draft teaser MOP PP

1

MOP PP Project Economic Aspect

Private & Confidential 1

November 2011

Modernization, Optimation, Pomalaa And Power Plant Project


Disclaimer

The purpose of this document is to provide the Interested Party with general information about Modernization, Optimation Pomalaa & Power Plant Project (“MOP PP Project”), which may assist suchparty to decide whether or not to participate finance the project.This document is issued subject to the conditions outlined below. The retention of this document by the Interested Party evidences its acceptance of those conditions. If any of the condition is notacceptable to Interested Party, such party should immediately return this document and any copies of it to Antam.•This document (including the accompanying information) is supplied to the interested party subject to the potential restrictions contained in the Confidential Agreement. The interested partyacknowledges that this document is subject to the terms of the Confidentiality Agreement.•The document does not, and does not purport to, contain all the information that may be required or expected in order for the interested party to evaluate and make an informed decision about thetransaction. The interested party must at its own cost, conduct and rely solely on, its own independent review,investigation and analysis of the Transaction and of the information contained and referredto in this document.•This document has been made available to the interested party for information purposes only and is not intended to be and does not constitute a prospectus or a short form prospectus. This documentdoes not constitute an offer for the issue, sale or purchase of any securities.•This document is not to be taken to be, and does not amount to, either expressly or by implication, a recommendation, an invitation or an offer by Antam to enter into the Transaction.•Some of the information contained in this document has been obtained from third parties. None of the information has been independently verified. Antam does not make any representation orwarranty, express or implied, as to the adequacy, accuracy, reliability or completeness of:

• The information; or• Any information subsequently provided to the interested party or a specified Person by or on behalf of Antam and/or any of Antam affiliate in connection with the Transaction, including,

without limitation, the estimates, opinions, forward looking statements, and projections (and any other information derived from them), and nothing contained in this document is, or may berelied upon by the interested party or a Specified Person or any other person as, an express or implied promise or representation, whether as to the past or to the future.

•To the maximum extent permitted by law, neither Antam nor its affiliates accepts any liability for any loss or damage (including any cost, expense, outgoing, interest, loss of profits or other loss of anykind), whether direct or indirect or consequential, suffered or incurred by the Interested Party or a Specified Person or any other person howsoever caused (including as a result of negligence) inconnection with or in respect of:

• This document, including, without limitation, any statement, opinion, estimate, projection or other information contained in it or any error in or omission from this document, or for any lack oraccuracy, completeness, currency or reliability of any statement, opinion, estimate, projection or

• other information in this document or for any lack of care in the preparation of the document•The Interested Party, a Specified Person or any other person placing any reliance on any statement, opinion, estimate, projection or other information set out in the document, or on the accuracy,completeness, currency or reliability of this document.•The estimates, projection, and forward-looking statements contained in this document involve significant elements of subjective judgment and analysis which may of may not be accurate or correct.There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast, estimated or anticipated, and the differences can bematerial. Any such estimate, projection or forward-looking statement contained in the document does not constitute and must not be regarded as a representation or assurance by Antam and/or itsaffiliates that the estimated or projected results will be achieved or achievable, or that the assumptions underlying the estimate or projection are valid, or that there is a reasonable basis for theestimate, projection or forward-looking statement. The Interested Party and each Specified Person must form their own view in relation to such matters by undertaking their own independent reviewof the assumptions, calculations, principles and policies upon which the estimates, projections, and forward-looking statements are based.•Antam and/or any of its affiliate may in their sole and absolute discretion, but without being under obligation to do so, update or supplement this document from time to time (whether to correctany inaccuracies or otherwise). Any information provided to the Interested Party or a Specified Person by or on behalf of Antam and/or any of its affiliates in connection with the Transaction will besubject to these conditions and the Confidentiality Agreement. Neither Antam and/or any of its affiliates is under any obligation to, or accepts any responsibility to, inform the Interested Party or anySpecified Person of any matter arising or coming to its notice which may affect any matter referred to in this document.•This document, including any update of supplement to it, is not warranted in any way and does not and will not form part of any contract in respect of the Transaction. Any formal contract forinvestment will contain an express acknowledgement by the Interested Party that they have not relied on any representation or warranties given or made, expressly or impliedly, by or on behalf ofAntam and/or its affiliate in entering into the sale contract other than any representations and warranties explicitly set out in such investment contract.•This document has been prepared and issued by Antam.•Any liability of Antam and/or any of its affiliates to the Interested Party, a specified Person or any other person or entity arising out of or in connection with this document is, hereby expresslydisclaimed and excluded.•To the extent that any of the above paragraphs are found to be in contravention of any applicable law, such paragraph will be read down and/or severed (as the case may require) to that extent onlyand the remaining paragraphs will continue to have full force and effect.

Table of Content

3

1

2

3

Project Background

Project Location

Time Schedule

4 Economic Aspect

Private & Confidential

Project Background1



MOP PP Project

Package 1 : Jetty & facilitiesPackage 2 : Belt ConveyorPackage 3 : RefiningPackage 4 : Ladle FurnacePackage 5 : Line-4Package 6 : ESFPackage 7 : Oxygen PlantPackage 8 : CFPPPMC MOPEPCM ESF

Background New Technology Increasing Production

Safety and Environment Concern

Efficiency

Background


ElectricSmelterFurnace

Oxygen plant CFPPJetty & facilities

Belt Conveyor

Refining Plant

Ladle furnace Line-4

Package 1 Package 4Package 2 Package 3 Package 7Package 6Package 5 Package 8

Modernization, Optimation and Power Plant Project

Capacity 12k DWT

Capacity 90 tonne per hour

Length 4 km Capacity 25 tonne per heat

Name Plate Capacity 2 x 30

MW

Capacity 800 Nm3/hour

Name Plate capacity 38 MW

Capacity 25 tonne per heat

PMC and EPCM ESF

Project Location2


Location

8

FeNi Plant Pomalaa : • FeNi 1 Plant• FeNi 2 Plant• FeNi 3 Plant

FeNi Plant Capacity FeNi 1 Plant FeNi 2 Plant FeNi 3 Plant Total

Before MOP Project 3,143 4,776 10,100 18,019

After MOP Project 8,400 7,700 10,300 26,400


Time Schedule3



MOP-PP Master Schedule ( 8 Package )

PT. Antam Tbk.

No. Description

0 MOP-PP Master Schedule FIX

1 Jetty & Facilities

2 Material Handling (Belt Conveyor System)

3 Refining 3

4 Ladle Furnace

5 Ore Preparation & Calcination Line 4

6 ESF 1 Auxilliary & Utility Plant

7 Oxygen Plant

8 CFPP

Legend :

Proses Tender sampai dengan pemasukan Proposal

Evaluasi Proposal sampai dengan penunjukan pemenang

Kontrak Negosiasi

EPC Contractor

Apr-13Okt-12 Nop-12 Des-12 Jan-13 Feb-13 Mar-13Apr-12 Mei-12 Jun-12 Jul-12 Agust-12 Sep-12Des-11 Jan-12 Feb-12 Mar-12

Economic Aspect4


Investment Cost

12

Item Description Amount (MUSD)

Package 1 Jetty & Facilities 47,25

Package 2 Belt Conveyor 13,94

Package 3 Refining 34.08

Package 4 Ladle Furnace 10.99

Package 5 Line- 4 88.84

Package 6 Electric Smelter Furnace 59.25

Package 7 Oxygen Plant 10.84

Package 8 CFPP 2x 30 MW 132.00

PMC Project Management Consultancy 5.84

EPCM EPCM for ESF 7.54

Pomalaa portion FeNi 2 optimation, GCT, Diesel 2 x 17 MW 116.13

others owner cost (import duty, LC) 8

TOTAL 534.7



Financing MOP PP Project

+/- 534.7 MUSDInvestment Cost

ANTAM Bond

Corporate Loan


Production(tpa)

Load Factor

85% * 90% 95%

FeNi 1 production 8,400 8,900 9,400

FeNi 2 production 7,700 8,100 8,600

FeNi 3 production 10,200 10,800 11,400

Total Production 26,300 27,800 29,300

DescriptionLoad Factor

85% * 90% 95%

NPV (MUSD) 61.44 154.59 253.96

IRR (%) 12.57 14.3 15.95

Pay Back Period 5y 3m 4y 5m 3y 10m

Ref : * 85% is base load

Based on Q3 Brookhunt Forecast

USD/lb

Key Points

15

IPP Option For CFPP

Project Economic

Comparison

Pros and Cons

IPP have better competencies to built and operate coal fired power plant

Sharing risk and funding

Potential of project delay due to procurement of IPP Partner and negotiation phase

More expensive electricity cost Antam has limited control to

CFPP

Pros Cons

Description With IPP Without IPP

NPV (MUSD) 114.33 MUSD 61.44 MUSD

IRR (%) 14.22 % 12.57 %

Pay Back Period 4 years 5 months 5 years 3 months


16

IPP Option For CFPP (rev. Tim MOP)

Benefit to Investor

• Real off-taker . Antam is real off taker and more than 35 years operation.

• High electricity demand. Normal operation of process plant is more than 90% in year

• Attractive electricity tariff. Electricity tariff is based on business to business transaction that offers valuable investment to the investor.

• Land has secured. Power plant location has been secured by Antam.

• Opportunity for expansion. Antam has planning for replacing existing all diesel power plant to coal fired power plant. IPP has first option to develop new coal fired power plant inside Antam’s concession.

• Several Study have been completed such as Environmental Impact Assessment, Feasibility Study



Thank You

draft teaser MOP PP

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