Location

The 2,832 hectare Coal Concession is located approximately 20 km west of the city of Muara Bungo in Sumatra. It is about 280 km by road to the west of the city of Jambi and about 300 km to the east of the city of Padang. The city of Muara Bungo is about 5 hours by road from Jambi and about 6 hours by road from Padang.
 Figure2: Location of Muara Bungo, Sumatra
           

Figure3: Map of the Concession Area, including Mampun Pandan

Current Operations

Mining operations have only commenced ramping up to significant production rates since April 2007, with production prior to this having been conducted on a small scale. As such the coal deposit remains relatively untouched by mining operations. The geology of the deposit enables flexible mining operations using the truck and excavator methods. This results in the operation remaining flexible with regards to mine planning options.

Mining activities commenced in the C Seam in the East area in April 2006. Total coal extracted from January 2006 up until December 2007 was 1.22 million Mt as follows:

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