Productions

We have a strong history of increasing production and have construction underway for further significant increases:

We have contracted out most parts of our production in both our mines.  PAMA is our mining contractor for Jembayan and BUMA is our mining contractor on Sebuku.  Our barging operations are also largely contracted out although we are in the process of building up our own fleet.

We maintain a strong and full management team at the mine who are charged with responsibility for planning and daily interface with the contractors.  This formula has enabled Sebuku mine to increase production from 2mtpa in 2002 to our current rate of over 4mtpa with expectations that we will deliver a run rate of 6mtpa by the end of 2009.  Jembayan's production has increased to 4 Mt in 2007 since it began production in 2004. We have started work to upgrade capacity at both mines with a target of 10mtpa from each of them.

Our mining method is surface, open pit using truck and excavator/shovel.  About one-half of our coal at Sebuku is washed before sale.  The total distance from pit to port is only 16km along roads that we own ourselves (we have built roads for public use outside of our concession) and this helps contribute to our low mining costs.

Reserves Statement

Our latest reserve and resource statement can be seen in our annual report.