Business Units PT. PT Bumi Resources Tbk

Business Units PT. PT Bumi Resources Tbk :

1. Arutmin Indonesia
   
   Since 1981, Arutmin was licensed to explore, produce and market coal in an area known as Block 6 in the south-east past Kalimantan, based on a first generation Coal Contract of Work (“CCOW”). Arutmin holds right under the CCOW to mine coal in a concession of approximately 70,153 ha for 30-year operating period since it’s commenced on October 1, 1998.
   
   Arutmin is currently one of Indonesia’s most prominent coal mining companies, which exports a substantial portion of its mined coal to international markets. It produces high quality bituminous coal in the Satui, Senakin, and Batulicin mines with high calorific value and low to medium ash content. It is mostly used by industries and power plants. In addition, it also produces the more economical but lower grade Ecocoal product from its Mulia-Asam-Asam mines. Ecocoal is a cleaner burning sub-bituminous coal characterized by low calorific value and high moisture, but very low ash and sulfur contents which is marketed as a more environmentally friendly coal.
   
   The coal mining operations of Arutmin are conducted by conventional open cut mine methods employing bulldozer, excavator, loaders and trucks. The coal products from Satui and Senakin mines are transported by truck and stockpiled at one of Arutmin’s four barge ports. The final products are conveyed from the barge ports t the North Pulau Laut Coal Terminal (“NPLCT”) at Tanjung Pemancingan by custom built, self-discharging barges or loaded directly onto ocean vessels at offshore barge transshipment anchorage. The NPLCT stockpile has a total capacity of 600,000 tonnes and is capable of handling vessels up to 150,000 DWT at a rate of 4,500 ph.
   
   In order to ensure consistent production of high quality coal to meet customer demands, Arutmin consistently performs tight quality control on its coal products during the entire mining process. This intense monitoring of coal product quality includes four quality checks as the coal moves from the coal face to the barge port stockpiles.
   
   Arutmin’s main advantages are its competitive position in the global market, competitive cost structure due to the strategic location of its mines, which are near to the coast, and its brand name established due to its high coal quality.
   
   
2. Kaltim Prima Coal
   
   
   In 1982, PT Kaltim Prima Coal (“KPC”) located at Sengata, on the East coast of Kalimantan, entered into a Coal Contract of Work (“CCOW”) to explore, produce and market coal from its agreement area in East Kalimantan.
   
   KPC is one of the largest mines of its type in the world. The concession area reaches 90,960 hectares. KPC produces three types of coal: Prima, Pinang and Melawan. Prima and Pinang are high quality bituminous coals with low ash and sulphur content. The coals have excellent combustion performance. Melawan is sub-bituminous coal exhibiting low ash and sulphur characteristics.
   
   At Sengata, KPC has developed a fully integrated and self-supporting mine with a series of open cut pits and coal preparation facilities. The Sengata mine is supported by a 10 MW coal fired power station which is supplemented by five generator sets of 9.4 MW of diesel capacity. The coal at the Sengata mine is delivered to the coal crushing plant where it is crushed and, if necessary, screened and washed at the coal washing plant and placed onto the conveyor belt for transportation to the shipping terminal. The coal crusher consists of seven double-roll single-pass roll crushers 1,200 tph capacity average. Afterwards, the coal is transported from stockpiles adjacent to the coal preparation area to the shipping terminal on the Kalimantan coast by a 13 km overland belt conveyor, which has a nominal handling capacity of 4,200 tph. The coal journey from the coal preparation to the shipping terminal takes less than 30 minutes.
   
   At the coal shipping terminal in Sengata, Tanjung Bara Coal Terminal (“TBCT”), coal is either stacked or directly routed through the stockyard into the shiploaders. The TBCT’s stockpile has a total capacity of 1,200,000 tonnes and is capable of handling vessels up to 220,000 DWT at a rate of 4,700 tph.
   
   At Bengalon, the run-of-mine produced is hauled by the contractors’ trucks over a distance of approximately 25 km to a barge loading facility, here shuttle barges transport the coal to a transloader located offshore.
   
   KPC Ports are the port facilities of KPC, which incorporate the water rights to the Port of Tanjung Bara and Lubuk Tutung, the coal stockpiles, the deep water ocean berths and ship loaders. KPC Ports consists of TBCT, FTS, FCS, TBT, and LTT.
   
   * The Tanjung Bara Coal Terminal (TBCT), the main port, is the wharf with the twin quadrant ship loaders that has been in operations since 1991.
   
   * The Floating Transfer Station (FTS) is the offshore floating transhipper that discharges the coal from the barges and loads it on to the vessel using its shiploading conveyors.
   
   * The Floating Crane Station (FCS) is the offshore floating crane that discharges the coal from the barges and loads it on to the vessel using its cranes and grabs
   
   * The Tanjung Bara Self-Loading Transhipment (TBT) and Lubuk Tutung Self-Loading Transhipment (LTT) are the anchorage points where the vessels can do self-loading transhipment activities using the vessel’s gear in Tanjung Bara and Lubuk Tutung areas respectively, which will be supported with coal stockpiles, barge loaders, tugs, and barges.
   
   
   All operations within the terminals and transhipment points come under the jurisdiction of the Indonesian Government Department of Sea Communications and all operations are subject to the laws and harbour regulations of Indonesia. KPC Ports are not public ports.
   
   
3. Gallo Oil (Jersey) Ltd.
   
   
   Through Gallo Oil (Jersey) Ltd. (“Gallo Oil”) PT Bumi Resources Tbk currently operates two contract areas for Upstream Oil and Gas Business operation in the Republic of Yemen namely Block R-2 (East Al-Maber) and Blok 13 (Al-Armah). Gallo holds 50% interest in Block R-2 and 100% interest in Block 13.
   
   In the East Al-Maber (Block R-2) Contract Area which covers 2.139 square km, located on the Mukala High, on the western of the Sir Sayun Masila basin, Gallo drilled six exploratory wells, four wells with encouraging hydrocarbon shows, but tested not commercial. Another exploratory well (s) will be drilled in 2009.
   
   In the Al-Armah (Block 13) contract area which cover 7.417 square km, located in the East of Hadramaut, Gallo is drilling the second exploratory well Al-Barakat #1 subsequent to temporarily abandoned of the first exploratory well Al-Risq #1 where extremely high pressure as well as temperature gas encountered at an interval of 4163m- 4271m (TD) carbonates.
   
   
4. Enercorp Ltd
   
   
   PT Bumi Resources owns 50% stake of ownership in Enercop Ltd. (Enercorp), an agency responsible for the marketing of PT Bumi Resources’ energy products (i.e., coal, oil, gas) in the domestic market. In addition to marketing the Company’s coal, Enercorp may also markets coals from other non-related producers.
   
   Enercorp serves PT Bumi Resources in energy and resources marketing as well as establish a trading house to gain access to domestic market. Enercorp’s coal buyers are coal user industries consisting of cement companies, power plants, as well as other middle and large scale industrial companies involved in chemical, mine and textile, among others. In order to cope with the growing market, Enercorp has been receiving engineers for long term coal supplier from Korea, China and India.
   
   Enercorp strives to provide its customers with overall superior quality products and services to meet client satisfaction. It develops resources capability by providing relevant systems and technology to support the achievement of the Company’s objective. It delivers robust profitability by focusing on the market effectively and efficiently, and optimizing resources professionally. Enercorp works to attract and keep talented committees employees who contributed to the success of the Company.