PT. Darma Henwa Tbk

Corporate Profile

integrated mining services

Introduction

� PT. Darma Henwa Tbk established in 1991, has evolved from an engineering contracting firm to become an integrated mining and energy services company with a solid foothold in the lucrative, resource-rich energy industry sector of Indonesia

� In 2007 Darma Henwa took over the coal marketing business and currently in the process of establishing businesses in the field of energy associated with coal.

Together with the expertise, human resources, working capital and strong fleet, we will increase the strength of the company

Vision & Mission

� Vision

To be the preferred regional integrated mining services Company

� Mission

01. To established a sound management knowledge and cost

effective operation

02. To provide stakeholders with maximum value and deliver sustainable financial growth

03. To provide high quality services to our stakeholders with full commitment in best practice of Health, Safety, and Environment as well as Corporate Social Responsibility

Profile

Darma Henwa is a mining contracting company and was founded

in 1991 as a domestic investment company and transformed into foreign investment company in 1996 with the arrival of Henry Walker Group Ltd (Australia) as a shareholder.

In September 2005 the Company changed its name to PT. DarmaHenwa, from the previous PT. HWE (Henry Walker Eltin).

September 2007, Darma Henwa made in initial public offering with 75.3% shares owned by Zurich Assets International Ltd, PT. Indotambang Perkasa 4%, and public shares of 20.7%

ProfileSince the beginning Darma Henwa has developed and carved out

a reputation as a leading mining contractor in Indonesia as an experience provider of heavy equipment in mining excavation, civil works, and as a maintenance provider for mining equipment.

In conducting its operations, the Company is supported by a complete mining fleet of excavators, dump trucks, bulldozers, loaders and graders from brands such as Hitachi, Komatsu, Caterpillar, Liebherr, and Terex.

Up to 2009 Darma Henwa has completed the contracts at several mining projects, including the Petangis project (South Kalimantan), Gold mining project (Wetar Island), Wanagon Lake and Tunnel(Papua), Kelian project (East Kalimantan), Copper Batu Hijauproject (Sumbawa island), and Coal mining (Busang), etc

Experience Projects

1. Kelian Projects.

Client PT. Kelian Equatorial Mining (USD26.93 million)

2. Busang & P’Labu Coal Projects.

Client PT. Tanito Harum (USD34.22 million)

3. Bengalon Coal Mining Projects.

Client PT. Kaltim Prima Coal (USD2.65 million)

4. Pulau Gebe Nickel Projects.

Client PT. Aneka Tambang (USD6.7 million)

5. Freeport Projects.

Client PT. Freeport Indonesia (USD11.2 million)

Experience Projects

6. Asam Asam Coal Mining Projects.

Client PT. Arutmin Indonesia (USD2.1 million)

7. Petangis Coal Projects.

Client PT. BHP (USD107 million)

8. Batu Hijau Projects.

Client PT. Newmont Nusa Tenggara (USD82.3 million)

9. Lerokis & Kali Kuning Gold Projects.

Client PT. Biliton (USD21 million)

Mining ProcessesThe following diagram represents the Company’s coal mining process

PORT

STOCKPILES

SHIP

LOADOUT

OVERLAND

CONVEYOR

COAL MINING

COAL SEAM

LAND CLEARING

TOPSOIL REMOVAL

COAL DRILLING &

BLASTING

OVERBURDEN

REMOVEL

COAL

PREPARATION

OVERBURDEN

DUMPINGTOPSOIL

REPLACEMENT REVEGETATION /

REHABILITATION

OVERBURDEN

DRILLING &

BLASTING

Mining Processes

Description of the Company’s mining process:

● Land clearing, and activity to clear mine surface area from plants and others so that it is ready for extraction or mining operation

● Topsoil removal, activity to remove and relocate topsoil

● Drilling and explosions, activity to disperse overburden with the aim of helping overburden cutting and its loading into transportation equipment or trucks

● Overburden cutting, activity to cut overburden and load it intotransportation equipment or trucks

● Overburden shoveling, activity to shovel exposed overburden and load it into transportation equipment or trucks

Mining Processes

● Overburden removal, activity to transport and place overburden in disposal or waste dump areas

● Coal transportation, activity to transport coal to stockpile Romsor vise versa

● Coal loading, activity to relocate coal from a belt conveyor tovessels

● Land rehabilitation, activity to reforest a mining area by growing a variety of particular plants

Overview

19.218.8Total Moisture (%)

0.840.96Sulphur (%)

5.6245.759Specific Energy (kcal/kg)

4.63.7Ash (%)

1164Quantity (Mt)

ProbableProven Description

The Company is now performing mining operations on KPC concession site at Bengalon, East Kalimantan and operation on AI concession site at Asam Asam, South Kalimantan.

� Bengalon Operating Agreement (BOA)

The Company and KPC executed the BOA on 27 May 2004 and on 9

March 2007 amended the validity term of the original agreement from 1 July 2014 to life of mine and expended the mining area by the addition of Pit A and B in addition to Pit A which has been operated. Under the agreement, the Company has the exclusive right to mine coal in the three Bengalon pits.

The following table provides the specifications of Bengalon coal:

Overview� Asam Asam Operating Agreement (AOA)The Company has made a coal mining contract with AI under

the Asam Asam Operating Agreement (“AOA”) executed by the two firms on 22 March 2007, under which AI, a concession holder for coal mining under a Contract of Works with the government ofAsam Asam, South Kalimantan, has appointed the Company as a coal mining service provider. In relation to the contract, the Company has set up the consortium with AI to provide low-rank coal to PLN in the amount of 10.23 mtpa for 20 years.

The following table provides the specifications of Asam Asam coal:

34Total Moisture (%)

0.24%Sulfur (%)

4919Specific Energy (kcal/kg)

2.5%Ash (%)

336Quantity (Mt)

Proven Description

Mining Contracting & Energy

DH Energy is a limited liability company incorporated under the laws of the Republic of Indonesia in March 2007. DH Energy focuses its activities for development projects related to sustainable long-term “coal to energy” such as electric power and creating clean coal technologies for economic welfare development in Indonesia.

Power generation project will be develop near the source of mining in the coal concession. This is the opportunity for other coal fired power plants to get a confirmed coal supply with a better price.

In the utilization of lignite to produce electricity, DH Energy plans to optimize carbon emissions through the usage of Super CriticalBoiler technology, in accordance with Government of Indonesia regulations to reduce carbon emissions.

Operating Fleet

From our active mining contracting and engineering construction works, Darma Henwa owns and operates a comprehensive range of equipment fleet for mine excavation, mine hauling and mine support

Mine Excavation Fleet

2 x EX5500 FS Hitachi Excavator

3 x O&K RH340 Excavator

2 x O&K RH200 Excavator

5 x O&K RH120 C/E Excavator

2 x Liebherr R994 Excavator

2 x Komatsu PC1600 Excavator

1 x Liebherr R984 Excavator

5 x Caterpillar 245 Excavator

Mine Hauling Fleet

5 x Komatsu HD1500-5 Dump Truck

17 x Liebherr T262 Dump Truck

10 x Terex MT4400 Dump Truck

6 x Komatsu 630E Dump Truck

5 x Terex MT3300 Dump Truck

5 x Komatsu HD785 Dump Truck

6 x Caterpillar 777 Dump Truck

100 x Caterpillar 777A Dump Truck

Operating Fleet

Mine Support Fleet

1 x Komatsu D475 Dozer

1 x Komatsu D375 Dozer

2 x Caterpillar D11R Bulldozer

4 x Caterpillar D10R Bulldozer

4 x Caterpillar D9 Bulldozer

2 x Caterpillar 16 H Grader

2 x Caterpillar 980 H Loader

1 x Caterpillar 14 Grader

1 x Caterpillar 854 RT Dozer

2 x Caterpillar 834 RT Dozer

1 x Komatsu PC400

1 x Liebherr R974

1 x 245KS Drill

2 x D55SP Drill

4 x Caterpillar 825 Compactor

2 x Caterpillar IT 62 Tool Carrier

1 x Caterpillar 988 Tyer Handler

15 x Caterpillar 992C/G Loader

5 x Caterpillar 992C/G Loader

Corporate Social Responsibility

Darma Henwa for its corporate social responsibility has allocated funds with the coordination of other companies around the miningsite.

Following are some of CSR activities :

● Educational activities

● Health/Environment activities

● Activities of religious/social organizations

● Activity infrastructure

● Supporting activities

Health, Safety & EnvironmentHealth, safety and environment sustainably is regarded as one ofthe major priorities by the Company

Clearly these three aspects are to include the below mentioned :

▪ Health

Darma Henwa has committed itself to monitoring and improving health on regular basis for all employees who are involved directly or indirectly in any work activity▪ SafetyDarma Henwa has committed itself to place safety as the

ultimate concern for all employees involved in all Company operations.▪ EnvironmentDarma Henwa has committed itself to minimize the operational

impact where they operate, maintaining environmental sustainablyin all areas of Company operation.

Management Structure

Board of CommissionersRini M. Soemarno President Commissioner

Indonesian Citizen and borned 1958 in the United States of America. Ms. Rini Soemarno earned a Bachelor Degree in Economics from Wellesly College, Massachusetts, USA in 1981. She served as Minister of Trade and Industry, Republic of Indonesia during 2001 – 2004 as a Deputy BPPN (National Banking Restructuring Board) in 1998. Finance Director of Astra International Tbk during 1990 to 1998, and Vice President Citibank N.A Jakarta in 1989.

Kanaka Puradiredja Independent Commissioner

Indonesian nationality and borned 1944. Having Economy degree in Acounting in 1971 from Padjadjaran University, Bandung. Managing Partner KPMG Indonesia in 1978 to 1999 last position was the Chairman of KPMG Indonesia. During 1994 to 1998 member of KPMG Asia Pacific board. From 2000 up to now is senior partner KAP Kanaka Puradiredja, Robert Yogi, Suhartono

Board of DirectorsAdwin H. Suryohadiprojo President Director

Adwin H. Suryohadiprojo joined Darma Henwa in 2009. He earned a mechanicalengineering degree from Bandung Institute of Technology, and a Master of BusinessAdministration from New York University in New York City. Afterward, he continuedwith a PhD program in Mechanical Engineering School, and got his Master of Scienceand Doctoral Degree from Texas A&M University. He started his professional career at PT PAL Indonesia right after finishing his education. He rose up to become the President Director of PT PAL before joining Bakrie group of companies. During his tenure he also attended Management Program forSenior Executive at Massachusetts Institute of Technology.

Gani Bustan Finance Director

Mr Bustan joined Darma Henwa in early 2007. His previous positions include Head of Business Development at PT Wiharta Karya Agungfrom June 2003 to June 2005 and President Director at PT MutiaraSukses Sejati from October 2002 to May 2003. He has a Master of Business Administration degree and a Bachelor of Business Administration degree majoring in International Business with minor in Economics from the Wichita State University, Kansas, USA.

Senior Management

� Jakarta Head Office

Masruri YahyaChief Operation Officer

Vaza A AdamasAssistant to CEO

Ermin GarridoContract Administrator

Mursalman AhadiHead of Internal Audit

Bruce TrainorHead of Plant and Maintenance Div

ApathsakayanHead of Supply Management Div

Kurnia WahyudiHead of HSE and QM Div

NursyirwanHead of Business and Development Div

Dewa Putu NugrahaHead of MIS Div

Ellie TurjandiHead of Finance Div

Harry satria PHead of Technical Service Dept

Prita WiditaHead of HR Operation Dept

KuswatimHead of HRSD Dept

Acil Mulyana Head of System Support Dept

Arif Q Al BoneHead of Corporate Finance Dept

Yoke DewiHead of Tax Dept

Deden HendrayanaHead of Cost Control Dept

Wiria WidodoCorporate Secretary

� Site Office

Adil Perangin AnginHead of Bengalon Coal Project

SuhermanHead of Project Development

Agus EfendiHead of Asam Asam Coal Project