 East KIM
37.6 11.0
48.6 353,834
568,581 208,902
West KIM 23.8
7.2 31.0
- 69,625
406,465 Jumlah
61.4 18.2
79.6 353,834
638,206 615,367
Des cr iption: - Sour c e of inf or m ation about the am ounts of m ineable r eser ves ar e the Independent Technic al Repor t of SMGC on
Febr uar y 2 011. - Not including the pr oduc tion of c oal fr om the m ining ar ea of TBA whic h ar e 2 6 4, 8 74 tons in 20 10 and 542 , 5 61 tons
dur ing the per iod of s ix 6 months ended J une 3 0 , 2 0 11.
The amount of proven and probable coal reserves are calculated using JORC standard methodology.
The table below shows a summary of estimated amount of measured, indicated and inferred coal resources according to
JORC standard methodology.
in Million Tons
Block Est imat ed Coal Resources
M easur ed Indicat ed
Inferred Tot al
KIM East 66.3
26.9 8.7
102.0 KIM West
80.8 43.3
35.4 7.5
Jumlah 147.1
70.2 44.2
261.5
Sour ce: The am ounts of m ineable r es er ves ar e fr om Independent Tec hnic al Repor t of SMGC on Febr uar y 2 0 11.
Concession Area of TKS
The concession area of TKS owned by the Company covers an area of 9,707 hectares. This concession is located in Muara Teweh
Regency, in the south of the equator in Central Kalimantan. TKS is located approximately 270 km from the city of
Samarinda, East Kalimantan and 500 km from the city of Banjarmasin, South Kalimantan.
The aforementioned concession area of TKS does not include IUP concession area of TKS pursuant to the Decision of Regent of
East Barito No. 570 Year 2009 regarding the Approval of Alteration of Exploration Mining Permit into Production
Operation Mining Permit of TKS dated December 31, 2009 in an area of 1,748 hectares. This concession is located in East
Barito Regency, Central Kalimantan. All the coal excavation activities in this concession area, including but not limited
to coal transport to the stockpile, repair andor maintenance of roads, mine drainage, up to the reclamation is carried out
by PT Samudera Bahtera Kencana Sakti hereinafter referred to
as “SBKS” pursuant to the Cooperation Agreement between TKS and SBKS dated September 1, 2008. The scope of these works
will finish when the coal reserves in this concession area is exhausted and all of the mining costs, including but not
limited on taxes, employees social security, insurance for all workers who work in the concession area will be the burden
of SBKS. The coal produced in this concession area will be purchased by SBKS as provided in Article 4 paragraph 1 of the
Cooperation Agreement. The Company has started the production trial phase in 2010.
The production activities will be started in the second quarter of 2011.
The table below shows the summary of estimated proven and probable coal reserves and production data of 2009, 2010 and
the six-month period of 2011 in IUP concession area of TKS in Muara Teweh.
Block M ineable Reserve in million Tons
Product ion in Tons Proven
Pr obable Tot al
2009 2010
Six-mont h period of
2011 TKS
30.6 2.6
33.2 -
8,569 53,383
Sour ce: The am ounts of m ineable r es er ves ar e f r om Independent Technic al Repor t of Danm ar Explor indo on Febr uar y 2 0 11.
The amount of proven and probable coal reserves are calculated using JORC standard methodology.
The table below shows a summary of estimated amount of measured, indicated and inferred coal resources according to
JORC standard methodology.
in Million Tons
Block Est imat ed Coal Resources
M easur ed Indicat ed
Inferred Tot al
TKS 38.0
3.3 1.9
43.2
Sour ce: The am ounts of m ineable r es er ves ar e f r om Independent Technic al Repor t of Danm ar Explor indo on Febr uar y 2 0 11.
The total production of coal in the three mining areas shows an
increase from
year to
year. This
is because
the availability of supporting facilities and infrastructures and
the opening of new pits. In line with the increase in production quantities, the amount of coal sales of the Company
and its subsidiaries in an outline also increased from 1.25 million tons in 2008 to 1.57 million tons in 2009, 1.45
million tons in 2010, and 1. 96 million tons in the six-month period
ended June
30, 2011.
With the
addition of
infrastructure facilities and opening new pits, it is expected that the amount of coal production of the Company and its
subsidiaries will increase significantly in the years to come.
Concession Area of MAL
The concession area of MAL covers an area of 4,836 hectares. MAL is located in South Sumatra, approximately 266 km the
south-east of the city of Padang, the capital of West Sumatera Province.
Coal mining activities have not been started in this area.
Concession area of NIP
The concession area of NIP covers an area of 4,500 hectares. NIP is located in South Sumatra, approximately 266 km the
south-east of the city of Padang, the capital of West Sumatera Province. This area is located adjacent to the concession area
of MAL. Coal mining activities have not been started in this area.