Surface Mining Underground Mining

• The area of the mining area; and • The utilization of land and building in the area where the contractor constructs facilities for its mining operations. - Levies, taxes, charges and duties imposed by Regional Governments in Indonesia, which have been approved by the Central Government. - General administrative fees and charges for facilities or services rendered and particular rights granted by the Government to the extent that such fees and charges have been approved by the Central Government - Duties on the transfer of ownership for motor vehicles and ships or sea transportation. - Capital goods and materials, imported by private Contractor Company within the context of the Agreement, are exempted from import Duty, Import Levies and Duty of Ownership Transfer according to the prevailing legislative rules. - Allocating appropriate amount of fund in certain Bank, which have been approved by the Government as Mining Reclamation Bond, since it’s commencing up to decommissioning.

1.1.2. Mining Method

In principle, mining is classified into two main categories namely surface mining and underground mining. Implementations of these methods rely on the occurrences of mineral deposit, which are characteristics, kind of mineral, deposit type, position, spreading, and host-rock over-burden.

1.1.2.1. Surface Mining

Surface mining is excavation of mineral deposit at or near the surface, where the whole work is open to the atmosphere. The name is also designated by a modifying word or phrases depending on the mineral deposit types such as the following. a. Open-pitopen-cutopen-castopen-mine is open surface for removing metallic-mineralsore deposit; for example Pomalaa nickel mine at South- 5 East Sulawesi Province, Bintan alluminium mine at Kepulauan Riau Province, Eastberg cupper mine at Papua Province. b. Quarry is excavation for economic-mineralsindustrial-minerals; for example Tulungagung marble mine at East Java Province, Padalarang limestone mine at West Java Province, Karimun granite mine at Kepulauan Riau Province. c. Strip mine is excavation for flat or slightly oblique of coal bedseamlayer; for example Ombilin coal mine at West Sumatera, Tanjungenim coal mine at South Sumatera, Sangata coal mine at East Kalimantan, d. Alluvialplacer mine is excavation for alluvium deposit of sand, gravel, or talus from which some valuable mineral is extracted; for example Logas gold mine at Riau Propince, Cilacap iron mine at Central Java Province, Martapura diamond mine at South Kalimantan Province. e. Hydraulic mine, a placer mine worked by means of a stream of water directed against a bank of sand, gravel, or talus; soft rock similarly worked; for example almost all of ore tin mine on the islands of Bangka- Belitung Province. Figure 1.1 Land management principle of back filling of a coal surface mining method Adopted from Skelly and Loy, 1975 6

1.1.2.2. Underground Mining

Underground mining is also known as a “deep” mine; it’s usually located several hundred meters beneath the earth’s surface by means of the certain opening hole to connect to the surface. The opening hole could be employed either for main entrance, main haulage, or supporting facility way, those provide work for material and labor transportation, ventilation, drainage. a. Shafts, a vertical or incline opening hole. b. Tunnel, a horizontal or gentle inclining hole through in both sides of foothill. c. Drift a horizontal or slight inclining hole at or parallel to adjacent strike of the mineralcoal deposit. Strike is the longest part of the deposit. d. Adit, a horizontal or gentle inclining hole through the foothill in one side, it’s a dead end tunnel. The broken mineral or coal as product material is removed mechanically and transferred by shuttle car or conveyor to the surface. Figure 1.2 The underground mining method profile of an ore mining Adopted from Microsoft ® Encarta ® Reference Library 2005 7

1.1.2.3. Mining Supporting Facility