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LAPORAN AKHIR Final Report

EKSPLORASI BATUBARA DENGAN METODE


Coal Exploration using Geo Electric Method Resistant 2D
GEOLISTRIK TAHANAN JENIS 2D
DI KP. PT. BORNEO OMEGA GRUPE
KABUPATEN PASIR, PROPINSI KALIMANTAN TIMUR
Pasir Regency, Province of East Kalimantan, Indonesia

DIBUAT UNTUK Prepared For

PT. BORNEO OMEGA GRUPE

OLEH By Geo Consult


GEOCONSULT
MEI 2008

1 LAPORAN AKHIR EKSPLORASI BATUBARA DENGAN METODA GEOLISTRIK RES 2D

Final Report Coal Exploration using Geo Electric Method Resistant 2D


DAFTAR ISI Content

Halaman Page

BAB I. PENDAHULUAN Preface 1

BAB II . METODOlOGI PENELITIAN Method of Survey 2


2.1. Alat Yang Digunakan Equipment 2
2.2. Metode Akuisisi Data Lapangan Method to Acquire Field Datas 3
2.3. Pengolahan Data Tahanan Jenis Resistancy Data Process 3
2.4. Interpretasi Data Data Interpretation

BAB III. HASIL SURVEI


3.1. Blok Tiwei Block Tiwei 4
3.3.1 Hasil Inversi 2 D (Profile) Inversion Result 2D (Profile) 4
3.3.2 Perhitungan Volumetrik Volumetric Calculation 7

BAB. KESIMPULAN Conclusion 8

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Final Report Coal Exploration using Geo Electric Method Resistant 2D


DAFTAR GAMBAR List of Pictures

1. Gambar. 2.1. Konfigurasi elektroda survey geolistrik tahanan jenis 2D


Picture 2.1. Configuration of survey geo electric electrode resistant 2D
2. Gambar. 2.2. Susunan elektroda untuk konfigurasi
Picture 2.2. Electrode composition for the configuration
3. Gambar. 3.1. Distribusi Lintasan Blok Tiwei
Picture 3.1. Line distribution Tiwei Block
4. Gambar. 3.2. PROFILE Tiwei 1
Picture 3.2. Profile Tiwei 1
5. Gambar. 3.2. PROFILE Tiwei 2
Picture 3.2. Profile Tiwei 2
6. Gambar. 3.3. PROFILE Tiwei 3
Picture 3.3. Profile Tiwei 3
7. Gambar. 3.4. PROFILE Tiwei 4
Picture 3.4. Profile Tiwei 4

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Final Report Coal Exploration using Geo Electric Method Resistant 2D


BAB I. PENDAHULUAN Preface

Pendugaan keadaan bawah permukaaan bumi dengan metode resistivitas merupakan

salah satu metode geofisika yang sering diterapkan. Metode ini merupakan metode

geofisika yang sering digunakan dalam penelitian untuk mengetahui keberadaan

batubara. Penelitian dengan menggunakan metode resistivitas ini biasanya

menggunakan survei resistivitas 2-D (dua dimensi) karena mudah dalam teknik

pengerjaan di lapangan dan akurat. Dari hasil pengolahan data, penyebaran harga

resistivitas yang didapat berupa penampang secara vertikal dan penyebaran secara
horizontal.

Metode geolistrik adalah metode yang mempelajari sifat aliran listrik di dalam bumi

dan bagaimana mendeteksinya di permukaan bumi. Metode ini melibatkan

pengukuran potensial dan arus yang terjadi secara alamiah maupun akibat injeksi.

Beda potensial diantara kedua elektroda tersebut selain tergantung pada besarnya

arus yang diinjeksikan, juga tergantung pada letak kedua elektroda potensial tersebut

terhadap letak kedua elektroda arus yang dipakai. Dalam hal ini juga pengaruh sifat-

sifat batuan yang melewati arus listrik tersebut. Hal ini menjadi penting karena

tujuan dari pengukuran geolistrik ini adalah mempelajari sifat listrik batuan tersebut.

Dengan demikian keberadaan batubara dapat diidentifikasi dengan metode geolistrik.

Pada metode geolistrik ini akan didapat suatu nilai resistivitas batuan (  ) yang akan

menunjukkan jenis batuan yang diamati. Pada metode ini akan diketahui harga

tahanan jenis pada masing-masing lapisan batuan dan hasil ini kemudian dipakai

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Final Report Coal Exploration using Geo Electric Method Resistant 2D


sebagai dasar untuk menafsirkan jenis batuan masing-masing lapisan dan jumlah

batuan tersebut. Keberadaan batubara biasanya pada kedalaman tertentu, sehingga

dibutuhkan metode yang tepat untuk melakukan identifikasi batuan. Pada eksplorasi

kali ini akan digunakan metode geolistrik dengan pendekatan model dua dimensi

(2D), dengan Konfigurasi Wenner-Schlumberger.

To predict the underground condition of the earth is to using resistivity method. This
is a geophysic method that is commonly used to find out the presence of coal.
Research that utilize resistivity method normally using resistivity 2D survey because
of its simplicity and accuracy.

Geo electric method is a method to study the underground electricity from data
processing and resistivity value that will provide vertical view, horizontal spread and
how to detect it from the surface. This method which includes measurement of the
potentiality and electric current that occurs as normal and as a result of injection.

The potential difference between the two electrodes depends on the amount of
current being injected also the position of the electrodes toward the position of
current being used. In this case, the influence of stone characteristic. This becomes
more important because the objective of measuring geoelectric is to study electric
characteristics of stones. Therefore, the existence of coal can be identified with geo
electric method.

In the geo electric method, value of resistance (p) can be obtained that will show the
type of stone being observed. With this method, value of resistance of each stone
layer will be identified and the result will be used as a base to assess the type of
stone at each layer and its the volume.

The presence of coal normally at a certain depth, therefore a correct method is


required. The method that is used during this exploration is Geoelectric Method with
two dimensions approach model (2D), with configuration Wenner – Schlumberger.

BAB II. METODOlOGI PENELITIAN Research Methodology

2.1. Alat Yang Digunakan The equipments

Peralatan yang digunakan untuk pengambilan data lapangan adalah :

The equipment used to compile the field datas:

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Final Report Coal Exploration using Geo Electric Method Resistant 2D


1. Resistivitimeter tipe Nainura NRD 22S Type Nainira NRD 22S resistivity meter
2. GPS GPS
3. Elektroda Potensial dan Arus Potential electrodes & current
4. Kabel Penghubung Cable connector
5. Meteran Meter gauge

2.2. Metode Akuisisi Data Lapangan Applied method to acquire field data

Metode Akuisisi data lapangan yang dipergunakan dalam penelitian adalah

konfigurasi Wenner-Schlumberger, cara ini dipakai untuk mengetahui Variasi harga

tahanan jenis secara lateral dan vertikal, seperti pada Gambar 2.1 dan Gambar 2.2

berikut,

Method used to obtain field data during this survey is a configuration of Wenner –
Schlumberger, this methid is used to know the variation of resistance laterally and
vertically, as seen in picture 2.1 and 2.2 :

Gambar 2.1. Konfigurasi elektroda survey geolistrik tahanan jenis 2-D

Picture 2.1. Configuration survey of geo electric electrode resistant 2D

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Final Report Coal Exploration using Geo Electric Method Resistant 2D


Gambar2.2.
Picture 2.2.Compilation
Susunan Elektroda Untuk
of electrode for Konfigurasi
configuration
Wenner-Schlumberger (Loke, 2004)

Picture 2.2. Compilation of electrodes for Configuration

Untuk nilai tahanan jenis semu (apparent resistivity)  diperoleh dengan persamaan:

Apparent resistivity p is obtained by:

V
 = K ,
I

dengan K = n (n+1) a

K: faktor geometri, K: geometric factor

a: spasi elektroda, a: electrode space

V: beda potensial, v: potential difference

I: kuat arus i: strength of current

2.3. Pengolahan Data Tahanan Jenis Processing Resistivity Data

Hasil pengukuran di lapangan diteruskan ke perhitungan untuk menentukan harga

Setelah diketahui tahanan jenis semu, kemudian dibentuk pemodelan dua dimensi
menggunakan program res2dinv dan untuk mendapatkan bentuk tiga dimensi beserta
volumetrik, didapat melalui rekontruksi menggunakan program rockwork2004.

Result of the field survey is transferred into calculation to define the values.

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Final Report Coal Exploration using Geo Electric Method Resistant 2D


Once Pseudo Resistivity is obtained, two dimension modelling is prepared using
program res2dinv and the three dimension with its volumetric is gained through
reconstruction using Rockwork2004 programme.

2.4. Interpretasi Data Data Interpretation

Untuk Memperoleh hasil interpretasi yang lebih baik, maka diperlukannya data

penunjang yaitu data geologi daerah penelitian serta literature mengenai harga

tahanan jenis batuan. Dari hasil pengolahan data telah diketahui nilai-nilai tahanan

jenis serta kedalaman/ketebalan lapisan bawah permukaan setiap titik pengukuran.

Untuk mengetahui jenis batuan serta litologi daerah penelitian, maka dilakukan

korelasi antar titik pengukuran berdasarkan nilai-nilai tahanan jenis yang diperoleh

dengan data geologi serta literatur yang ada.

In order to obtain better interpretation result, support data is required ie: geology
data of the surveyed area together with literature on the value of stone resistance.
From data processing result, the resistivity values are known as well as the depth /
thickness of each seam in every measuring point.

To know type of stone as well of its lithology of the surveyed area, then correlation of
each measurement point is done based on values of each resistance which is gained
with geology data and existing literatures.

BAB III. HASIL SURVEI Result of survey

3.1. BLOK TIWEI Tiwei Block

Pada Blok Tiwei dilakukan pengukuran tahanan jenis sebanyak 4 lintasan (line).
Daerah yang disurvei pada Blok Tiwe ini adalah melingkupi 72 hektare. Sedangkan
distribusi lintasan dan topografi daerahnya adalah seperti terlihat pada Gambar 3.1
berikut

The measurement of resistance data in Tiwei Block are done on four lines. The total
surveyed area covers 72 hectares. The line distribution and local topography as seen
in Picture 3.1

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Final Report Coal Exploration using Geo Electric Method Resistant 2D


Gambar 3.1. Distribusi Lintasan Blok Tiwei

Picture 3.1. Line distribution of Tiwei Block

3.3.1. HASIL INVERSI 2D (PROFILE) Result of Inversion 2D (Profile)

Profile yang dihasilkan setelah dilakukan pengolahan adalah sebagai berikut:


batubara terdeteksi diberi tanda kotak ( ) pada skala resistivitasnya, diberi
tanda anak panah ( ) pada gambar profilenya.

The profile result from data processing are as follow: detected coal is marked with
rectangular and the resistivity scale is marked with arrow ( ―> ).

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Final Report Coal Exploration using Geo Electric Method Resistant 2D


Gambar 3.2. PROFILE TIWEI 1 (Line-1)

Picture 3.2. Profile Tiwei 1 (Line 1)

Gambar 3.3. PROFILE TIWEI 2 (Line-2a)

Picture 3.3. Profile of Tiwei 2 (Line-2a)

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Final Report Coal Exploration using Geo Electric Method Resistant 2D


Gambar 3.23. PROFILE TIWE 3 (Line 2b)

Gambar 3.23. Profile Tiwei 3 (Line 2b)

Gambar 3.4. PROFILE TIWE 4 (Line 3)

Picture 3.4. Profile Tiwei 4 (Line 3)

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Pada Blok TiweI dapat ditafsirkan bahwa keberadaan seam batubara adalah sangat
potensial hal ini dapat dilihat pada profile yang dihasilkan (Gambar 3.21, 3.22, 3.23,
3.24). Dimana dari profile-profile yang dihasilkan mengindikasikan keberadaan seam
batubara yang menerus, terutama pada Profile 1, 2, dan 3, dengan ketebalan sekitar
2.5 s/d 3,0 meter. Dengan kemiringan lapisan bervariasi antara 300 s.d 350 di lintasan
1, 2 dan 3 sedangkan di lintasan 4 mempunyai kemiringan lapisan yang tinggi 700.
Keterdapatan batubara terekam dikedalaman antara 2 meter s/d 15 meter.

The presence of coal in Tiwei Block is quite potential. As can be seen on the result
profile (Picture 3.21, 3.22, 3.22, 3.24). Whereby the resulted profiles indicate the
existence of continuous coal seams especially in Profile 1, 2 and 3 the thickness vary
from 2.5 to 3.0 meters. Incline position of the seam varies from 30° to 35° on lines 1,
2 and 3. While the line 4 has higher incline position ie: 70°. Coal is found at depth
from 2 meters to 15 meters.

3.3.2. PERHITUNGAN VOLUMETRIK Volumetric Calculation

Untuk mengestimasi cadangan batubara, maka langkah pertama yang dilakukan


adalah dengan cara mengitung volume cadangan. Langkah selanjutnya adalah
dengan mengalikan volume cadangan dengan harga masa jenisnya (berat jenis)
maka akan didapatkan cadangan batubara (berat).Perhitungan volumetrik dilakukan
dengan menggabungkan seluruh PROFILE yang dihasilkan ke dalam Program
Rockwork2004 dengan hasil sebagai berikut:

Batubara yang teridentifikasi berwarna coklat muda ( dengan harga tahanan jenis
800 – 2000 ohm meter) dan coklat tua (harga tahanan jenis 3000 – 5500 ohm meter)

Dari Gambar lintasan 1,2 3, dan 4 tersebut diperkirakan/estimasi batubara pada Blok
Towe terdiri atas 2 seam. Seam pertama mempunyai cadangan batubara 1.610.550
ton, dan seam yang kedua 370.395 ton. Jadi total dari dua seam tersebut adalah
1.980.945 ton, dengan luas daerah yang disurvei adalah 72 hektare.

The first step in estimating coal reserve is to calculate the volume. Next step is to
multiply volume with the density to get the weight. Volumetric calculation is done by
integrating the whole Profiles into program Rockwork2004 which ends up as follow:

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Final Report Coal Exploration using Geo Electric Method Resistant 2D


Identified coal is marked with light brown colour (resistivity data value 800 – 2000
ohm meter) and with dark brown colour (resistivity data value 3000 – 5500 ohm
meter). Number of coal seams in Picture of Lines 1, 2, 3 and 4 are estimated at two
seams. The coal reserve in the 1st seam is 1,610,550 ton, and in the 2nd seam is
370,395 ton. Total reserve in the two seams is 1,980,945 ton. The surveyed area is
72 hectares.

BAB IV. KESIMPULAN Conclusion

Dari hasil pengukuran lapangan, prosessing data dan pemodelan maka dapat diambil
kesimpulan sebagai berikut:

Untuk Blok Tiwei daerah yang terukur meliputi luas 72 hektare, pada blok ini
mempunyai potensi cadangan batubara yang menjanjikan sekitar 1.980.945 ton,
yang terdiri atas dua seam yang mempunyai nilai tahan jenis yang berbeda, dengan
ketebalan antara 2,5 s/d 3 meter. Kedalaman berkisar antara 2 meter s/d 15 meter.

From result of field measurement, data processing and modelling, conclusion can be
made as follow:

Tiwei Block, the 72 hectares measured area has a promising coal potential reserve
around 1,980,945 ton. There are two coal seams that carry different resistivity.
Thickness of the seam ranging from 2.5 to 3 meters. Coal reserve is found at depth
of 2 meters to 15 meters.

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Final Report Coal Exploration using Geo Electric Method Resistant 2D


Commercial Offer – PT. Borneo Omega Jaya (BOJ)

Dear Sirs,

This is regarding your request to invest in the mine concession of PT. Borneo Omega Jaya (BOJ)
in Long Ikis, East Kalimantan, Indonesia.

After our Board of Directors have met last week we have now decided on the final price for the
mine based on four alternative investment scenarios. We place the following on record:

1. The concession has valid SKIP and PU permit. (copies of permits attached)

2. The IUP-Exploration permit is completed.

3. The IUP-Exploration permit follows the same co-ordinates as per the SKIP and
PU permit.

4. BOJ is now mobilizing its Geological team to conduct a detailed out-crop


mapping. It is estimated that over the next four weeks this will be completed and
cover the full area of 2,120 hectares.

5. After the completion of this out-crop mapping the drill grid for bore holes will be
plotted. We anticipate we will start drilling around August or September 2011.

6. BOJ will divest this concession with IUP-Exploration permit completed on an


as-is-where-is basis from now on.

7. The investor will have to do all the balance permits, drilling, environmental
clearance etc at his own cost and expense

8. This commercial offer is valid till the next month (July 2011). Once drilling
starts we reserve the right to modify the value and terms.

9. If the investor wishes to alter co-ordinates to encompass adjoining potentially


coal-bearing areas the same could be done during the IUP-OP stage, provided the
mining laws allow for the same at that time.

10. All payments will be staggered between transfers to personal Director’s accounts
in Indonesia, BOJ Official accounts in Indonesia and off-shore accounts as shall be
instructed in writing before each transfer has to be made in the following proportion:

a. 10% of all payments to respective Director’s personal accounts in


Indonesia. The same shall be instructed in writing before each transfer has to
be made

b. 15% of all payments to BOJ or BOG official bank account in Indonesia

c. 75% of all payments to off-shore accounts as shall be instructed.


11. The investment scenario can be varied based on the type of equity the investor
wishes to put in. The following alternative scenarios will be considered by us:

a. 100% Divestment of BOJ shares to the investor

b. Majority Share takeover by the Investor (60% will be investor’s equity


holding)

c. Minority Share Divestment by BOJ to the investor (30% will be


investor’s equity holding)

d. Joint Operations basis (no equity to be held by investor)

12. The terms of each of the above scenarios are different and as detailed below.

8.a : 100% Divestment of BOJ shares to the investor

 Total value of takeover at IUP Exploration stage – as-is-where-is basis


IDR 55 Billion (Indonesian Rupiah fifty five Billion) (approx. 6.5 Million
USD) for 100% equity transfer

 The process of the takeover and the payment shall be as follows:

o A notarized sale and transfer of BOJ shares shall be signed by all


the share holders and Directors of BOJ at the same time of the MOU

o This sale agreement will be kept with the notaries as well as all
original documents of BOJ concession

o The sale agreement will be processed for official equity transfer


after the payments are completed.

o In case of partial payment no partial or proportionate equity transfer


will be considered

o In case payment is not done as per the stipulated dates then the
agreement will be cancelled and considered null and void. In case any
payments are received by BOJ then the same will not be returnable
and BOJ will not be liable in any manner.

o Notaris will be in Balikpapan

o The payments shall be done in the following manner (to different


accounts as per point 7 above):

 Within 14 days of signing of Sale agreement the first


payment of Rp.5.50 Billion shall be made
 Within 45 days of signing of Sale agreement the second
payment of Rp. 24.75 Billion shall be made and

 Within 90 days of signing of Sale agreement the final


payment of Rp.24.75 Billion shall be made

o After the completion of these payments in full the notarized sale


agreement shall be legalized and registered by the notaries and 100%
of the equity will be owned by the investor

 The investor is free to do all due diligence and drilling etc after the
signing of the sale agreement at his own cost and expense

 BOJ’s team will be deputed to accompany the investor’s team at all


times. All drilling and other findings shall be kept transparent with BOJ’s
team and one original of all reports shall be submitted to BOJ

 All expenses outside Balikpapan for BOJ’s team shall be to the investor’s
account.

 All current commitments by BOJ to Government bodies and officers,


royalties, public, villagers etc. shall be the investor’s responsibility during the
production stage on a per MT of production basis.

8.b : Majority Share takeover by the Investor (60% will be investor’s equity holding)

 Total value of takeover at IUP Exploration stage – as-is-where-is basis


IDR 40 Billion (Indonesian Rupiah FORTY Billion) (approx. 4.75 Million
USD) for upto 60% equity transfer

 The balance 40% shares held by the current BOJ shareholders will be
compensated for by a lumpsum dividend or royalty or fee of USD 3.30 per
MT of production.

 The investor shall be given a period of 12 months after the signing of the
takeover agreement below in which he has to start production. A minimum of
20,000 MT per month production has to be achieved after this 12 months
period. The USD 3.30 per MT shall be payable to BOJ on a monthly basis and
subject to the minimum quantity as stipulated above of 20,000 MT per month.

 The process of the takeover and the payment shall be as follows:

o A notarized sale and transfer of BOJ shares shall be signed by all


the share holders and Directors of BOJ at the same time of the MOU
for 60% equity

o This sale agreement will be kept with the notaries as well as all
original documents of BOJ concession
o The sale agreement will be processed for official equity transfer
after the payments are completed.

o In case of partial payment no partial or proportionate equity transfer


will be considered

o In case payment is not done as per the stipulated dates then the
agreement will be cancelled and considered null and void. In case any
payments are received by BOJ then the same will not be returnable
and BOJ will not be liable in any manner.

o Notaris will be in Balikpapan

o The payments shall be done in the following manner (to different


accounts as per point 7 above):

 Within 14 days of signing of Sale agreement the first


payment of Rp.4.00 Billion shall be made

 Within 45 days of signing of Sale agreement the second


payment of Rp. 18.00 Billion shall be made and

 Within 90 days of signing of Sale agreement the final


payment of Rp.18.00 Billion shall be made

o After the completion of these payments in full the notarized sale


agreement shall be legalized and registered by the notaries and 60% of
the equity will be owned by the investor

 The investor is free to do all due diligence and drilling etc after the
signing of the sale agreement at his own cost and expense

 BOJ’s team will be deputed to accompany the investor’s team at all


times. All drilling and other findings shall be kept transparent with BOJ’s
team and one original of all reports shall be submitted to BOJ

 All expenses outside Balikpapan for BOJ’s team shall be to the investor’s
account.

 All current commitments by BOJ to Government bodies and officers,


royalties, public, villagers etc. shall be the investor’s responsibility during the
production stage on a per MT of production basis.

8.c : Minority Share Divestment by BOJ to the investor (30% will be investor’s
equity holding)
 Total value of takeover at IUP Exploration stage – as-is-where-is basis
IDR 21 Billion (Indonesian Rupiah Twenty One Billion) (approx. 2.5 Million
USD) for upto 30% equity transfer

 The balance 70% shares held by the current BOJ shareholders will be
compensated for by a lumpsum dividend or royalty or fee of USD 8.50 per
MT of production.

 The investor shall be given a period of 12 months after the signing of the
takeover agreement below in which he has to start production. A minimum of
20,000 MT per month production has to be achieved after this 12 months
period. The USD 8.50 per MT shall be payable to BOJ on a monthly basis and
subject to the minimum quantity as stipulated above of 20,000 MT per month.

 The process of the takeover and the payment shall be as follows:

o A notarized sale and transfer of BOJ shares shall be signed by all


the share holders and Directors of BOJ at the same time of the MOU
for 30% equity

o This sale agreement will be kept with the notaries as well as all
original documents of BOJ concession

o The sale agreement will be processed for official equity transfer


after the payments are completed.

o In case of partial payment no partial or proportionate equity transfer


will be considered

o In case payment is not done as per the stipulated dates then the
agreement will be cancelled and considered null and void. In case any
payments are received by BOJ then the same will not be returnable
and BOJ will not be liable in any manner.

o Notaris will be in Balikpapan

o The payments shall be done in the following manner (to different


accounts as per point 7 above):

 Within 14 days of signing of Sale agreement the first


payment of Rp.2.10 Billion shall be made

 Within 45 days of signing of Sale agreement the second


payment of Rp. 9.45 Billion shall be made and

 Within 90 days of signing of Sale agreement the final


payment of Rp.9.45 Billion shall be made
o After the completion of these payments in full the notarized sale
agreement shall be legalized and registered by the notaries and 30% of
the equity will be owned by the investor

 The investor is free to do all due diligence and drilling etc after the
signing of the sale agreement at his own cost and expense

 BOJ’s team will be deputed to accompany the investor’s team at all


times. All drilling and other findings shall be kept transparent with BOJ’s
team and one original of all reports shall be submitted to BOJ

 All expenses outside Balikpapan for BOJ’s team shall be to the investor’s
account.

 All current commitments by BOJ to Government bodies and officers,


royalties, public, villagers etc. shall be the investor’s responsibility during the
production stage on a per MT of production basis.

8.d : Joint Operations basis (no equity to be held by investor)

 The investor will have a right to mine and operate the mine for the life of
the mine on an exclusive basis

 The 100% shares currently held by the current BOJ shareholders will be
compensated for by a lumpsum dividend or royalty or fee of USD 12.50 per
MT of production.

 An advance payment of Rupiah 8 Billion shall be made to BOJ. (approx.


950,000). This is not deductable.

 The investor shall be given a period of 12 months after the signing of the
takeover agreement below in which he has to start production. A minimum of
20,000 MT per month production has to be achieved after this 12 months
period. The USD 12.50 per MT shall be payable to BOJ on a monthly basis
and subject to the minimum quantity as stipulated above of 20,000 MT per
month.

 The process of the Joint Operations and the payment shall be as follows:

o A notarized Joint Operation agreement shall be signed by all the


share holders and Directors of BOJ at the same time of the MOU

o This Joint agreement deedwill be kept with the notaries as well as


all original documents of BOJ concession

o In case payment is not done as per the stipulated dates then the
agreement will be cancelled and considered null and void. In case any
payments are received by BOJ then the same will not be returnable
and BOJ will not be liable in any manner.
o Notaris will be in Balikpapan

o The payments shall be done in the following manner (to different


accounts as per point 7 above):

 Within 14 days of signing of Sale agreement the first


payment of Rp.800 million shall be made

 Within 45 days of signing of Sale agreement the second


payment of Rp. 3.60 Billion shall be made and

 Within 90 days of signing of Sale agreement the final


payment of Rp.3.60 Billion shall be made

o After the completion of these payments in full the notarized sale


agreement shall be legalized and registered by the notaries and the
investor will have the right to mine and sell the coal for the life of the
mine on an exclusive basis.

 The investor is free to do all due diligence and drilling etc after the
signing of the sale agreement at his own cost and expense

 BOJ’s team will be deputed to accompany the investor’s team at all


times. All drilling and other findings shall be kept transparent with BOJ’s
team and one original of all reports shall be submitted to BOJ

 All expenses outside Balikpapan for BOJ’s team shall be to the investor’s
account.

 All current commitments by BOJ to Government bodies and officers,


royalties, public, villagers etc. shall be the investor’s responsibility during the
production stage on a per MT of production basis.

Keshava Rao
Chairman and Managing Director
Borneo Omega Grupe of Companies

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