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Inpit Conveying & Crushing (IPCC)

Presented by : Sean Pellow, Operations Director for PT ITMG 2 September, 2014

Prepared by : Mine Engineering East Block

Agenda

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Introduction to ITMG and Banpu companies

Introduction to IPCC

IPCC Current Situation

Power Consumption

Mining information

Benefits

IPCC Training and Development

Banpu

Summary

Location: Indonesia

Operating Mine

Bontanc Terminal

Barge Loader

ITM Mine Operation Location

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ITM Structure and History

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ITMG

65.00%

50.00%

PT Indo Tambangraya Megah Tbk.

Banpu Minerals

(Singapore) Pte Ltd

Banpu Minerals

Co.Ltd

BMS

99.99%

BMC

Banpu PCL Banpu

Public 35.00%

BCI 50.00%

100.00% Banpu Coal Investment

Co.Ltd

INDONESIAN STOCK EXCHANGE

IPO 18th Dec 2007

Indominco Trubaindo Jorong

PT Indominco Mandiri

(CCOW Gen.I)

PT Trubaindo Coal

Mining

(CCOW Gen II)

PT Kitadin-Embalut

(KP)

PT Jorong Barutama

Greston

(CCOW Gen II)

99.99% 99.99% 99.99% 99.99%

Reserves

310* Mt

Resources

1,763* Mt

Kitadin

PT Kitadin-Td.Mayang

(KP)

East Kalimantan East Kalimantan South Kalimantan East Kalimantan

6,500-7,300 kcal/kg 6,000-6,300 kcal/kg 5,800 kcal/kg 6,700 kcal/kg 5,300 kcal/kg

Output 1Q14: 3.6 Mt Output 1Q14: .7 Mt Output 1Q14 : 0.9 Mt Output 1Q14 : 0.3 Mt

Bharinto

PT Bharinto Ekatama

(CCOW Gen III)

99.00%

East / Central Kalimantan

6,400-6,800 kcal/kg

Output 1Q14 : 0.5 Mt

East Kalimantan

106 Mt

750 Mt

Resources

Reserves

64 Mt

410 Mt Resources

Reserves

8 Mt

148 Mt Resources

Reserves 126 Mt

306 Mt Resources

Reserves

3 Mt

141 Mt

Resources

Reserves

3 Mt

7 Mt Resources

Reserves

Note: Updated Coal Resources and Reserves as of 31 Mar 2014 based on estimates prepared by Competent Persons (consider suitably experienced under the JORC

Code) in 31 Dec 2013 and deducted from coal sales volume in 1Q14.

ITMI

99.99%

Jakarta Office

TRUST

PT Tambang Raya Usaha

Tama

Mining Services

99.99%

Jakarta Office

PT ITM Indonesia

Coal Trading

ITM Mine Operation Location & Output

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East Kalimantan

Bunyut Port

Balikpapan

Palangkaraya

Banjarmasin

Central Kalimantan

South Kalimantan

KITADIN-

EMBALUT 1.0 Mt

INDOMINCO

15.2 Mt

TRUBAINDO

7.3 Mt

BHARINTO 3.0 Mt

JORONG

1.2 Mt

Samarinda

Jorong Port

Bontang Coal Terminal

2014 Target: 29.5 mt

2014 OUTPUT TARGET

KITADIN- TD.MAYANG

1.8 Mt

INDICATIVE OUTPUT TARGETS*

* Not including inorganic growth. Note: These output targets are indicative only and are subject to change

Units: Mt

Trubaindo

Kitadin Jorong Bharinto

Indominco

33.0

27.5 29.4 29.5

32.0

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What is IPCC?

IPCC is short from “In-Pit Crushing and Conveying System”

IPCC is a mining process that combines the work of semi-mobile crusher, conveyor and

spreader to remove overburden from the open-pit mine.

IPCC works together with a Truck and Shovel method which is ITM’s main mining method.

An added IPCC system will result in a shorter hauling distance compared to the conventional

T&S system as the material in the trucks will be dumped to a semi-mobile crusher which located in the pit.

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Banpu Experience with IPCC

Banpu has had experience with the IPCC system since 1992 at Mae Moh

mine and Lampang Mine in Thailand. Banpu has started implementing the

IPCC system in Indonesia at the beginning of this year - with the IPCC

Project being used at the East Block of the Indominco Mine.

IPCC Project Equipment and Time Schedule

Sep’13

May’13

Import

Erection May-Dec’13

Transfer

The full operation commenced in March 2014.

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Crushes the OB to be smaller than 30 cm block size. Matching the Conveyor 1400 mm belt size, running at 5.85 m/s and 4500 tph

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Semi-Mobile Crusher

MMD sizers model 1300, capable of crushing rock with compressive strength of 120Mpa. At RD = 1.8 bcm/t gives 2500 Bcm/hr

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MMD Mobile Crusher

Conveyor

The OB from the Crusher will be transported to dumping area by Conveyor 2.6 km length replacing the 100t OB trucks.

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Spreader

The OB is transferred from Conveyor to the FAM Spreader and stacked at the dumping area. MA = 83% and Utilization = 80% @ 2500 bcm/hr

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IPCC Operation Stage

The Capacity of this system is 14 MBcm/Year

Relocated IPCC Hopper Plan

Note: • Length Conveyor A1-A3

= 2,450 m • Additional Conveyor for

Relocated hopper = 1,300 m

• Elevn Dump 165m • Elevn Crushers 52m • Plan move Elevn 40m

A1

A2

A3

A4 New

Existing Crusher

Plan to Relocated Crusher Crusher Average Distance plan 0,7 km

Disposal Truck and Shovel

Average Distance plan 1,2 km

A5

A6

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Indominco Power Plant 2 x 7 MW Generators

Indominco Facility Peak Load Demand Distribution - As of Aug 2014

Port

Facility

Area

East Block

Substation IPCC

Facility

CPP1

Facility

CPP 3

Facility

CPP2

Facility

CPP4+CPP5

Facility MCR at 6.5 MW, Highest at 7 MW

MCR at 0.3 MW

MCR at 0.25 MW

MCR at 0.85 MW

Mine Crushers @ 6.7 MW

MCR at 0.65 MW

Total Power Demand on Peaking time 15.25 - 15.75 MW

Indominco Facility Power Usage Monthly Basis 2014*

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14

Utility Cost USD/K

WH $ 0.17 $ 0.23 $ 0.19 $ 0.23 $ 0.18 $ 0.22 $ 0.23

IPCC Power Consumption

KwH

107,177

237,593

1,026,830

1,046,516

903,326

875,723

1,053,707

Port Facility Power

Consumption KwH

2,187,811

2,049,728

2,493,655

2,102,083

2,393,536

2,158,528

2,559,225

CPP1 Facility Power

Consumption KwH

163,130

148,214

198,120

156,680

201,927

241,472

236,349

CPP2 Facility Power

Consumption KwH

82,328

81,066

89,624

82,824

80,250

67,963

61,277

CPP3 Facility Power

Consumption KwH

293,214

248,994

248,555

221,032

273,940

243,918

283,884

CPP4+ CPP5 Facility Power Consumption

KwH -

-

42,060

26,603

32,600

22,356

33,039

* Exclude Loss

IPCC Power Consumption Summary

• Starting Condition

IPCC Power Consumption Summary

• Operating Condition

IPCC Power Consumption Summary

• Equipment Power Consumption at FSZL

- Spreader = 220 kW - Motor A1 = 540 kW - Motor A2 = 740 kW - Motor A3 = 780 kW - Motor A4 = 240 kW - Crusher A = 270 kW - Crusher B = 290 kW

Total Load Full Speed Zero Load = 3080 kW

• Power Consumption on MCR (Maximum Continuous Rate) 6500 KW

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14

Utility Cost USD/K

WH $ 0.17

$ 0.23

$ 0.19

$ 0.23

$ 0.18

$ 0.22

$ 0.23

IPCC Power Consumption

KwH

107,177

237,593

1,026,830

1,046,516

903,326

875,723

1,053,707

IPCC OB Delivery

BCM 0 0 362,745 362,790 328,590 280,305 538,965

IPCC COST USD,KWH

/BCM $

0.54 $

0.66 $

0.49 $

0.69 $

0.23

• IPCC Cost From Electricity Usage

Up Coming Activities and Plan

Current •Power Factor Improvement Project by installing capacitor bank at East Block Substation are under process to issue PO.

Future Operating plan •Due to high fluctuate of IPCC load characteristics, future dispatch ratio may be lower in order to keep availability and reliability at high level of other facilities. •Load stability at IPCC operation still an issue, Power Utilities will provide the support to IPCC team to lower load fluctuation of the IPCC’s.

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The project combines the truck and shovel system with the IPCC system to

expedite overburden removal and to reduce operation costs when mining

at deeper pit levels.

Pit Limits Comparison

IPCC Budget and Timeline

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IPCC Benefits

1 Reduce operating costs

2 Increase mineable reserves

3 More environmental friendly

(less dust, noise and emission)

4 Reduce exposure to diesel fuel

5 More safe – less truck traffic

6 Better utilization of our existing

power plant

Affordable

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Increase the understanding of IPCC system and tackle all issues from Change Readiness Assessment

Ongoing & regular meeting with Project Manager, Project Team, Change Agents @ IMM and CM Team (BKK & JKT)

Jan Feb Mar Apr May Jun

Ke

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Project Change Assessment

Change Impact Analysis

Stakeholder Analysis

Change Agent Plan

Change Agent Appointment

CM plan and deliverable

Confirmation with PM & TPD’s Management

PAMA -Visit Trip to Mae Moh

Field Trip to JKT & IMM

Change Readiness Assessment

Project Awareness Message

What is IPCC? - Poster

IPCC Article on Banpu Insight

To-Be Process - Poster

IMM- Visit Trip to Mae Moh

IMM- Meeting with

Senior Management at Corporate Office

IPCC Competency Proposal

CM Plan & Communication

Review and Revision

How well do you know

about IPCC? - Quiz

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IPCC S14 Project: Summary of Change Management Activity

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4

3

2

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Learning & Development sessions throughout the project

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Learning & Development sessions throughout the project

Load Run Test & Ready for Actual Operation

Increase the understanding of IPCC system and tackle all issues from Change Readiness Assessment

Ongoing & regular meeting with Project Manager, Project Team, Change Agents @ IMM and CM Team

Jul Aug Sep Oct Nov Dec

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SOP and WI on

environmental aspects

2nd Field Trip to IMM2nd Change Readiness

Result

2nd IPCC Article on Banpu Insight

Quiz Winner-How well do you know about IPCC?

IPCC S14 Timeline

How well do you know

about IPCC S14? - Quiz

Quiz Winner

Appreciation Message from CEO

Post Project Review

8-Focus Group

SOP, WP, WI Discussion

Change Management Survey

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IPCC S14 Project: Summary of Change Management Activity

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Training and Transferring Knowledge

Manpower 41 Operators + Maintenance + Supervisors

Training Roadmap

On the job training (OJT)

Evaluation (Pre-Test and Post-Test)

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On the Job Training

mes

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IPCC INAUGURATION

IPCC INAUGURATION

Thank you