Overview of Operations

ITM is a leading Indonesian supplier of coal to the world’s energy markets. We aim to set the highest standards in the areas of GCG, as well as Quality, Environmental and Safety compliance. All of our activities are conducted in close collaboration with local communities and other stakeholders.

Since our establishment in 1987, ITM has become known as a premium coal producer and has built a diversified base of customers. In 2001, we were acquired by the Banpu Group of Thailand and at the end of 2007, we went public.

Today, ITM comprises integrated coal mining, coal processing and operational logistics in Indonesia. The Company holds majority ownership in five subsidiary companies, operating six concessions on the island of Borneo, in the Indonesian provinces of East, Central, and South Kalimantan. We also own and operate a coal terminal in Bontang, three barge loading facilities, and a power plant.

Of these five companies, PT Indominco Mandiri, PT Trubaindo Coal Mining and PT Jorong Barutama Greston and PT Kitadin (Embalut) are in the production stage, while PT Bharinto Ekatama and PT Kitadin (Tandung Mayang) are targeted to begin production in 2011.

PT Indominco Mandiri is a 99.99% owned subsidiary which was established on November 11, 1988 and holds a Coal Contract of Work (CCoW) signed with the Government of Indonesia for an initial area of 100,000 hectares which was gradually relinquished to leave 25,121 hectares, in the Bontang, Kutai Kertanegara and East Kutai regencies of the province of East Kalimantan. This area is divided between 18,100 hectares in the West Block and 7,021 hectares in the East Block. Both blocks have entered the production phase and the CCoW is valid until October 5, 2030. The coal in these blocks has a value of 6,000 - 6,300 kcal/kg coal and was formed along the Balikpapan Late Miocene and Balang Island formations. The sub-bituminous coal has calorific value ranging from 6,000 to 6,500 kcal/kg and sulfur content of 0.8-1.6%.

PT Trubaindo Coal Mining is a 99.99% owned subsidiary which was established on March 13, 1990 and holds a CCoW signed by the Government of Indonesia for an initial area of 100,000 hectares which was gradually relinquished to 23,650 hectares in the districts of Muara Lawa, Bentian Besar, Muara Pahu and Damai of the regency of West Kutai in the province of East Kalimantan. The coal exploitable by this 30-year contract, which was valid from the start of production on February 28, 2005 until February 27, 2035, was formed in the Pamaluan and Kutai Basin formations, and has calorific value ranging from 6,500 to 7,300 kcal/kg and sulfur content of 0.8-1.4%.

PT Jorong Barutama Greston is a 99.67% subsidiary which was established on May 10, 1991 and holds a CCoW from the Government of Indonesia for an initial area of 100,000 hectares which was gradually relinquished to 11,478 hectares, located 100 kilometers south of Banjarmasin, the provincial capital of South Kalimantan. The coal in this area, which began production on December 10, 1999 with a CCoW valid until December 9, 2029), has a calorific value of 5,300 – 5,800 kcal/kg and sulfur content of 0.3%, and lies in the Warakin formation.

PT Kitadin is a 99.99% owned subsidiary which was established on January 25, 1978 and holds two coal Mining Rights (KP) for Embalut valid from February 25, 2009 – February 25, 2013; and for Tandung Mayang valid from May 28, 2008 – May 28, 2018.

PT Kitadin (Embalut) covers 2,973 hectares in Embalut village, Kutai Kartanegara regency, East Kalimantan. The coal is sub-bituminous with a calorific value of 5,850 kcal/kg and sulfur content of 0.2%.

PT Kitadin (Tandung Mayang) has a concession area of 2,338 hectares and is located in Tandung Mayang, in the regency of East Kutai, East Kalimantan. The coal has a calorific value of 6,700 kcal/kg and sulfur content of 1.5%. It also operates as a mining contractor, specifically for the PT Indominco Mandiri concession.

PT Bharinto Ekatama is a 99.00% owned subsidiary which was established on January 9, 1996 and holds a CCoW signed with the Government of Indonesia on November 20, 1997 for 93,100 hectares initially, which was relinquished gradually to leave 22,000 hectares in the regencies of West Kutai and North Barito in the provinces of East and Central Kalimantan. Authorization to begin construction of the required mining infrastructure was given in mid- 2007. It is presently still in the construction stage. Its sub-bituminous coal has a calorific value of 6,400 – 6,800 kcal/kg and sulfur content of 0.8%. Production is planned for 2011.