KENDILO COAL INDONESIA

Background
PT Kendilo Coal Indonesia (PTKCI or the Company) was established on 31 October 1981 and is the
holder of 1st Generation CCOW under Coal Contract of Work No J2/Ji.DU/46/81 effective 2 November 1981
(CCOW) and is valid until 2024. PTKCI is a foreign investment company 100% owned by Kendilo Coal Inc
(Delaware) (KCI). PT Indocoal Pratama Jaya (IPJ) is currently 100% owner of KCI. BHP Biliton (BHP)
was the former owner of KCI before divesting it to the current shareholder.
Indocoal Pratama Jaya is also the co-owner of PT Singlurus Pratama, which is a joint venture CCoW coal
mining company with Lanna Resources of Thailand.
Location
The CCOW is located in Paser Regency, East Kalimantan,
120 km southwest of Balikpapan. The CCOW consists of 3
deposits: Petangis, Bindu and Betitit. BHP successfully
mined Petangis from 1994 to 2003. Petangis area has been
relinquished back to the government in 2005. The size of
the current CCoW area of Bindu and Betit is 1,869 ha.
Resources
BHP has conducted extensive drilling and geological
studies on Bindu and Betitit. Based on the latest JORC
studies done in 2007 by competent person Michael
Friedrich, the coal resources of Bindu and Betitit are 46
million tons. The mineable reserves is estimated to be 34
million tons at a strip ratio of 1:7
Area
Bindu &
Betitit
Total/Average Bindu

Class
Measured
Indicated
Inferred

JORC Resources
25
20
2
46

Infrastructure
The hauling distance from the mine pit to the jetty is 30 km. 15 km of existing road (IPJ hauling road) will be
upgraded while 15 km of new road will be built. In addition, PTKCI will also build jetty and conveyer belt for
coal loading. The jetty itself is located in Apar Bay which is formerly used by IPJ. The barging distance
between the jetty and the transshipment point is 5 hours.
Washing Process
PTKCI will install a washing plant to lower the ash content. The Company is currently in discussion with a few
coal washing plant suppliers such as DRA from South Africa which also installed the washing plant for BHP
when it mined the Petangis area. Additionally, the Company is also in discussion with Aryan Coal, which is
the largest coal washing plant manufacturer and operator in India.
The coal characteristic of Bindu and Betitit is similar to Sebuku and United Tractors mine which also employ
the use of washing plant. Following the washing process, the CV will increase from 5,500kcal to 6,400kcal.
Capex and Production
The capex requirement for the project is estimated at USD 32 million. The capital expenditure will be needed
to build 15 km of new road, upgrade 15 km of existing road, washing plant, jetty and conveyor.
The project is expected to produce 1.5 million tons of washed coal per year with CV of 6,400 and sulphur of
2.6%. The coal will be marketed as a blending coal suitable for use as thermal coal.
Disclaimer: The foregoing has been prepared on the basis of the information obtained from the Company. Abacus Capital, its directors or employees have not independently verified
this information. It is not intended to be a solicitation for the transaction described therein, and the interested parties should conduct their own due diligence into the information and
affairs of the Company.

STRICTLY PRIVATE AND CONFIDENTIAL