PT. Bumi Resources Tbk.

In 2009, PT Arutmin Indonesia (“Arutmin”) posted a production, sales, and efficiency in five mining areas; Batulicin, Senakin, Satui, Mulia and Asam Asam. Through these mines, Arutmin’s total coal production in 2009 was 19.30 million tonnes, which increased by 3.90 million tonnes in comparison to 2008.

The licensing constraint facing Arutmin is one of the obstacles to increasing our coal reserves. On the other hand, coal production activities which were improved in 2009, increased the amount of coal stocks compared to 2009.

The distance between the mining location and the port that is owned by the company - North Pulau Laut Coal Terminal (NPLC) in the North Shore of Laut Island - improved cost efficiency, especially in transportation and distribution costs. Moreover, application of the latest technology also significantly increased cost efficiency and production. Arutmin’s open-pit area, characterized by soft coal surface and low to medium strip ratio have helped Arutmin to achieve a total production cost of USD 31.99 per tonne in 2009.

In general, the volatility of coal prices which occurred throughout 2009, had an impact on the mining companies’ sales revenue. In these conditions, the type and quality of coal became an important factor in the pricing process which has a direct impact on revenue. Since Arutmin’s produces a substantial amount of bituminous coal, the average price can be sustained at a medium level of US$ 58.15 per tonne – an advantage for Arutmin. Meanwhile, the market price for 6,500 kilocalorie coal in 2009 was approximately US$ 70 per tonne.

In order to offset the decreasing demand for spot coal sales, Arutmin continues to increase sales through long-term contracts with consumers. Throughout 2009, Arutmin’s contract sales volume reached 10.7 million tonnes.