Coal Mining Project at Nabire-Papua, Indonesia

[Mr. M]

Ridwan Achmadi 

PT. KARYA SUKSES ABADI

Apart Greenbay Pluit Tower D DK 10 , Indonesia

Cell : +62813 989 16836  ; PIN BB : 29A2D2F5   ; YM: rriiddwwaann

Subject: Coal Mining Project at Nabire-Papua, Indonesia

 

Dear Sir,

 

I got IUP( coal & minera(gold), in our ares there are too much golds, if you see CNC registration, around my areas, there are many gold company from, Australia, China, Poland, Indonesia.

 

So now I am making new PMA company to apply IUP Gold explorasi, so your investor also can join this gold mine.

 

 

We, would like to offer the Joint Venture or Joint Operation scheme for coal concession (IUP) which is owned by PT. Inko Bersatu International (IBI) at Nabire region, Papua, Indonesia, with the following data, terms, and conditions :

1). Current IUP name is PT. Inko Bersatu International (IBI).

The previous/former IUP name was PT. Indo Primadona Perkasa (IPP).

When IBI bought the IPP's coal concession then the name of IUP has officially changed from IPP to be IBI and the coordinates of IBI are exactly the same with the coordinates of IPP.

Henceforth, the name of IPP used by the owner (Mr. Kim Hyeong Geun) for palm oil plantation at the adjacent area of IBI coal concession.

2). The majority shares of PT. IBI is owned by Mr. Kim Hyeong Geun (99.87%).

PT IBI is PMA company and has officially registered in BKPM Indonesia.

3). The IUP is located at Nabire district, Papua, Indonesia.

The existing permit is IUP Exploration and covers the total exploration area of 5,000 hectares.

This permit is valid up to 27 May 2014.

100% IUP area is located at Production Forest area and need special Forestry Permit for exploration and production stages.

IBI has already possessed the forestry permit for carry out the geology survey (exploration) and drilling.

4). The IUP has already registered in Clean & Clear status list of Indonesia Mining & Energy Department.

5). General Coal Quality of IUP PT. IBI is as follows:

Total Mositure (ARB) averagely is 20%, max. 30%.

Inherent Moisture (ADB) = 9% - 11%.

Fixed Carbon (ADB) = +/- 37.5%

Ash content (ADB) is 1.32% - 6%.

Total Sulphur (ADB) is 0.5% - 1%.

Calorie (ADB) = 5000 - 5510 kCal/kg

Calorie (GAR) = 4100 - 4921kCal/kg (average calorie of +/- 4500 kCal/kg)

6). Several coal seams with the average dipping of 15 - 25 degrees and the coal thickness up to 6-7 meters.

7). The coal resources is +/- 514,000,000 million tones in total projected exploration area of +/- 3600 hectares (based on geology survey report, in the email attachment).

By considering the validity of topography contour density, then the minimum guaranteed resources is corrected to be +/-300,000,000 tones.

The minimum guaranteed coal reserves are approx. 30 million tones based on average geological stripping ratio of 5.0.

8). The hauling distance from IUP to nominated jetty location at Nusi is approx. 25 km.

The barging distance from jetty to mother vessel anchorage point is about 1 nautical miles and adequate enough for cape-size vessel.

9). Business scheme proposal by PT. IBI - SCHEME 1 :

• Joint Venture; the maximum share to be sold is 70%.
• The transaction value will be based on minimum guaranteed coal reserves of 30,000,000 tones and the valuation value of USD 1.00/MT reserve.
• Total transaction value will be : 70% x 30,000,000 tones x USD 1.00/ton = USD 21,000,000 (according to 70% company shares, 30 million tones reserves and USD 1.00/MT valuation value).
• The valuation value for the exceeding coal reserves amount (> 30 million tones) will be compensated USD 0.5$/MT valuation value to Mr. Kim Hyeong Geun
• Down Payment to IUP owner is 20% of the total transaction value or equal to USD 4.100,000.
• The rest of fund for acquiring 70% shares or equal to USD 16.000,000 shall be stored in the joint (escrow) account, before the execution of detail exploration.
• Henceforth, the payment by investor to the IBI owner will be based on the advance amount of coal resources and reserves during detail drilling. In the same time, the percentage of transferred shares will be equal to the amount of the reserves and payment.
• During the due diligence process, the entire data and permit of IUP and the company (IBI) will be submitted to and stored by an independent notary, who will be designated and agreed by both parties (IBI owner & investor).
• The candidate of investor partner shall provide and show the proof of fund to IUP owner before the signing of sale & purchase agreement.
• The total cost of due diligence, detail exploration, possessing the IUP OP, JORC certification, Pinjam Pakai, etc. up to production stage should be the responsibility of investor partner.

 

10). Business scheme proposal by PT. IBI - SCHEME 2 :

• Joint Operation
• IUP owner fee is USD 7.00/MT, the investor/miner should pay after shipment within 10days
• Down Payment to IUP owner is minimum USD 3,000,000 or equal with 500,000 tones coal in advance when signing date MOA.
• The minimum coal production is 100,000 tones per month by investor/miner
• The investor/miner partner are allowed to have the total coal production up to 10 million tones.
• The total cost of due diligence, detail exploration, possessing the IUP OP, JORC certification, Pinjam Pakai, etc. up to production stage should be the responsibility of investor partner.

11). This IBI concession has also the significant content of gold, copper, zinc, manganese, limestone, etc.

Mr. KIM is now being proposing the IUP for gold.

IBI owner (Mr. KIM) is willing to have open-mind discussion with the investor for any other viable & mutual business schemes.

Your immediate response to this proposal would be highly appreciated.

 

Ridwan Achmadi 

PT. KARYA SUKSES ABADI

Apart Greenbay Pluit Tower D DK 10 , Indonesia

Cell : +62813 989 16836  ; PIN BB : 29A2D2F5   ; YM: rriiddwwaann