Jakarta, October 13, 2008 – PT Bayan Resources Tbk (Bayan) announced today that two of its subsidiaries, PT Teguh Sinar Abadi (TSA) and PT Firman Ketaun Perkasa (FKP), have each separately signed five year mining contracts with PT Thiess Contractors Indonesia (TCI) with respective values of approximately $610 million and $220 million for a combined value in excess of USD 800 million.

 

TCI will carry out mine planning, overburden removal, coal mining, plus loading and transportation of coal from the mine site in Melak, East Kalimantan to the jetty port. The combined contracts set a peak production target of 4 million tonnes of coal and approximately 40 million BCM of overburden per annum.

President Director of Bayan, Eddie Chin said: “We believe that this is another significant step in the expansion of our operations and are confident that TCI, as a world class subcontractor, will help increase Bayan Group’s performance.”

Bayan Group was the eighth largest coal producing group in Indonesia in terms of production volume in 2007 and has integrated coal mining, processing and logistics operations as well as being engaged in thermal coal mining. The Bayan Group produces coal with a wide range of calorific values.

TSA and FKP are coal mining companies that have third generation CCOW’s to mine in Melak, East Kalimantan. TSA and FKP have current concession areas of 5,838 and 12,710 hectares respectively.