Holding Coy

Arutmin is one of the major coal producing and exporting companies in Indonesia. It signed the first coal mining contract with the Government of Indonesia in 1981 and is therefore the longest-standing private coal producer.

Arutmin manages 4 mines – Senakin, Satui, Mulia, and Batulicin – and an international coal export terminal. Senakin, Satui, and Batulicin hold world-class bituminous deposits while Mulia holds extensive sub-bituminous deposits.

Arutmin has strategic alliances with two internationally reputed companies, BHPBilliton and Thiess Pty Ltd, which market and produce, respectively, most of ‘s coal. Global resources company BHPBilliton leverages for its international marketing network and experience. Thiess Pty Ltd is a major Australian provider of integrated engineering and services with worldwide projects worth AUD 1.9 billion in 2001 and decades of mining experience in Indonesia.
Arutmin’s strong production and sales performance has allowed rapid growth during 17 years of operation. is now well-positioned in the global market and poised to expand domestically. Extensive reserves provide a natural competitive advantage but the key to Arutmin’s persistent healthy cash flows is sound management of financial, technical, and social issues. The workforce of expatriate, Indonesian, and community representatives is diverse yet streamlined. Its combination of global management experience and local sensitivity ensures that international best-practices of environment management and community development are maintained.

Arutmin’s strategic advantages – extensive and quality coal reserves, operational efficiency, marketing strengths, and competitive workforce capabilities – position it securely to maintain its healthy performance. Arutmin remains well able to manage global market conditions to best advantage. The company’s combined advantages form a secure base from which management can launch initiatives to capture future opportunities.

Thiess’ Board of Directors provides a broad range of experience in the engineering, services, and finance sectors and comprises the following members:

Chairman
Mr Martin C Albrecht AC
B Tech (Civ Eng), FAIM

Managing Director
Mr David K Saxelby
BE (Civil)

Director Finance and Administration
Mr Donald J Argent
B Comm, CPA, FCIS

Non Executive Director
Mr Robert J Flew
BEc, (Hons), FAIM, FAusIMM, FAICD

Non Executive Director
Mr Graham McOrist
CPA

Non Executive Director
Hon Roslyn J Kelly AO
BA, DipEd

Non Executive Director
Mr Wayne Osborn
BE, MBA

Non Executive Director
Mr Wallace M King AM, AO
BE, MEng Sc, FIEAust, CPEng, FAIM, FIAB, FTSE, FAICD
(CEO and Group Managing Director LHL)

The Anvil Hill Coal Mine is proposed for the upper Hunter Valley in New South Wales. There is strong support for and against the coal mine within the Hunter Valley and other areas. Supporters state that the local communities exist because of mining historically attracting workers to the area and that a new mine will lead to further employment in the local area along with state wide economic benefit. Environmental activists have utilised arguments against removing current landholders, potential loss of flora and fauna diversity and climate change to argue against the mines approval.

The coal mine will be managed by Centennial Coal with Mines operator expected to be Thiess. The mine will provide coal mostly for the production of electricity. It currently has contracts for providing coal to Bayswater / Liddell power stations in the Upper Hunter for 12 years, commencing in 2008.

The proposed mine EA (environmental assessment) was provided to the Department of Planning in June 2006. On the 7th of June the NSW Planning Minister Frank Sartor approved the proposed mine, stating that not going ahead with the mine would make no overall difference to climate change and thus would slow down the economy of New South Wales without good reason. Additionally many local landowners where happy to accept Centennial Coals purchase offer, and further environmental surveys showed species were found in greater abundance, further afield, than protestors had stated was the case.

Centennial Coal announced the sale of its Anvil Hill mine in the Upper Hunter to Xstrata Coal for $425 million on Monday 17th September 2007

Xstrata Coal Chief Executive, Peter Coates, said, “The acquisition of Anvil Hill will add significantly to Xstrata Coal’s NSW thermal portfolio and help to provide continued economic benefits and employment opportunities for the Hunter region throughout its construction and operation.

“Xstrata Coal is an industry leader with the business principles, experience and capacity to develop the Anvil Hill site in accordance with global environmental and safety standards. We also have a proven commitment to working with the communities which neighbour our operations.”

Xstrata Coal is seen as a respectable coal mine operator within the NSW and QLD communities, with former Premier of NSW Bob Carr saying in regards to the Xstrata Coad scholarships program “Xstrata Coal’s commitment to the teacher’s scholarships is an outstanding example of good corporate citizenship in action. They have provided teachers with valuable new experiences to strengthen their professional knowledge and teaching ability. This is a direct contribution to the well being of the community in which they operate. This means teachers in NSW can be equipped with new skills that will touch the lives of hundreds of their students down the years”

Xstrata is also seen in a better position to undertake the operation of Anvil Hill, which is reflected in the statements make by Centinneal Coals Managing Director Robert Cameron, who said Xstrata was better placed to “absorb” the risks involved in the development of the Anvil Hill project.

Xstrata Coal is currently the biggest coal producer in NSW and the world biggest exporter of thermal coal, it is based in Sydney, Australia and is an Xstrata plc (LSX:XTA) subsidiary.

BHP Billiton is the world’s largest mining company. Its origin is in the 2001 merger of Australia’s Broken Hill Proprietary Company (BHP) and the UK’s Billiton, which has a South African background. The result is a dual-listed company.

Corporate structure

The Australian BHP Billiton Limited and the British BHP Billiton Plc list separately with separate shareholder bodies but they operate as one business with identical boards of directors and a single management structure. The headquarters is in Melbourne, however there is a strong possibility the company may move it to Perth, the site of one of its key offices, in the future. The company has other key offices in London, Johannesburg, Santiago, Singapore, Shanghai, Houston and The Hague.

After the merger between BHP and Billiton in 2001, Brian Gilbertson of Billiton was appointed CEO. In 2003 after just six months at the helm, he abruptly stepped down citing irreconcilable differences with the boards.

Upon Gilbertson’s resignation, Chip Goodyear was announced as the new CEO and continues in that role to his announced retirement on the 30 September 2007. Marius Kloppers has been announced as the successor CEO.

The company operates a wide variety of mining and processing operations in 25 countries, employing approximately 38,000 people.

The company has nine primary operational units:

* Iron ore
* Manganese
* Petroleum
* Aluminium
* Base Metals (primary products include copper, lead, zinc and uranium)
* Metallurgical Coal
* Thermal Coal
* Stainless Steel Materials (nickel and cobalt)
* Diamonds & Speciality Products (diamonds and titanium minerals)

The group publishes its accounts in US Dollars. Its revenue (or turnover) for the year ending 30 June 2006 was $32.153 billion. Profit before tax was $14.166 billion and profit for the year was $10.534 billion. Both of these figures were up significantly on the previous year as BHP Billiton benefited from a continued global escalation of commodity prices and higher production levels.

Austindo Resources Corporation NL is an Australian publicly listed company seeking to explore and develop gold mines in Indonesia.

Construction started in late 2005 for the Cibaliung Gold Project; a high-grade epithermal gold vein system located southwest of Jakarta in Banten Provinces, western Java, Indonesia.

Austindo Resources plans to capitalize on its unique Indonesian abilities to develop mining projects in that country whilst retaining an investment interest in Australian properties.

Austindo Resources was formed in 1983 and now has a strategic relationship with the ANJ Group & associates of Indonesia, which is the single largest shareholder with a 34% interest. The next largest shareholder, with 18.1%, is Lion Selection Group (ASX code: LSG) that was established in 1997 to provide patient equity capital to emerging Australian mining and exploration companies. Merrill Lynch is the third largest shareholder with 5.9%.

The Company’s Code on the Australian Stock Exchange is “ARX”.

Directors:

Mr. Bruce Watson
Mr. George S. Tahija
Mr. John C. Carlile
Mr. Christopher P. Melloy
Mr. Bruce Watson

Mr. Bruce Watson was appointed Chairman of the Board on 23 June, 2005. Mr. Watson brings extensive corporate and commercial experience to Austindo which the Board considers to be invaluable as the Company advances major debt and equity funding arrangements associated with the development of the Cibaliung Gold Project in Indonesia.

Mr. Watson is the Managing Director of Cubic Corporate Advisory Pty Limited and was previously Head, Corporate Advisory & Equities at Westpac Institutional Bank and prior to that a founding director of Grant Samuel & Associates Pty Limited.

Austindo welcomes Mr. Watson’s experience and commercial insight derived from his diverse and comprehensive background across the Australian banking and investment community and his high level of technical capability within the core areas of legal and financial structuring.

Mr. Watson was also formerly a director of Austindo from 1998 until April 2001 and accordingly has an understanding of the Company and the history of its involvement in Indonesia.
Mr. George S. Tahija

Mr. George Tahija is the President Director of the Austindo Group of Indonesia and is also a Commissioner of Freeport Indonesia. His qualifications include a BSc. in Mechanical Engineering from Trisakti University, Jakarta, Indonesia and an MBA from the University of Virginia, USA. He has extensive involvement in the principal activities of the Austindo Group which include financial services, agribusiness and exploration and mining.

Mr. Tahija was appointed as a Director of the Company on 3 March 1998.


Mr. John C. Carlile

Mr. Carlile is a geologist with a BSc. (Hons) degree in Geology from the University of Reading and a MSc. in Mineral Exploration from the Royal School of Mines, London. Mr. Carlile is a Fellow of The Aus.I.M.M. and CPGeo. and a Fellow of Geo.Soc.Lond. He has over 20 years experience in the mining industry, primarily in gold exploration and has previously held senior positions in the Asian region with major mining companies including BHP and Newcrest Mining Limited.

Mr. Carlile was appointed as a director of the Company on 3 March, 1998 and was the Managing Director and Chief Executive Officer of the Company until 17 November 2002. From 18 November 2002 Mr. Carlile has continued on the Board as a Non-Executive Director and is also a member of the Audit Committee.


Mr. Christopher P. Melloy

Mr. Melloy is an Executive Director of the management company responsible for the operation of Lion Selection Group. He holds an Honours Degree in Mining Engineering, a Masters Degree in Engineering Science and a Graduate Diploma in Applied Finance and Investment.

Mr. Melloy has over 25 years experience in the mining industry in both operations and finance. He spent 11 years with MIM’s Mount Isa operations in planning, operating and senior management roles. Mr. Melloy was employed by J B Were & Son for 10 years as a mining analyst with specific responsibility for researching the base metals sector.

Mr. Melloy is one of the foundation members of the management team of Lion Selection Group, which raised $100 million in 1997 to provide equity capital to emerging Australian mining companies.

Management:

The Company is focused upon and committed to bringing the Cibaliung gold project to production. Mr. Hermani Soeprapto as Chief Operating Officer, based in Indonesia, has primary responsibility for all of the Company’s Indonesian activities with particular emphasis upon delivery of the Cibaliung gold project.

Mr. Soeprapto, 57, a mining engineer, has had a career spanning over 30 years with the Freeport-MacMoran group, mostly in Indonesia. During this period, Mr Soeprapto has gained extensive experience in developing and operating major open pit and underground mines. He served for 6 years as the site based Executive Vice President and General Manager for the operation of the Grasberg open pit and underground copper gold mine and mill in Papua.

Mr. Tony Nadalin – Financial Controller. Mr. Nadalin has 20 years experience in accounting and corporate finance and as a Financial Controller of listed companies. He is responsible for financial reporting and administration as well as being Assistant Company Secretary.

Mr. Andrew Cooke – Company Secretary. Mr. Cooke has 20 years experience in law, corporate finance and as a Company Secretary of listed resource companies. He is responsible for corporate administration together with stock exchange and regulatory compliance.
In Indonesia the Company is the operating manager of the Cibaliung Project in a joint venture with state mining house PT Aneka Tambang. The Indonesian arm of the Company has developed a strong management team with significant experience in exploration, permitting development and operation of projects in Indonesia.

Mr. Sucipto Marijan, an accountant, manages external affairs and Indonesian corporate relations and has more than 20 years experience with foreign investment companies including finance, corporate management, government liaison and project permitting in the Indonesian resources sector.

The exploration team in Indonesia is led by Mr. Brad Wake. Brad is an Australian educated geologist with 20 years experience exploring for gold, silver, base metals, tin and other metals in Australia and the SW Pacific region including over 8 years work experience in Indonesia. Included in his Indonesian achievements, Brad was exploration team leader in the Minahasa region of North Sulawesi, responsible for planning, management and implementation of reconnaissance work that resulted in the discovery of the Toka Tindung epithermal gold-silver vein systems for Aurora Gold Limited in 1994.

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