Overview of Operations

The Company operates six concession areas: five in East Kalimantan province and one located between the border of East Kalimantan province and Central Kalimantan province.

As of December 31, 2008, the Company estimated total Coal Reserves of 312.01 million metric tons. ITM is using independent mining consultant in assessing its resources and reserves.

The Company, through PT Indominco Mandiri, operates the Bontang Coal Terminal in East Kalimantan, capable of servicing vessels up to 95,000 Dead Weight Tons (DWT). The Company also operates Barge Ports at the PT Trubaindo Coal Mining’s, PT Jorong Barutama Greston’s and Kitadin Embalut’s concession areas.

PT Indominco Mandiri

PT Indominco Mandiri was established on November 11, 1988. Signed Coal Contract of Work (CCoW) with the goverment and latest hold an area of approximately 25,121 hectares in the Bontang, Kutai Kertanegara and East Kutai regencies in East Kalimantan. The coal found in these areas is of the Balikpapan Late Miocene and Pulau Balang formations. PT Indominco Mandiri is one of the largest producers of coal in Indonesia and produced 10.7 million tonnes or 61% of total coal produced in 2008.

Within the mining area, a haul road of 35 km long connecting the port stockpile to the operations area has been built.

PT Indominco Mandiri produces coal with a calorific value of approximately 6,300 kcal/kg making it suitable for generating electricity. PT Indominco Mandiri is currently in the process of completing a feasibility study for underground mining.

PT Trubaindo Coal Mining

PT Trubaindo Coal Mining was established on March 13, 1990 as a coal mining company and signed Coal Contract of Work with government and currently holds area of approximately 23,650 hectares located in the district of Muara Lawa, Bentian Besar, Muara Pahu and Damai, West Kutai Regency, East Kalimantan. The coal mined are of the Pamaluan and Kutai Basin formations with a calorific value that ranges from 6,500 to 7,300 kcal/kg and is extremely suitable for coal based electricity and industrial plants.

There is a 37 km haul road within the concession area to haul coal between port stockpile and the mine stockpile. PT Trubaindo Coal Mining also operates its own Barge Port on the Bunyut River. PT Trubaindo Coal Mining produces 4.5 million tonnes or 25% of ITM’s total coal production.

PT Bharinto Ekatama

PT Bharinto Ekatama was established on January 9, 1996 and signed Coal Contract of Work with the goverment and currently holds an area of approximately 22,000 hectares in the Kutai Barat and Barito Utara Regencies in East and Central Kalimantan.

Based on a letter dated August 13, 2007, PT Bharinto Ekatama has been authorized (retroactively effective since June 30, 2006 and ending on June 29, 2009) by the government to start construction of the infrastructure required for mining operations in its concession area.

PT Kitadin

PT Kitadin was established on January 25, 1978. PT Kitadin is granted concessions to conduct mining, hauling activites and selling the coal from its mine: Embalut and Tandung Mayang. PT Kitadin produces coal with a calorific value that ranges from 5.800 - 6.700 kcal/kg.

Kitadin Embalut

The mining concession area of Kitadin Embalut spans an area of 2,973 hectares in the village of Embalut, Tenggarong District, East Kalimantan approximately 30 km south of Samarinda.

The mine has a crushing plant as well as a washing plant to process the coal mined from the open pits. The coal formations found in the concession area of this company are of the Balikpapan type with a low to medium calorific value that is suitable for electricity generation.

In 2006, the operations of Kitadin Embalut were suspended temporarily.

Kitadin Tandung Mayang

The Kitadin Tandung Mayang concession area is approximately 2,388 hectares and has been in operation since 1998. It is located in Tandung Mayang, East Kutai Regency, East Kalimantan and to the North of PT Indominco Mandiri’s concession area. Besides holding a mining concession, Kitadin Tandung Mayang is also authorized to conduct operations as a mine contractor for PT Indominco Mandiri.

PT Jorong Barutama Greston

PT Jorong Barutama Greston was established on May 10, 1991 and signed Coal Contract of Work (CCow) with the goverment and currently holds an area of approximately 11.478 hectares, located approximately 104 km to the south of Banjarmasin. PT Jorong Barutama Greston comprises of a network of open pit mines yielding coal of the Warakin formation. The coal is mostly low in sulfuric content and has a calorific value of 5,300 kcal/kg.

PT Jorong Barutama Greston has 2 crushing plants. Coal from the first plant is specifically used for the Asam-Asam Power Plant, while coal from the second plant is sent via conveyor to barges and then shipped to customers or to the Bontang Coal Terminal or other ports.