MEDCOENERGIMINING

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F. Hary Kristiono

• 2009 : Head of Business Development & Marketing – Medco Energi Mining International Ltd.

• 2007 : Head of Business Development – Medco Mining Ltd.• 2005 : General Manager – Trada Resources Indonesia Ltd.• 2003 : Logistic & Transport Manager – BHPBilliton Marketing AG.• 2001 : Market Analyst Supt. – BHP Indonesia Ltd.• 2000 : Marketing Strategic Planning Supv. – Arutmin Indonesia Ltd.• 1999 : Market Coord. North Asia & America – Arutmin Indonesia Ltd.• 1995 : Coal Washplant Senior Metallurgist – Arutmin Indonesia Ltd. • 1992 : Coal Analyst – Geoservices Indonesia Ltd.

• Graduated from Mining Engineering, Institute Technology of Bandung, majoring in Coal Processing

MEDCOENERGIMINING

In Pursuit Coal Value in Use

New Delhi, 22 Aug 2014

Finding Niche Market of High CV and Sulfur Coal

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PT Medco Energi Internasional TbkOur History

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PT Medco Energi Internasional TbkWho are We

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PT Medco Energi Internasional TbkAt a Glance

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PT Medco Energi Internasional TbkDomestic Oil and Gas Business

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PT Medco Energi Internasional TbkInternational Oil and Gas Business

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PT Medco Energi Internasional TbkCoal Mining and Power Plant Business

MEDCOENERGIMINING

In Pursuit Coal Value in Use

New Delhi, 22 Aug 2014

Medco Energi Mining Internasional

MEDCOENERGIMINING

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Coal Resources ProfileFocus in High CV Coal for Foothold

1 DTR2 DTSA

1 2 DTR - DTSA

1,431

4,400

9,000

12,000

17,000

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2009 2010 2011 2012 2013

DTSA

DTR

Total

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Coal Production ProfileAbout One Million Prod Capacity Within 4 Years

Production Plan

Total Annual Production (kT)

2011 2012 2013 2014 2015 2016 2017 20180

100

200

300

400

500

600

700

800

900

1000

0169

634 600 600 600 600 600

0

150300 300 300 300

DTSADTR

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Tenement IUP DTRAll in Place and Secured

1. IPP (Borrow & Use Forestry) Permit from Forestry Dept. by Oct 20112. Private Coal Port Permit by Ministry of Transportation has been obtained by January 20133. East Kalimantan Governor Recommendation for Land Use Permit for 520Ha at Mar 2010.4. IUP Operation & Production : For 1,700 Ha validity from Feb 2010 to Jan 20175. Environmental Impact Analysis Study for 1,700 Ha at January 20106. Feasibility Study for 1700 Ha at Dec 20097. Agreement with Adindo Hutani Lestari for exploration and exploitation at Sept 2009.8. Permit to Enter Forestry Area (IMK) from Ministry Forestry for exploration in forest area at

May 2009 for 1,700 Ha.

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Total Drilling : 662 holes (21,674m), and still adding

Exploration Detail Drilling Dense Holes and Proven Coal

Total Geophysical Logging : 331 holes (10,983m)

Total Topographic Survey: 1.052 Ha Scale 1:1000

Batas Konsesi AHL

Tanaman Akasia AHL

Tanaman Kelapa sawit NJL

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Resources and Reserves13Mio mt Resources & 4Mio mt Reserves

Resources and Reserves 1,700Ha Total (MT)

North Block Resources 378,632

Middle Block Resources 1,046,633

West ,South and SE Block Resources 11,832,430

All DTR Resources (50 m depth) for 1,700Ha 13,248,695

South Block only for 300Ha Reserves (SR 1:15) 2,400,000

North Block

Middle Block

All South Block

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Medco Bara CoalTotal 15 of 21 Ship to India and China Cement

Chemical Properties Basis Unit Value Physical Properties Basis Unit ValueTotal Moisture ARB % 10.0 Hard Grove Index 48.0Specific Energy Fuel Ratio 1.1Calorific Value GAD kcal/kg 6,800 Fusibility of Ash : Deformation Temparature Reducing 1250Calorific Value GAR kcal/kg 6,500 Calorific Value NAR kcal/kg 6,200 Base % DB 26.4Proximate Acid % DB 61.8Inherent Moisture ADB % 6.0 Base / Acid ratio DB 0.4Volatile Matter ADB % 43.0 Slagging index (B/A*%S dry in coal) DB 1.5Fixed Carbon ADB % 44.0 Fouling index (B/A*%Na2O in ash) DB 0.5Ash ADB % 10.0 Ash AnalysisTotal Sulphur ADB % 3.5 SiO2 DB % 35.7Ultimate Al2O3 DB % 25.1Carbon DAF % 84.0 Fe2O3 DB % 12.6Hydrogen DAF % 6.0 CaO DB % 5.9Nitrogen DAF % 1.5 MgO DB % 5.8Sulphur DAF % 4.2 Na2O DB % 1.2Oxygen + Errors DAF % 4.8 K2O DB % 0.9Trace Element TiO2 DB % 1.0Chlorine ADB % 0.01 Mn3O4 DB % 0.1Fluorine ADB ppm 80.0 P2O5 DB % 0.9Phosporus in Coal adb % 0.04 SO3 DB % 10.6

Slag and Ash Deposit Characteristic

In accordance with current ASTM standards

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PT. DTR coal quality is analyzed by PT. Sucofindo

Standard : ISO and ASTM

Test Method : Rapid and Standard Test

Lab : Tarakan Lab and PMJ site Lab

Man Power :

Management Stockpile :

To provide Management Stockpile for PT. DTR to ensure coal quality target achieve

No Position Person

1234

Coal TechnologistAss. Coal TechnologistProduction SupervisorAss. Production

1319

Total Man Power 13

Quality Management Pit to PortPoint Sampling 3 and Samples 150 lot for 50kt Coal

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Quality Management Pit to PortDaily Report Sent to Buyer before Vessel ETA

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Quality Management Pit to PortQuality Assurance Performances

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Coal Marketing StrategyIndonesia High Sulfur Coal Producer

0

10

20

30

40

50

60

70

80

90

100

Co

al P

ric

e F

OB

V $

/mt

Production Capacity Mio mt per annum145 9 126 11 13

Gu

nu

ng

Ba

ya

n

Me

dc

o C

oa

l

SK

B C

oa

l

Ba

ng

unCo

al

Mu

lti

Co

al

Mid

dle

TS

TS

A C

oa

l

Mu

lti

Co

al

Hig

h

Bayan

Medco

SKBBangun

Multi MiddleTSA

Multi High

1.5

2.0

2.5

3.0

3.5

4.0

5500 6000 6500 7000 7500

TS-A

DB (%

)

CV-GAR (Kcal/kg)

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Coal Marketing StrategyUtilization High Sulfur Coal: Cement & Smelting Plant

Portland cement is formed from a predetermined homogeneous mixture of raw materials comprising lime (CaO), silica (SiO2) and a small proportion of alumina (Al2O3) and iron oxide (Fe2O3). In the cement production process, the above raw materials are preheated, calcined and sintered to form clinker. Gypsum (CaSO4) is added to the clinker for controlling the setting time of the cement. The use of high sulfur coal give some benefits for cement production process. High sulfur coal must have higher heating value since combustion of sulfur produce more energy. Sulfur in coal release SO2 that reacted with CaO in calciner and kiln to produce gypsum or CaSO4. In addition coal ash contains lime (CaO), silica (SiO2), alumina (Al2O3) and iron oxide (Fe2O3) which is required in cement production. Thus the use of high sulfur will have significant contribution to the energy and raw material cost reduction in cement manufacturing process.

smelting

Converting

Calcinedcopper ore

High sulphur coal

Air

Slag to dumpMatte ( +40% Cu)

Blister copper (+40% Cu)

Air

Off gas

Off gas

Sulphuricacid plant

Smelting of sulphide ores not only produce metal but also energy. Oxydation of sulphur of the ore produce energy to be used for the smelting although additional fuel is needed to maintain the reactor at high temperature. As the content of sulfur in the ore is about 30% (Copper or case), the flue gas contain high concentration of SO2 which should be processed to yield sulfuric acid. Currently 20% of world sulfuric acid production is come from smelter. The use of high sulfur coal as fuel for the smelter will increase the production capacity of sulfuric acid plant.

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Coal Marketing StrategyHigh Sulfur Coal vs Petcoke

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Logistic and Transport PlanShortest route and ease delivery

Port Load Out:- Width River : 100 m - Depth River (Mid) : 5.5 m

Anchorage Point:- Max. Load Rate : 8,000

tpd - Depth Anchorage : 16.0 m

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Private Port Load OutVessel Performance 75% Dispatch Position

Barge Loading Plan

Details Port : ROM Stockpile Cap : 60 kt Crushing Stockpile Cap : 60 kt Crushing Plan Cap : 300 tph Barge Loading Conveyor: 1,000 tph

Year Average (Day)Load Time Vessel Hour Vessel Hour

2012 7.20 1 1.16 2 (25.39)2013 6.10 8 93.36 2 (23.26)

2014 - Q1 6.24 2 19.60 1 (23.45)Target at Load Rate 8,000 mt per day for Supramax 55kt is 6.90 day

Despatch Demmurage

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Coal Mining ActivityFull Capacity of 55Kt per month

OB Removal & Coal Getting Mining Activities

Highlight : 1. Coal Quality Control managed by Sucofindo2. Proven Production rate at 55kt of coal per month

Coal Quality Control at Pit Reclaim & Revegetation Transshipment at Anchorage

Product StockpilePit & Camp Situation

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Coal Crushing Plant- 300 tph

Highlight :1. Coal Crushing Plant 300 tph 3. Total Shipment at 21 Shipment up to now2. Barge Loading Conveyor – 1000 tph 4. Market Destination to China & India

Port Progress and ActivityExcellent Performance up to now : 21 Shipments

Maiden Shipment Crushed Product PileBarging to Anchorage

PRODUCT PILE

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Non Staff Camp

Engineering RoomAdmin Room

Staff CampOffice

Infrastructure Progress & ActivityDTR Camp and Office

Clinic and Mosque

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F. Hary Kristiono – Head of Business Development & Marketing

f.hary.kristiono@medcoenergi.com

Mobile +62 812 821 9517

PT Medco Energi Mining Internasional

Tel +62-21 2995 3279 Fax +62-21 821 1381

The Energy Building 51st floor SCBD Lot 11AJl. Jend Sudirman Kav. 52-53Jakarta 12190, Indonesia

www.medcoenergi.com

Thank You