coal-assets

OUR COAL ASSETS

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TBR(1)


The TBR concession tenure is held under the Production Operation IUP, which is valid for 8 years until 11 February 2022 and can be extended twice for a period of ten years each. TBR has also applied for the permit to borrow and use forest area and the recommendation letter from the Governor of South Kalimantan to the Ministry of Environment and Forestry was accepted by the ministry.

The Group has signed an agreement with BUMA for as the mining contractor to conduct mining operations of TBR mine. The site preparation and overburden removal is to commence in 1Q2018. The development of the mine and its first coal production is expected to be in 2Q2018. Coal located within the TBR concession may be characterized as a high moisture, variable ash content, low sulphur and low energy coal.

Concession Area
The TBR project area covers a total of 489 ha of land located in the Angsana and Sungai Lohan sub-district, Tanah Bumbu regency, South Kalimantan Province of Indonesia. The concession is situated 185km due Southeast of Banjarmasin, the provincial capital of South Kalimantan. Access to the concession area is via a two-hour domestic flight from Jakarta to Banjarmasin followed by a three-hour car journey along national roads to Angsana and finally a thirty-minute car trip along SDJ roads to the TBR site. The concession is in an area with many operating mines.

 Category   Mineral Type  Gross Attributable to License 1    Net Attributable to Issuer 4  Remarks
Tonnes
(millions)
Grade Tonnes
(millions)
Grade Change from
previous update
2
(%)
TOTAL COAL: 47.2 MILLION TONNES
Reserves 5              
Proved  Coal 40.0 Sub-bituminous
Rank C
39.5 Sub-bituminous
Rank C
0.00% No
change
Probable Coal 3.2 Sub-bituminous
Rank C
3.2 Sub-bituminous
Rank C
0.00%
Total Coal 43.2 Sub-bituminous
Rank C
42.7 Sub-bituminous
Rank C
0.00%
Resources 3 & 5
Measured Coal 48.4 Sub-bituminous
Rank C
47.8 Sub-bituminous
Rank C
0.00% No
change
Indicated Coal 6.7 Sub-bituminous
Rank C
6.6 Sub-bituminous
Rank C
0.00%
Inferred Coal 1.3 Sub-bituminous
Rank C
1.3 Sub-bituminous
Rank C
0.00%
Total Coal 56.4 Sub-bituminous
Rank C
55.7 Sub-bituminous
Rank C
0.00%

Notes:
1 License refers to TBR Production Operation IUP.
2 Previous coal reserves and resources estimates were reported as at May/March 2016, respectively.
3 Resources are inclusive of reserves.
4 The results presented are rounded to reflect the accuracy of the estimates. Minor discrepancies are due to rounding and are not considered material by SMGC.
5 Reserves and resources are reported in accordance with SMGC’ interpretation of the JORC Code 2012 Edition.