160901_MarketingPresent_Ver39

PT Medco Energi Mining Intl
www.medcoenergi.com
Energy Company of Choice
OPERATION EXCELLENCE
DURING THE TURNDOWN
MARKET ERA
A MARKETING PRESENTATION
JUNE 2016

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A. Medco Energi at a Glance
PT Medco Energi Internasional Tbk : Our History

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Domestic Oil and Gas Business
Medcoenergi Operates nine oil and gas blocks, maintain working interests in one block operated by partner and
hold an economic participating interest in one exploration field. MedcoEnergi also hold interest in three CBM
blocks.
Exploration Development Production Economic Interest Participation Service Contract CBM
Block A
South
Central
Sumatra
Rimau
Block
Bengara
Block
Nunukan
Block
Tarakan
Block
Seimengaris
Block
Sekayu
Block
Muralim
Block
Lematang
Block
Jeruk
Exploration
Well
Bawean
Block
Senoro-
Toili Block

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International Oil and Gas Business

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Coal Mining and Power Plant Business

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Nov 2011 Infrastructure development : mess, office, port and crushing facility
Dec 2011 Heavy equipment purchasing
Jan 2012 •Heavy equipment mobilization
•Operator recruitment
Feb 2012 First OB removal and coal
getting
Apr 2012 First crushing activity
Sep 2012 First shipment
B. DTR Development Timeline
Total 48 Months (Permitting 32 months, Technical works 16 months)
•MEMI : Obtained PT. Duta
Tambang Rekayasa 1700 Ha,
Coal-Nunukan
•Medco Energi Mining
Internasional was established
in November
2008
•Drilling activity started and
Feasibility Study2009
•DTR : IUP Operation
•Environmental study (AMDAL)
•Applying for Borrow and Lend
Forestry Permit (IPP)
2010
•DTR : Borrow and Lend Forestry
Permit (IPP) in October2011

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C. Why Challenging
Geological Complexity: 16 Major Structures
Structurecomplexitywithmultithinseams
Example of coal seam
displacement in DTR area

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Multi thin coal seams
C. Why Challenging
Geological Complexity : Multi Thin Seams
±40 cm
±30 cm
±50 cm
Thickness 0.3
– 3.7 m
Layers :
up to 3
layers

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C. Why Challenging
Geological Complexity : Multiple Coal Quality each Seams
Thickness
( Centimeter ) TM IM ASH VM FC TS CVAR
Pit Ganggoro North SE GU, GL, FU, FL
GU : 58, GL : 125, FU : 45, FL
: 43
3,005,016 174,660 17.20 6.52 2.74 11.43 44.22 41.61 4.79 6,441
Pit Arie North
CUU, CU, CUL,
CL, BU, BL
CUU : 35, CU : 81, CUL : 46,
CL : 34, BU : 48, BL : 58
2,586,400 171,150 15.11 6.71 2.86 10.88 43.05 44.21 3.55 6,542
Pit Elonita North E1 , E E1 : 43 , E : 102 4,351,393 289,657 15.02 6.13 2.81 6.12 45.27 45.79 3.41 6,985
Pit Ganggoro Lama
H, GU, G, GL,
FU, F, FL
H : 52, GU : 52, G : 132, GL :
0,93, FU : 43, F : 52, FL : 44
1,199,262 121,650 9.86 7.47 3.16 10.06 44.14 42.65 3.22 6,440
Pit Handayani H , I, G H : 108 , I : 70, G : 92 8,043,807 523,448 15.37 7.53 4.41 5.19 44.39 46.01 3.39 6,948
Pit Hamim GU, G, GL GU : 58, G : 53, GL : 125 1,443,430 92,970 15.53 8.56 3.46 17.72 40.54 38.30 3.84 5,679
Pit Elon Middle E1 , E E : 101 , E1: 37 1,247,770 75,270 16.58 6.13 2.81 6.12 45.27 45.79 3.41 6,985
Pit Erna Middle
E2L, E2U, E3L,
E3U
E2L : 39, E2U : 30, E3L : 74,
E3U : 44
459,940 32,820 14.01 7.25 3.20 6.03 44.66 44.46 1.21 6,853
Pit GG Middle
FL, FU, G, GL,
GU
FL : 55, FU : 38, G : 53, GL :
48, GU : 53
1,164,120 86,740 13.42 7.47 3.16 10.06 44.14 42.65 3.22 6,440
Total 23,501,138 1,568,365 14.98 7.07 3.49 8.17 44.11 44.36 3.61 6,710
* Middle Block data still need Re-Drill
PIT
Coal Quality
OB (Bcm)SEAM Coal (ton) SR

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Chemical Properties Basis Unit Value Physical Properties Basis Unit Value
Total Moisture ARB % 10.0 Hard Grove Index 48.0
Specific Energy Fuel Ratio 1.1
Calorific Value GAD kcal/kg 6,800 Fusibility of Ash : Deformation Temparature Reducing 1250
Calorific Value GAR kcal/kg 6,500
Calorific Value NAR kcal/kg 6,200 Base % DB 26.4
Proximate Acid % DB 61.8
Inherent Moisture ADB % 6.0 Base / Acid ratio DB 0.4
Volatile Matter ADB % 43.0 Slagging index (B/A*%S dry in coal) DB 1.5
Fixed Carbon ADB % 44.0 Fouling index (B/A*%Na2O in ash) DB 0.5
Ash ADB % 10.0 Ash Analysis
Total Sulphur ADB % 3.5 SiO2 DB % 35.7
Ultimate Al2O3 DB % 25.1
Carbon DAF % 84.0 Fe2O3 DB % 12.6
Hydrogen DAF % 6.0 CaO DB % 5.9
Nitrogen DAF % 1.5 MgO DB % 5.8
Sulphur DAF % 4.2 Na2O DB % 1.2
Oxygen + Errors DAF % 4.8 K2O DB % 0.9
Trace Element TiO2 DB % 1.0
Chlorine ADB % 0.01 Mn3O4 DB % 0.1
Fluorine ADB ppm 80.0 P2O5 DB % 0.9
Phosporus in Coal adb % 0.04 SO3 DB % 10.6
Slag and Ash Deposit Characteristic
In accordance with current ASTM standards
C. Why Challenging
Geological Complexity : Typical of High Sulphur 3.5% and High CV 6500GAR

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Total Drilling : 1224 holes (42,687 m)
Total Geophysical Logging : 467 holes (10,983 m)
Total Topographic Survey: 1.697 Ha Scale 1:1000
Batas
Konse
si AHL
Tanam
an
Akasia
AHL
Tana
man
Kelap
a
sawit
NJL
C. Why Challenging
Geological Complexity : Need Dense Drilling with Space 40m

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Description Area DTR DTSA TOTAL
Coal Resources - Nunukan (Ton) All 8,900,000 2,170,000 11,070,000
(Ton) North 3,300,000
(Ton) North East 1,600,000
(Ton) Middle and South 4,000,000
Coal Reserve (SR = 15) (Ton) All 3,900,000 1,710,000 5,610,000
(Ton) Middle 600,000
(Ton) South 3,300,000
Mined Reserve as per Sep 2015 (Ton) All 1,686,000 0 1,686,000
Remaining Reserve (Ton) All 2,214,000 1,710,000 3,924,000
Note:
SR (stripping ratio) 1 : 15 means for every 1 ton of coal, we need to remove 15 meter cubic of soil (overburden)
C. Why Challenging
Small Resource and Reserve

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Camp Site
Jetty PT.DTR
Jakarta
Balikpapan
Tarakan
Nunukan
C. Why Challenging
Remote Area and Near the Borderline
Routes :
1. Jakarta – Tarakan : 2.5 Hours
2. Tarakan – Nunukan : 30 Minutes
3. Nunukan – Jetty PT. DTR by Speedboat :
1 hours
4. Jetty PT. DTR – Camp Site by Car : 30
minutes
Nunukan

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1. Top Soil Removal
2. Overburden Removal
3. Coal Getting
4. Overburden Dumping
5. Re Contouring
6. Top Soil Spreading
Mining Advancement Reclamation
Advancement
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D. Operation Excellence
Pushback Mining Method : Reduce Disturbance Area and Cost

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Comprehensive Mine Plan : Opening Multiple Pit at the Single Mine
6 topsoil spreading
3 coal getting
1 topsoil removal
2 OB removal
4 OB dumping
5 re-contouring
PIT A
PIT B

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We start the development when the coal price
started to fall, we don’t want to get stranded with
contractor at worst market condition
Cost of outsource was at least 10% higher than in-
house operation, currently our stripping ratio 1 : 15
Flexibility in operation mode adjusting to any
market condition
Seeing the future opportunity of being a service
company and develop our strength to be a mining
company as a strategic local partner
In-House Mining : 65 Unit (27HE+38DT)

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Build up Team : Setup Organization Operation Base Company
DTR Organization : 335 person
Operator
63%
Engineer
8%
Mechanic
17%
Support
12%

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ISO9001:2008 Quality Management Systems,
ISO14001:2004 Environment Management Systems,
OHSAS 18001:2007 Occupational Health and Safety
Medco Mining Management Systems
HRIS and
QHSE
Management
System
SOP
SAP and
GIS
Build up team : Develop Culture for Learning Development Base Company

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Quality Management Pit to Port : Based on ISO 9001:2008
Borehole sampling Channel sampling BLC sampling

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Port Load Out:
- Width River : 100 m
- Depth River (Mid) : 5.5 m
Anchorage Point:
- Max. Load Rate : 8,000 tpd
- Depth Anchorage : 16.0 m
Maximize the Logistic and Transport Advantage

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Barge Loading
Plan
Maximize the Logistic and Transport Advantage : 6 Days to Complete a Supramax
Laycan Period : 06 - 15 Nov 2015
ETA Vessel : 09 November 2015
Vessel Name : MV Cheshire
ETA MV 9 Nov (AM) LAYTIME
Plan Actual
1 Aa 300 7,950
2 Bb 300 7,950
3 Cc 300 7,950
4 Dd 300 7,950
5 Aa 300 7,800
6 Bb 300 7,800
7 Cc 300 7,600
TOTAL 55,000
Laytime 6.88 days
Remarks :
Loading 24 Hours
Voyage (Full) 24 Hours
Discharge 18-24 Hours
Voyage (Empty) 18 Hours
Wait Loading
BARGING SCHEDULE - PT. Duta Tambang Rekayasa
No BARGE FEET
Tonnage
NOVEMBER 2015
1 2 3 4 5 6 7
5 6 7 8 9 10 17 111 12 13 14 15 16
Note:
Barge Loading at Jetty really affected by High Tide and Low Tide of River Sebakis which is twice a day that’s why it
takes almost 24 hours for 1 barge to completed and cast off to vessel

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Barge Loading
PlanDetails Port :
 ROM Stockpile Cap : 60 kt
 Crushing Stockpile Cap : 60 kt
 Crushing Plan Cap : 300 tph
 Barge Loading Conveyor: 1,000 tph
Maximize the Logistic and Transport Advantage : 90% vessel in Dispatch Position
Average (Day)
Load Time Vessel Hour Vessel Hour
2012 7.2 1 1.2 2 -25.4
2013 5.84 8 199 2 -25
2014 5.39 7 174.83 2 -109
2015 7.96 6 100 1 -369
Target at Load Rate 8,000 mt per day for Supramax 55 kt is 6.9 days
DemmurageDispatch
Year

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Copper smelter
80% of our end user are
cement and copper
smelter in India
Our high sulfur coal
compete with petcoke and
high sulfur coal from US
E. Marketing Effort
Coal End User: cement and smelter is our niche market

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E. Marketing Effort
Selling at Premium Price
1. Deliverability
2. Quality assurance : giving forecast quality before shipment, variance 2-5% from forecast
3. In average we have been selling 10% above HPB (Government Price Index for MEDCO BARA)
4. We are delivering our company brand to end user

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Zero Accident Award
1,291,017 man working hours
period Oct 1st 2012 – Oct 31st 2013
Nunukan CSR Award in Oct 2015: Penghargaan
Terbaik dalam Pemberdayaan Ekonomi
Proper BLUE
For Environmental year 2013 - 2015
F. Awards and Recognitions
Minister, Governor and Head of Regency

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For further inquiry please contact :
FH. Kristiono
VP Corporate Strategic and Commerce
f.hary.kristiono@medcoenergi.com
Mobile +62 812 821 9517
PT Medco Energi Mining Internasional
Tel +62-21 2995 3279
Fax +62-21 821 1381
The Energy Building 51st floor SCBD Lot 11A
Jl. Jend Sudirman Kav. 52-53
Jakarta 12190, Indonesia
www.medcoenergi.com
MedcoMining
Medco Energi Mining Internasional
PT. Medco Energi Mining Internasional
End of Presentation
Many Thanks for Your Attention

160901_MarketingPresent_Ver39

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