PT Borneo Lumbung Energi & Metal Tbk (BORN)

Company Profile
March 2011

Disclaimer
This presentation is prepared by PT Borneo Lumbung Energi & Metal Tbk (the Company) solely for the purpose of analyst and investor presentations and unless otherwise expressly authorized by the Company, shall not be used by any third party. The recipient of this presentation shall only use the information contained herein solely in the context of obtaining information about the Company and/or updating such information and not for any other purposes, commercial or otherwise. This presentation does not constitute or form part of any offer for sale or invitation, or solicitation of an offer, to subscribe for or purchase any securities and neither this presentation nor anything contained herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. The information set out herein is not and does not purport to be an appraisal or valuation of any of the securities, assets or businesses mentioned herein. You acknowledge that any assessment of the Company that may be made by you will be independent of this document and that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. This presentation contains forward-looking statements that relate to future events which are, by their nature, subject to significant risks and uncertainties. All statements, other than statements of historical facts contained in this presentation, on the Companys future financial position, strategy, plans, goals, and targets, future developments are forward-looking statements. The future events referred to in these forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results to be materially different from those expressed or implied by the forward-looking statements. These forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we operate and are not a guarantee of future performance. Any reference to past performance should not be taken as an indication of future performance. The Company makes no representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario, nor any liability therefore (including direct, indirect or consequential loss or damage). You agree to keep the contents of this presentation strictly confidential. This presentation material is highly confidential, is being presented solely for your information and may not be copied, reproduced or redistributed to any other person in any manner. In particular, this presentation may not be taken or transmitted into the United States, Canada, Indonesia or Japan or distributed, directly or indirectly, in the United States, Canada, Indonesia or Japan. The Company does not intend to register any of its securities for offer or sale in the United States, or to conduct a public offering of securities in the United States. Certain data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly, the Company makes no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors. The information contained in this document is as of February 28, 2011. Neither the delivery of this document nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the foregoing limitations.

Introduction to BORN
The only premium hard coking coal producer in Indonesia

BORN is a holding company, with all of its operations conducted through PT Asmin Koalindo Tuhup (AKT) and PT Borneo Mining Services (BMS) AKT is the only hard coking coal producing mine in Indonesia (Tuhup Coal) AKT holds a 3rd generation Coal Contract of Work (CCoW) with favourable terms including:
SAMIN TAN

Current Corporate Structure

SURJADINATA SUMANTRI

PUBLIC

18.75% effective 56.25% effective

25%

advantageous corporate tax rate (25%), direct ownership of equipment, and no divestment requirement.

PT BORNEO LUMBUNG ENERGI & METAL TBK

99%

99.999%

BMS owns mining equipment that it rents to AKT BORN listed on the Indonesian Stock Exchange on 26 November 2010

PT ASMIN KOALINDO TUHUP

PT BORNEO MINING SEVICES

(CCoW)

The Concession

PT ASMIN KOALINDO TUHUP

To Port

Holds two coking coal deposits - Kohong and Telakon blocks, within 21,630 hectares of concession area JORC compliant Reserves and Resources of 69.2 mt and 378.8 mt, respectively as of June 2010 CCoW production permitted until 2039

The Concession
JORC Mineable Reserves
(in million tonnes)

Proved Kohong
PT ASMIN KOALINDO TUHUP

Probable 32.7 32.7

Total 69.2 69.2

36.5 36.5

Telakon Total JORC Resource

(in million tonnes)

Measured
To Port

Indicated 74.3 74.3

Inferred 148.6 98.1 246.7

Total 280.7 98.1 378.8

Kohong Telakon Total

57.8 57.8

Ongoing Drilling programs Kohong Dump Denial 18 holes (May 11) Exploration 100 holes (Oct 11) Development 200+ holes (Ongoing )

Telakon Exploration 90 holes (July 11)

Logistical Solutions
Increase self-sufficiency and decrease reliance on the Barito River
Haul Road or Conveyor Belt (112 km)

Mahakam River (355 km)

Existing logistics - Haul Road (36 km)

Alternative transportation route through Mahakam River a possible medium/long term solution Haul road or conveyor belt from mine to Melak port 8,000 tonne barges can be operated all year round

Existing logistics - Barito River (290 km)

Existing logistics - Barito River (272 km)

ISP under construction at Damparan, to AKT design 1MT stockpile, 2,000tph unload, 4,000tph loading capacity On-river transshipment capability from 4,000 to 8,000 tonne barges

Taboneo anchorage

Ramp-Up
2009* Production capacity at end of year Production volume Sales volume
To achieve 5mtpa: Install new barge loader (2,400tph) Install new crusher (850tph) Complete AKT designed ISP Commission all new equipment Complete other infrastructure ** Complete rock sheeting of haul road (May 2010) (Feb 2011) [May 2011] [July 2011] [Aug 2011] [Oct 2011]

2010

2011

2012

2.4mtpa 3.6mtpa 0.88mt 1.95mt 0.21mt 1.65mt

5.0mtpa 5.0mtpa 3.60mt 4.60mt 3.60mt 4.60mt

* First coal Sept 2008, first commercial production Sept 2009 ** Airstrip, permanent explosives magazine, 7 x 3m lt fuel tanks, expanded workshop, permanent camp.
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Major mining equipment

BORN owns a large mining fleet consisting of over 100 units of mining equipment and about 130 haul trucks with more equipment currently on order
Mining equipment: in service and on order
Capacity Equipment 2.4 mtpa 3.6 mtpa 5.0 mtpa Expected on site

Equipment
Mercedes Benz 38t Hauling Truck Renault 35T Haul Truck

OB Excavator 350T - Liebherr OB Excavator 250T - Liebherr OB Excavator 200T - Komatsu OB Dumptruck 100T - Komatsu OB Dumptruck 100T - Terex ADT 40T - Volvo (Cat) ADT 40T - Terex Coal Hauling Truck 20T - Hino Coal Hauling Truck 38T - Mercedes & Volvo Coal Hauling Truck 35T - Renault Smaller Excavators Graders, Dozers and Loaders Total:

4 2 8 4 40 12 80 14

4 35

5 50 8

By 7/11

By 3/11
Hino 20t Hauling Truck Komatsu Excavator 200T

By 4/11

Liebherr 250T

Komatsu 100t Dump Truck

13 177

20 23 24 106

20 21 34 138

By 4/11 By 6/11 By 6/11

Source Company information

Source BORN

Also has 35 tug & barge sets (22 x 4,000t, 13 x 8,000t)

Capex
Capacity: (in US$ million)
200 150 100 50 0 2008 Infrastructure Expansion Mining Equipment 197.5 144.3 38.7 105.6 79.1 55.8 23.3 2009 97.0 87.6 9.4 2010F 25.2 2011F 172.3

2.4 mtpa

3.6 mtpa

5.0 mtpa

Note: From 2012, capital maintenance expenditure only, of USD 25m per annum

Equipment excavators, trucks, dozers, graders, haul trucks, crusher, etc. Infrastructure fuel tanks, permanent camp, port stockpile expansion, road upgrade, airstrip, new workshop, permanent explosives magazine

Source BORN

Coking Coal Classification

Volatile Matter % air dried 19 - 38 Gieseler Maximum Fluidity ddpm 500 - 30,000 Coke Strength after Reaction % 55 - 74 Mean Maximum Reflectance % 0.80 - 1.60

Coal Type Premium hard coking

Ash % air dried <8.5

Crucible Swelling Number 8-9

Standard hard coking

<9.7

19 - 38

6-9

200 - 25,000

>55

0.80 - 1.60

Semi-hard coking

8.0 - 10.5

17 - 26

4-6

200 - 5,000

50 - 60

0.80 - 1.70

Semi-soft coking

8.0 - 11.0

25 - 41

3-8

50 - 30,000

45 - 55

0.70 - 0.95

Low-volatile PCI

6.0 - 10.5

10 - 19

1-2

n/a

n/a

1.20 - 3.00

High-volatile PCI

4.0 - 10.0

26 - 42

1-5

n/a

n/a

0.70 - 0.95

Tuhup Coal (typical)

8.0

26.5

650

60

1.22

Other properties Total Moisture 9%; Sulphur <0.85%; Phosphorous <0.015%; CV 8,300; HGI 105; Fixed Carbon 64%; Alkalis < 4%; CRI 26.4; G caking index 91; Sapoznikov shrinkage x 23mm; plastic layer y 25mm; Vitrinite 97%; JDI 78%
Source AME

10

Premium Hard Coking Coal Product

Tuhup Coal exhibits properties of a premium hard coking coal and has consistently achieved a selling price similar to Australian hard coking coal
More Favorable Less Favorable

% adb

12

6.6

7.0

7.3

8.5

8.9

9.5

10.0

10.0

10.5

Ash

6 0
Consol Energy Wesfarmers Rio Tinto BMA Teck Coal of Africa Mechal Riversdale

% adb

Sulphur

2 1 0

0.4
Mechal

0.4
Rio Tinto

0.4
Teck

0.5
Wesfarmers

0.5
BMA

0.7

0.8
Riversdale

1.0

1.7

Coal of Africa

Consol Energy

% adb

Volatile Matter

50 25 0

18.5
Mechal

20.7
Rio Tinto

21.5
Wesfarmers

23.1
Riversdale

24.3

26.5

26.8

29.9

37.0

BMA

Teck

Coal of Africa

Consol Energy

Caking Properties (Crucible Swelling Number or CSN)

12 6 0

9.0

9.0

9.0

9.0

8.0

8.0

7.5

7.0

6.5

Coal of Africa

Riversdale

Mechal

BMA

Wesfarmers

Consol Energy

Rio Tinto

Teck

15,000

ddpm

15,000

11,600

1,100

Fluidity

1,000 0
Consol Energy Coal of Africa BMA

750
Teck

450 (+)

350
Rio Tinto

251
Riversdale

100
Wesfarmers

18
Mechal

Source AME
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Reputable and Well Diversified Customer Base

BORN has built a strong customer base globally within a short time period

China India

Global marketing agreement with Glencore until July 2012, 4.5% commission Samples of Tuhup Coal sent to 30 potential customers globally in China, Japan, Korea, Taiwan, India, Turkey, Finland, France, the Netherlands, Italy and Indonesia Entered into a one-year contract from Oct 2010 to Sep 2011 with Zhonglian, China for 1MT Entered into a one-year contract from Oct 2010 to Sep 2011 with General Nice, China for 1MT Discussing 1 year contract from Apr 2011 to Mar 2012 with Nisshin Steel, Japan for 0.4MT Discussing 3 year contract (Apr 2011-14) with China Steel, Taiwan for 0.12MTPA PT Shenrong Carbon 0.12MT for one year Enquiries from domestic users, offtake from mid 2011, up to 0.6MTpa (Krakatau Steel, Indoferro, Linfen, Wanxinda)

Zhonglian Taiwan

Japan

South Korea

Indonesia

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Close Proximity to Largest and Fastest Growing Markets

BORNs closer proximity to biggest markets provides competitive advantages over its main competitors

South Korea China

Japan

Taiwan India

Indonesia

Pricing of term delivery contracts to follow market (quarterly, monthly, spot); Prices similar to Australian premium HCC spot markets; Work toward 75%-80% of planned production into fixed term delivery contracts with reputable customers; Contract with steel mills and coke manufacturers in preference to traders; Diversify across regions and markets to limit exposure to any one economy

Australian coking coal companies

Source AME, Trade Data

Closer proximity means lower overall freight cost, smaller vessels can be used (preferred by many customers); geared and grabbed vessels readily available; more ports can be destinations (shallower draft & geared); competitive cargo pricing.

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Cost of production
Total coal cash cost of production breakdown
BORNs total cash cost of production, delivered to Taboneo, is US$69.78/t for 2010
(1)

(1) Can increase by US$2.70-5.20 if rehandling and storing at the ISP

BORNs total cash cost after royalty and commission, is US$105.82/t for 2010
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Thank you

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