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CONFIDENTIAL
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LocationLocation
KPC Coal Agreement Area
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The CompanyThe Company
KPC is an Indonesian incorporatedcompany
In 1982 KPC entered into a CoalContract of Work with the Governmentof Indonesia
Commenced construction in 1989
Commenced mining operations in
1991
Production has increased from 7 Mt in1992 to 39.7 MT in 2007 and planned toincrease to 41 MT in 2009
In 2003 Bumi Resources, publiclylisted Indonesian company purchasedKPC from BP and Rio Tinto
Fully integrated and self supportingoperation
KPC employs 3,800 people
Additional 17,300 people employed bycontractors
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Thick clean deposits with low Ash and SulfurNine principal seamsSeam thickness varies 0.5 metres to 15.0 metresSeam dip varies between 3 to 20Seam product direct or blended to produce range of GARproducts
Prima 6700Pinang 6300 to 5700Melawan 5350
Pinang Dome
Geological structurethat elevated the rank
of surrounding coalmeasures
KPCKPC -- Coal DepositCoal Deposit
Coal Products: Prima 6700, Pinang 6300 5700, Melawan 5350
June 2008 Resources & Reserves (Mt)
Recoverable ReservesTotal 1,661 Mt :Sangatta 1,515
Bengalon 146
Measured & Indicated Resources(additional to Reserves)
Total 4,424Sangatta 3,447
Bengalon 976
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Mining OperationMining Operation
DRAWNBYDRAFTINGSECTION-P&T-BINTANG/LOGO3.CH3
DRAWNBYDRAFT INGSECT ION-P&T-B INTANG/LOGO3 .CH3
Truck and Shovel, Multiseam Pit Operations
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Overburden CapacityOverburden Capacity
5 to 6 M32Komatsu PC 1000
8 M33Hitachi EX1800
15 to 16 M34Hitachi EX 2500
22 M310Hitachi EX3500
5 (Coal bucket), 8
(OB bucket)
4Liebherr 984C
30 to 34 M312Liebherr 996
Shovels, m3
9 x 85 ton, 6 x 100ton
15Komatsu HD785
360 T12Liebherr T282
240 T6830E
240 T30EH 4500
85 T23Caterpillar 777
185 T56Caterpillar 789
135 T58Caterpillar 785
Trucks, tons
CapacityCapacityUnitsUnitsKPC OwnedKPC Owned
EquipmentEquipment
Overburden Capacity - 335 million BCM/annum: KPC 140, Thiess 90, PAMA 45, Dharma Henwa 60
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KPCKPC -- Coal MiningCoal Mining
Coal is mined using smaller shovels and trucks - Average Strip Ratio 8:1
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Coal ChainCoal Chain
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Coal Transportation and Loading FacilitiesCoal Transportation and Loading Facilities
KPC has complete facilities to provide full coal mining and transportation solutions
13 km Overland Conveyor rated
capacity 4,200 tph
Single belt, 8.5 m/s speed
Coal delivered to port in 25
minutes
Stockpile capacity of 1.2 Mt
Stacker capacity of 4,000 tph
Reclaim capacity of 4,700 tph
Private Port
2 km Jetty
17.2 m draft deep water berth at
low tide
Load vessels up to 220,000 dwt.
Loading rate of 4,700 tph
Ship LoadingPort StockpileCoal Transportation to Loading Port
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Coal Transshipment FacilitiesCoal Transshipment Facilities
Tanjung Bara Barge Loading
2000 tph barge loading facility
Lubuk Tutung Barge Loading
2000 tph barge loading facility
Floating Transfer Station (FTS)
1000 tph floating loading facility
Load up to Capesize gearless vessels
Floating Crane (FC)
500 tph floating loading facility
Load up to Capesize gearless vessels
Combine Loading
Between FTS & FC
Up to 1,500 tph loading rate
Two anchorage loading locations
Tanjung Bara or Lubuk Tutung
1 to 3 km barge travel distances
Short barge cycle times
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KPCKPC -- Technical MarketingTechnical Marketing
Managing Coal Flow and Quality from Pits to Vessel
Providing Technical Assistance to KPC coal end users
Coal Quality
Coal Combustion
Coal Handling & Storage
Quality Assurance is an integral part of KPC and Contractors work
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KPCKPC -- Typical Product Coal QualitiesTypical Product Coal Qualities
454546Hardgrove Grindability Index57506100-67007100Gross air dried kcal/kg
53505700-63006700Gross as received
kcal/kg
CALORIFIC VALUE
0.200.600.60Total Sulphur %
38.040.041.0Volatile Matter (air dried) %
4.56.05.0Ash (air dried) %
18.09.0-13.05.0Inherent Moisture (air dried) %
23.514.0-19.010.5Total Moisture (as received) %
Melawan
Coal
Pinang
Coal
Prima
Coal
TYPICAL COAL QUALITY
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KPCKPC -- Coal Market Overview 2008 SalesCoal Market Overview 2008 Sales
Japan
28.0%
Various Europeans
15.5%
Taiwan
13.9%
India
10.7%
Indonesia
9.3%
Korea
5.2%
China
4.9%
Malaysia
4.8%
Thailand
3.6%
Pakistan
0.5%
Other
12.4%
Chile
1.2%
Philliphines
2.4%
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KPCKPC -- Safety SystemSafety System
Elements: Combination ofNOSA, Rio Tinto, AustralianStandards & Indonesialegislation
Golden Rules: Generic actionrequired by every individual tominimise the risk of personalinjury
High Risk SOP: Detailsspecific actions required tocontrol or avoid a riskassociated with a particulartask or activity
Prima Nirbaya Standard(Includes 11 Fatality Prevention Elements)
Golden Rules
MiningHigh Risk SOP
MaintenanceHigh Risk SOP
Measurement and Monitoring
Database Management System - Prinutama
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KPCKPC -- LTIFR RecordLTIFR Record
39
3635 35
25
2322
1918
31
22
1412
2.86
2.59
2.432.31
1.511.36
1.11
0.93
0.76 0.80
0.50
0.32 0.230
5
10
15
20
25
30
35
40
45
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
No.ofLTI
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
LTIFR
(per1,0
00,0
00Manhours)
LTI
LTIFR
Prima Nirbhaya/NOSA
Implementation
FPE & New Golden
Rules Implementation
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Accredited to ISO14001 by SGS
Awarded Gold Medal by EastKalimantan Government for BestEnvironmental Practices last 5 years
KPCKPC -- Environmental ManagementEnvironmental Management
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KPC enjoys and maintains good relationshipswith our workforce and trade unions
KPC actively provides assistance to the localEast Kutai communities
KPC provides over 5 Million USD annually inCommunity Development Funds and Resources
KPCKPC -- Industrial and Community RelationsIndustrial and Community Relations