2011 11 01 - Indonesian Coal Investment Forum

8/3/2019 2011 11 01 - Indonesian Coal Investment Forum

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How to Achieve Investment Success in theIndonesian Mining Sector

Presentation to the Indonesian Coal Investment Forum

James Brown

Managing Director

www.alturamining.com

ASX: AJM

1 November 2011, Jakarta


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DISCLAIMER

This presentation has been prepared by Altura Mining Limited (Altura or the Company). It should not be considered as an

invitation or offer to subscribe for or purchase any securities in the Company or as an inducement to make an invitation or offer

with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this

presentation.This presentation is provided on the basis that none of Altura nor its respective officers, shareholders, related bodies corporate,

partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the

accuracy, reliability, relevance or completeness of the material contained in the presentation and nothing contained in the

presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. The

Company hereby excludes all warranties that can be excluded by law.

e presentat on conta ns orwar oo ng n ormat on an prospect ve nanc a mater a w c s pre ct ve n nature an may e

affected by inaccurate assumptions or by known or unknown risks and uncertainties, and may differ materially from resultsultimately achieved. All references to future production, production targets and resource targets and infrastructure access re

subject to the completion of all necessary feasibility studies, permitting, construction, financing arrangements and infrastructure-

related agreements. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further

information about the Mineral Resources and Exploration Results, as well as the Competent Persons' Statements.

All persons should consider seeking appropriate professional advice in reviewing the presentation and all other information with

respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the

provision of the presentation nor any information contained in the presentation or subsequently communicated to any person inconnection with the presentation is, or should be taken as, constituting the giving of investment advice to any person.

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Listed on the Australian Securities Exchange (ASX : AJM)

Emerging producer of coal, iron ore and lithium

Three Major Projects

Coal Tabalong (South Kalimantan, Indonesia)

Iron ore Mt Webber (North Pilbara, Western Australia)

Lithium Pilgangoora (North Pilbara, Western Australia)

Altura Mining - Overview

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Capital Structure (28 October 2011)

Shares on Issue (AJM) 449,872,181

Cash A$28 million

Market Capital A$81 million


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TABALONG COAL

Coal Deposit

High calorie thermal coal (+6,400 kcal GAR)

Low ash (4%) and sulphur (


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Investment in the Indonesian Mining Sector

Locating the asset

Abundance of coal assets available in Indonesia

Target coal specifications and resource size Potential target project locations

Greenfields vs Brownfields

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Timeframes

Extended and not definitive

Exclusivity is sometimes difficult to negotiate

Vendor expectations Increased along with coal pricing

Joint venture or outright sale


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Strategy and structures

Partnerships and Joint Ventures

Finding a compatible local partner part of the strategy Compatibility of development strategies with partner

Agreements and legals

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Compliance to ownership regulations

Shareholder and capital structures

Managing and funding

Appointment of a manager for partnership

Playing to each partners strengths

Cash calls and carried interests


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Mining and exploration processes

Introduction of the new mining law

Provides a more robust framework Complexities are now generally understood

Backlog or permits remains a challenge

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Forestry Permit required for exploration (unless exempt)

Local and landowner approvals compensation may be required

Lead times of at least 3 months

Stakeholder involvement advised to reduce possible conflicts Contractor selection for exploration activities


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Mining and exploration processes

Mining Permits

Process has been very much publicised Environmental documentation (AMDAL)

Government Feasibility Study (GFS)

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Mine closure planning

Operation Production approval

Forestry Permits (Pinjam Pakai)

Export, Transport and other permits Local and Central Government mixture

Land compensation


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Security of investment

Key is in partnership and compliance

Foreign companies and local participation Capitalising on each partners strengths

Establish local presence (not FIFO)

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Community development and contribution

Transparency for all stakeholders

Compliance to environmental and statutory regulations

Meet customers expectationsCorporately

Deliver shareholder value by achieving or exceeding expectations


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Thank you

Questions?

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ASX:AJM

James Brown

Managing Director

www.alturamining.com

2011 11 01 - Indonesian Coal Investment Forum

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