PT.

DUA PUTERI KUTOR

General Review M-09

December 2010
Prepared by,

Technical Team of
PT. Samuel International
 STATUS & LEGAL ASPECTS
Technical Team of
PT. Samuel International

No Description Remarks
1 Company Name PT. Dua Puteri Kutor (DPK)
2 Notarial Deed Available
3 Mine Location Tepian Langsat, Kecamatan Bengalon, Kabupaten East Kutai, East Kalimantan
Nearest Town : Samarinda and Bontang +/-223 km
to the north west of Bontang City, accessable by car for 4.0 Hours

4 Mining Permits PT KSP

A. IUP Exploration KP No: 188.4.45/594/HK/2009, concession area : 12,830 Ha
issued ……………….......................... Expired date : ……………………………………………
B. IUP Exploitation
C. IUP Hauling & Selling

5 Infrastructures
A. Barge Jetty/Port and Stockpile Area:
- Location :
- Name of River :
- Hauling Distance :
- Barge Capacity :
- Stockpile Capacity :
B. Barge Loading Plan :
Tepain Langsat, Kecamatan Bengalon, East Kutai, East Kalimantan.
Rapak River or Sepasu River
+/- 40 - 80 km maximum from mine to Sea Port (existing road established)
Maximum 320 feet barge (10,000 MT)
80,000 MT
Processing Plant, Stockpile Area, Loading Conveyor (under plan).

6 Mine Technical Information

A. Geological
B. Mining Methods
C. Outcrops and Boreholes
D. Estimated coal deposit
E. Coal Quality
F. Mining Company/Area Nearby
G. Hauling distance
H. Loading Point (MV Anchorage)
Pulau Balang (Tmpb), Lembak (Toml), Mangkupa (Teom), Balikpapan (Tmbp) and Maluwi (Tmma)
The concession is in Miocen Age.
Sub Bituminous Coal type (crucible swelling number : 2 - 7).
Number of seam : 5 seams (multi seams), Coal Thickness : 1.10 - 6.00 m (outcrops)
Coal Dip: 10 deg – 30deg (average 15 deg).
Open Pit/Cast Mining using conventional loading hauling
Number of outcrop : 36 outcrops. Number of Boreholes : 28 holes
Measured (Mineable): 3,752,873 MT. Indicated : 6,978,128 MT. Inferred : 7,779,724 MT.
Total Resources : 18,510,726 MT. Exploration Activitiy is still on going in order to increase Resources
Total Moisture (adb) : 30% max, Inherent Moisture (adb) : 14% approx,. Ash (adb) : 5% max.
Volatile Matter (adb) : 41% - 45%. Fixed Carbon (adb) : 41% - 48%.
Total Sulfur (adb) : 0.65%. Gross Calorific Value (Kcal/kg – adb) : 5300 – 6200. HGI : 51.
PT Kaltim Prima Coal, PT Taraco Mining and PT Perkasa Inakakerta
Side by side with Protection Forest Muara Maau (Nothern Side)
Overlapping with Sanctuary Muara Maau (Proposed forestry 1994 approx. 5,529 Ha), PT Taraco Mining
Option 1: 40 km from mine to jetty (existing road established). Option 2: 77 kmfrom mine to River Port.
Approx. 40 miles from Jetty Port to KPC Transhipment Point or (July - December to Muara Berau
East Kalimantan, +/- 92 miles from Jetty Port.

2
 RECONCILIATION OF MEMR Technical Team of
PT. Samuel International

Based on Announcement Reconciliation IUP from MEMR, PT. Dua Puteri Kutor
still not being registered as a CLEAN & CLEAR concession who need to make a
written response and objection being addressed to the Mining License
Authorized Issuer (Bupati Kutai Timur Regency).
3
 ACCESSIBILITY MAP
Technical Team of
PT. Samuel International

PT. Dua Puteri Kutor (DPK) is an IUP Exploration with Area approx. 12,830 Ha, administratively located at Bengalon – East Kutai
district, East Kalimantan Province. Location can be reached from the city of Samarinda – Bontang – Sengata – Site via overland
journey is 223 km within approx. 7 hours travel time. General accessibility: Jakarta – Balikpapan (2 hours air travel) then land
travel go to north west 9 hours via Samarinda – Bontang – Sengata.
4
 GEOLOGY FORMATION
Technical Team of
PT. Samuel International

Mahakam River
(Upstream)

LEGEND :

PT. Dua Puteri Kutor (DPK) contained in Sangatta Quadrangle sheet where the existence of coal at research sites including in 5 major formations area Pulau Balang
(Tmpb), Balikpapan (Tmbp), and Mangkupa (Teom), Lembak (Toml) and Maluwi (Tmma) This formation consists of Sandm clay, silt, tuff and coal, within alternation
of quartz sandstone, clay, silt, occur cross bedding and parallel laminations. Locally containing an intercalation of coal with bedding thickness about 20-40 cm.
Claystone, grey, brittle, contains of muscovite, bituminous, iron oxide. indicated a Middle Miocene-Late Miocene with thickness about 2000 m. Potential coal at Coal
bearing formations in Balikpapan and PulauBalang formation which is based on coal characteristics, stratigraphy, thickness and trajectory data are interpreted to be 5
seams traverse. general investigation of the coal layer in areas trending N2300E – N3530E, with a slope of 100-300, coal thickness ranges from 1.1 - 6.0 m. 5
 OVERLAPPING AREA Technical Team of
PT. Samuel International
(Based on Forestry INTAG 1994)

Status of PT Dua Puteri Kutor (DPK) which approx 12,830 Ha as follow:

1. With KP/PKP2B, is Overlapping with PT Taraco Mining (100% area, indicated relinguisment
area), need to be rechecked by MEMR Dinas.
2. With Plantation, need to be rechecked by Dinas Perkebunan East Kutai 6
 FORESTRY STATUS
Technical Team of
PT. Samuel International

Forestry Status of PT. Puteri Dua Kutor area approx. 12,830 Ha as follow:
1. With Production Forest, 100% area inside of Production forest that need Pinjam Pakai Permit
2. With IUPHHK-HT, 20% area overlap with HTI PT. Barito Pacific, need to be clearance with the company
3. No APL Status since all area inside of Production Forest
7
 COAL LOGISTIC
Technical Team of
PT. Samuel International

PT. Dua Puteri Kutor (DPK) Area approx 12,830 Ha, administratively located at Bengalon, East Kutai district, East Kalimantan
Province. In order to take out the coal from mine to M. Vessel with scenario as follow:
- Option 1: Hauling to Sepasu Port approx. 40km using Public Road then barging to Vessel along 70 km to KPC Transshipment.
- Option 2: Hauling to Muara Rapak Port approx. 77km using Public Road then barging to Vessel along 167km to Muara Berau.
Generally both of the options, this concession is potential and need further investigation esp. Resources & Quality.
8
 HYPOTHETICAL RESOURCES
Technical Team of
PT. Samuel International

PUTERI DUA KUTOR RESOURCES POTENTIAL RESERVES

SEAM_NAME SEAM_THICK NO_OUTCROP MEASURED INDICATED INFERRED PROVEN PROBABLE
SEAM A 0.60 1 73,601 170,664 265,668 55,200.60 103,732.20
SEAM B 0.44 3 132,738 271,216 280,564 99,553.55 168,792.72
SEAM C 1.07 5 491,682 859,903 1,050,183 368,761.58 552,872.13
SEAM D 3.45 13 2,721,010 4,844,438 5,145,909 2,040,757.78 3,102,471.74
SEAM E 0.59 4 301,394 745,794 899,808 226,045.17 448,245.59
SEAM F 0.30 1 32,448 86,112 137,592 24,336.00 51,168.00
TOTAL 3,752,873 6,978,128 7,779,724 2,814,655 4,427,282

Reserves Resources
OB Volume 36,209,685 92,553,628
Coal Tonnage 7,241,937 18,510,726
SR 5.00 5.00

PROJECTED STRIPPING RATIO PDK

Coordinate Total Depth Thick OB Thick Coal Mass Coal SR

Outcrop ID
Longitude (E) Latitute (S) (m) (m) (m) (mc) bcm/t
Max 37.50 34.90 6.00 7.80 24.41
Min 5.10 1.70 1.10 1.43 0.23
Average 28.74 19.73 3.64 4.74 5.65
Weighted Average 459.90 21.48 3.59 4.66 5.00

9
 QUALITY & PRICE
Technical Team of
PT. Samuel International

PARAMETER STANDARD RESULT BASIS

A. Total Moisture, Weight % D 2013R 30.08 AR
B. Proximate Analysis, Weight %
Moisture in the Analysis Sample D 3302-02a 13.79 ADB
Ash Content D 3174-03 4.62 ADB
Volatile Matter D 3175-03 40.83 ADB
Fixed Carbon D 3172-02 40.76 ADB
C. Total Sulphur, Weight % D 4239-02a 0.63 ADB
D. Gross Calorific Value, Kcal/kg PDK Coal CV (sumprod) 4,668 Kcal/kg
GCV (ar) D 5895-03 4,668 AR Assume using ICI-3 5,000 Kcal/kg
GCV (adb) D 5865-03 5,756 ADB PDK Coal Price 58.41 US$/ton FOB M/V
GCV (db) D 5865-03 5,415 DB
GCV (daf) D 5865-03 7,054 DAF
E. Hardgrove Grindability Index D 409-02 51

RESERVES TM IM ASH VM FC TS GCV (ar) GCV (adb)

SAMPLE Sample Code HGI Remarks
Mass Received %arb %adb %adb %adb %adb %adb kcal/kg kcal/kg
Exploration Report 2009 Composite 7,500 23.57 9.96 2.30 36.78 50.96 0.42 5,283 6224 51
PDK.01 - KT.5002/08 (Geoservices) RO 03682 6,318 29.29 12.81 4.48 40.96 41.75 2.65 4,764 5874
PDK.02 - KT.5003/08 RO 03684 8,421 32.53 17.66 7.10 37.06 38.18 0.34 4,388 5355
PDK.03 - KT.5004/08 RO 03686 13,364 30.15 14.97 5.50 41.20 38.33 0.53 4,406 5364
PDK.04 - KT.5005/08 RO 03688 6,261 28.33 14.50 5.00 44.77 35.73 0.31 5,000 5965
PDK.05 - KT.5006/08 RO 03690 9,839 36.88 13.32 2.81 45.00 38.87 0.36 4,370 6001
LKS 014 JTN 12 (Carsurin) RO 03692 1,390 21.41 6.34 8.68 43.62 41.36 0.98 5,129 6112
CII/P-1005/10 (Consult) MV. Ju Seong Jin 7,500 27.81 13.19 3.91 39.84 43.06 0.37 4,797 5769
JTN - KT. 9623/10 STX/TP 8,683 30.71 13.98 4.69 40.17 41.16 0.45 4,638 5758
Weight Average 7,697 30.08 13.79 4.62 40.83 40.76 0.63 4,668 5,756 51

Max 36.88 17.66 8.68 45.00 50.96 2.65 5,283 6,224

Min 21.41 6.34 2.30 36.78 35.73 0.31 4,370 5,355
Average 28.96 12.97 4.94 41.04 41.04 0.71 4,753 5,825
Weighted Average (Single Product) 30.08 13.79 4.62 40.83 40.76 0.63 4,666 5,756

- Typical coal Quality on CV(gar) 4,600 kcal/kg, medium rank coal at TM(ar) 30% with sulphur(adb) <1% , ash(adb)
<5% can be produced as single product.
- This typical coal quality is used as power plant ans smelting industry (sub-bituminous coal).
- This KP is potential and prospect due to have good market with price FOB M. Vessel approx. US$ 58.41/MT
10
 CAPITAL COST (CAPEX)
Technical Team of
PT. Samuel International

DETAIL COST (US $)

NO KEGIATAN PUTERI DUA KUTOR
JUMLAH
Via Sepasu Via Muara Rapak
New Road 10 19
Acq. Road width 50 50
Upgrade Road 30 58
Acq. Road width 20 20
Bridge 1 2
1 PRELIMINARY & GENERAL DEVELOPMENT
a - General - Preparation 50,000 50,000 50,000
b - Permitting & Documentation 50,000 50,000 50,000
c - Design and Engineering 350,000 350,000 350,000
d - Land Acquisition Mine Area (400 Ha) @ IDR 20,000,000 861,000 861,000 861,000
e - Land Acquisition Haul Road Location @ IDR 30,000,000 4,000 440,000 847,000
f - Land Acquisition Port Location (25 Ha) @ IDR 50,000,000 135,000 135,000 135,000
Sub Total No.1 1,886,000 2,293,000
2 CONSTRUCTION - MINING, AREA FACILITIES & INFRASTRUCTURE
a Civil Work at Mine & Facilities Area
Land Clearing, Cut-Fill at Mining Area 20,000 20,000
Land Clearing, Cut-Fill at Area Facilities 30,000 30,000
Land Clearing, Cut-Fill at Camp Facitilies & Access 50,000 50,000
b Mine Facilities - Structure, Building
Office & Area Facilities (Office, Workshop, etc) 150,000 150,000
Camp Facilities 100,000 100,000
Sub Total No.2 350,000 350,000
3 CONSTRUCTION - HAUL ROAD
a Bridge Construction 1,500,000 1,500,000 3,000,000
b New Coal Haul Road Development 250,000 2,500,000 4,812,500
c Upgrading Existing Haul Road 75,000 2,250,000 4,331,250
Sub Total No.3 6,250,000 12,143,750
4 CONSTRUCTION - PORT
a Earth Movement and Civil Work 250,000 250,000
b Weight Bridge 60 Ton Capacity 64,433 64,433
c Coal Crushing Plant (500 TPH) 875,849 875,849
d Barge Loading Conveyor (1000 TPH) 1,117,796 1,117,796
e Ground Pilling (BLC, ROM and Crusher) 165,680 165,680
f Dolphin and Tower Support Pilling 264,824 264,824
g Port Support Facilities 391,600 391,600
Sub Total No.4 3,130,182 3,130,182
5 Support and Services
Consultant Supervision and Quality Control 250,000 250,000 250,000
Health, Safety & Environmental 100,000 100,000 100,000
Sub Total No.5 350,000 350,000
6 Continguency & Escalation
Continguency 580,809 580,809 580,809
Sub Total No.6 580,809 580,809
GRAND TOTAL 12,546,991 18,847,741

11
 OPERATING COST (OPEX)
Technical Team of
PT. Samuel International

PDK COST
Mining @ Strip Ratio 5.0
CAPITAL COST COST NPV ANALYSIS
NO LOGISTIC OPTION DISTANCE
US$ Million (US$/T) NPV IRR
1 Via Sepasu Opt. 1: Hauling 40km; Barging 70 km 12.55 32.20 61.08 142.4%
2 Via Muara Rapak Opt. 2: Hauling 77km; Barging 167 km 18.85 40.52 25.73 43.4%

Puiteri Dua Kutor (Expected Rate) Rapak or Sepasu PORT

Key assumptions Via Sepasu Via Muara Rapak
Potential Contractor LOCAL LOCAL
Mining Cost Items
Stripping Ratio 5.00 5.00
Coal Hauling Distance 40 77
Coal Barging Distance 70 167

Exp. Rate
No Activities Unit
1 O/B removal $/bcm 2.10 10.50 10.50
2 Coal getting $/Ton 1.50 1.50 1.50
3 Coal hauling $/ton/km 0.10 5.00 9.63
4 Crushing $/Ton 1.50 1.50 1.50
5 Quality Control (Surveyor) $/Ton 0.10 0.10 0.10
6 Stockpiling & Port Handling $/Ton 1.50 1.50 1.50
7 Barging $/ton/km 0.04 2.45 5.85
8 Reclamation and Com Dev $/Ton 0.50 0.50 0.50
9 Overhead $/Ton 1.00 1.00 1.00
10 Transhipment & document $/Ton 2.50 3.00 3.50
11 Investment recovery $/Ton 2.50 2.50 2.50

12 Royalti (FOB Barge) $/Ton 5% 2.65 2.45

Total mining cost/ton 32.20 40.52

FOB Barge Logistic Cost 7.45 15.47
Percentage Logistic 23% 38%

Coal Price $ 58.4 US$

Exchange 9000 IDR

12
 PRODUCTION COST OPTION 1
Technical Team of
PT. Samuel International

Key assumptions
Waste Removal 92,553,628 12 Coal Prices $ 58.41 FOB Mother Vessel
Coal Mining 18,510,726 13 Yield Production Recovery 95%
Stripping Ration 5.0 14 Royalty to GOI 5.0% of revenue
13 Tax rate 10%
Puteri Dua Kutor 14 Depreciation method Unit of production
Option KPC Transhipment = Production max 2,000,000 MT
Plan of Develoment
Year Year Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
(Mton)
Puteri Dua Kutor 1.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.5

Total 1.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.5

Coal Price
Year Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Scenario 1 (Stable @0%) Puteri Dua Kutor 58.4 58.4 58.4 58.4 58.4 58.4 58.4 58.4 58.4 58.4
Scenario 2 (Increase @2.5%) Puteri Dua Kutor 58.4 59.9 61.4 62.9 64.5 66.1 67.7 69.4 69.4 71.2
Operating Cost

Scenario 1 (Stable @0%) 29.6 29.6 29.6 29.6 29.6 29.6 29.6 29.6 29.6 29.6
Scenario 2 (Increase @2.5%) 29.6 30.3 31.0 31.8 32.6 33.4 34.3 35.1 35.1 36.0

Revenue (net 95% recovery)

Year Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Scenario 1 Puteri Dua Kutor 55.49 110.99 110.99 110.99 110.99 110.99 110.99 110.99 110.99 83.84

Price stable
Cost Stable 55.49 110.99 110.99 110.99 110.99 110.99 110.99 110.99 110.99 83.84

Royalty to GOI (13.5%) Puteri Dua Kutor (7.15) (14.30) (14.30) (14.30) (14.30) (14.30) (14.30) (14.30) (14.30) (10.80)

Scenario 2 Puteri Dua Kutor 55.49 113.76 116.61 119.52 122.51 125.57 128.71 131.93 131.93 102.15

Price @ 2.5%
Cost @2.5% 55.49 113.76 116.61 119.52 122.51 125.57 128.71 131.93 131.93 102.15

Royalty to GOI (13.5%) Puteri Dua Kutor (7.15) (14.69) (15.10) (15.51) (15.94) (16.37) (16.82) (17.28) (17.28) (13.40)

Operating cost/ton Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Stable Puteri Dua Kutor (29.55) (59.10) (59.10) (59.10) (59.10) (59.10) (59.10) (59.10) (59.10) (44.64)

Puteri Dua Kutor (29.55) (60.58) (62.09) (63.64) (65.24) (66.87) (68.54) (70.25) (70.25) (54.39)
Escalate 2.5% @ year

13
 PRODUCTION COST OPTION 2
Technical Team of
PT. Samuel International

Key assumptions
Waste Removal 92,553,628 12 Coal Prices $ 58.41 FOB Mother Vessel
Coal Mining 18,510,726 13 Yield Production Recovery 95%
Stripping Ration 5.0 14 Royalty to GOI 5.0% of revenue
13 Tax rate 10%
Puteri Dua Kutor 14 Depreciation method Unit of production
Option Muara Rapak = Production max 2,000,000 MT
Plan of Develoment
Year Year Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
(Mton)
Puteri Dua Kutor 1.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.5

Total 1.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.5

Coal Price
Year Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Scenario 1 (Stable @0%) Puteri Dua Kutor 58.4 58.4 58.4 58.4 58.4 58.4 58.4 58.4 58.4 58.4
Scenario 2 (Increase @2.5%) Puteri Dua Kutor 58.4 59.9 61.4 62.9 64.5 66.1 67.7 69.4 69.4 71.2
Operating Cost

Scenario 1 (Stable @0%) 38.1 38.1 38.1 38.1 38.1 38.1 38.1 38.1 38.1 38.1
Scenario 2 (Increase @2.5%) 38.1 39.0 40.0 41.0 42.0 43.1 44.1 45.3 45.3 46.4

Revenue (net 95% recovery)

Year Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Scenario 1 Puteri Dua Kutor 55.49 110.99 110.99 110.99 110.99 110.99 110.99 110.99 110.99 83.84

Price stable
Cost Stable 55.49 110.99 110.99 110.99 110.99 110.99 110.99 110.99 110.99 83.84

Royalty to GOI (13.5%) Puteri Dua Kutor (6.62) (13.25) (13.25) (13.25) (13.25) (13.25) (13.25) (13.25) (13.25) (10.01)

Scenario 2 Puteri Dua Kutor 55.49 113.76 116.61 119.52 122.51 125.57 128.71 131.93 131.93 102.15

Price @ 2.5%
Cost @2.5% 55.49 113.76 116.61 119.52 122.51 125.57 128.71 131.93 131.93 102.15

Royalty to GOI (13.5%) Puteri Dua Kutor (6.62) (13.64) (14.05) (14.46) (14.89) (15.32) (15.77) (16.22) (16.22) (12.61)

Operating cost/ton Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Stable Puteri Dua Kutor (38.07) (76.14) (76.14) (76.14) (76.14) (76.14) (76.14) (76.14) (76.14) (57.51)

Puteri Dua Kutor (38.07) (78.04) (79.99) (81.99) (84.04) (86.15) (88.30) (90.51) (90.51) (70.07)
Escalate 2.5% @ year

14
 NPV & CASH FLOW ANALYSIS
Technical Team of
PT. Samuel International

Option Cash Flow Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 INPUT DATA

1 Via Sepasu (2.24) (9.47) 3.25 35.12 66.98 98.85 130.71 162.57 194.44 226.30
2 Via Muara Rapak (2.64) (13.70) (9.53) 8.74 27.01 45.29 63.56 81.84 100.11 118.39 RESOURCES TON 18,510,726 18,510,726
OPTION 1 OPTION 2
PARAMETER UNIT
Via Sepasu Via Muara Rapak
PDK NPV BALANCE
SUMMARY POTENTIAL OPTION STRIPPING RATIO BCM/T 5.00 5.00
COAL PRICE US$ 58.41 58.41
230.00 230.00

CAPEX US$ 12,546,991 18,847,741

OPEX US$/T 32.20 40.52
ROYALTI US$/T 2.65 2.45
180.00 180.00
IRR (5 Yrs Plan) % 142.39% 43.36%
NPV (5 Yrs Plan) US$ 61,083,449 25,732,959

IRR (LOM) % 155.85% 75.70%

NPV (LOM) US$ 136,875,401 69,173,927
130.00 130.00
US$ MILLION

Production Scale Mtpa 2.00 2.00

Life of Mine Year 9.26 9.26

80.00 80.00
Rate Exchange IDR 9000
Discount Factor % 12%

30.00 30.00

(20.00) (20.00)
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Via Sepasu (2.24) (9.47) 3.25 35.12 66.98 98.85 130.71 162.57 194.44 226.30
Via Muara Rapak (2.64) (13.70) (9.53) 8.74 27.01 45.29 63.56 81.84 100.11 118.39

15
 CONCLUSION
Technical Team of
PT. Samuel International

 PT Dua Puteri Kutor (DPK) located at Bengalon, East Kutai District, East Kalimantan totaling area 12,830 Ha
 Accessibility location approx. 223 km from city of Samarinda using Land travel
 Logistic Route Distance approx. 40km or 77km for hauling, 70km or167km for barging to KPC or Muara Berau
 Quantity for Resources totaling 18.5 Million ton. Still need detail exploration & expansion to increase number of
resources & reserves status
 There is overlapping area with Forestry (Intag 1992) approx. 5,529 Ha all area overlap with CA Muara Maau, all area
overlapping with PT. Taraco Mining (indicated a relinguishment area) and no other information about forestry
company, plantation & oil and gas company. Need to further investigation for this matters.
 There is two option of Logistic,
 1st : Using Public road along 40km to Sepasu Port, require capital about US$ 12.5 Million, and Opex about US$
32.2/t incl. hauling fee to government (assume US$ 0.025/t) will produce good NPV (5 yrs period) US$ 61.1
Million and LOM NPV US$ 136.9 Million
 2nd : Using public coal haul road along 103km to Muara Rapak, require more capital US$ 18.5 Million, and
Opex about US$ 40.5/t incl. hauling fee to government (assume US$ 0.025/t) will also make good NPV (5yrs
period) US$ 25.7 Million and make LOM NPV US$ 69.2 Million.
Recommendation:
 Need further investigation about land uses status (Forestry company, plantation & oil and gas company) to make sure
the KP has clean & clear.
 Required to further onsite geology investigation (mapping & check drilling) in order to find indicated & measured
resources & also reserves number.
 Required further detail drilling to make sure the proven & probable reserve (Mineable reserves).
 Required further information about typical coal quality (conduct preliminary & detail sampling and laboratory test)
 Required information about detail survey for haul road & bathymetry of Sungai Sepasu (Opt. 1) and Sungai Muara
Rapak (Opt. 2) to determined the detail logistic cost
 Detail mining cost and business plan can be provided after conducting geological modelling & other technical data has
been completed.
16
 Technical Team of
PT. Samuel International