PT. Bumi Resources Tbk.

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.