PT Pendopo Energi Batubara (PEB), established in 1995, PEB has obtained a third-generation Coal Mining Business Work Agreement (PKP2B) with the Indonesian government. Located in Muara Enim and Pali, South Sumatra, 140 km southwest of Palembang, PEB’s mines can be accessed via provincial roads, the Musi/ Lematang River, and a ±116 km dedicated coal road connecting Lahat to the coal port on the Musi River.

PEB holds a concession covering 17,840 hectares with a 30- year operational permit, valid from May 5, 2009, to May 4, 2039, with an option for a 2x10 year extension. Based on a feasibility study conducted by an independent mining consultant using the JORC method, PEB has potential coal resources of 2.3 billion tons and coal reserves of 1.3 billion tons. PEB obtained feasibility study results and production permits with a capacity of 7.6 million tons per year since 2006, as per the letter from the Director of Mineral and Coal Mining Development No. 360/48/DPP/2006.

PEB obtained operation/production permits according to the Minister of Energy and Mineral Resources Decree No. 325.K/30/DJB/2009 dated July 1, 2009, and its amendment No. 686.K/30/DJB/2011 dated March 30, 2011. Pendopo’s coal resources are categorized as young coal, with moisture content (IM) of 16.4-27%, total moisture (TM) between 55- 60%, ash content of 4-8%, low sulfur content (<0.2%), and calorific value below 3,000 kcal/kg (GAR).

PEB collaborates with strategic partners to develop value-added low-calorific coal industries, including Mulut Tambang power plants, coal upgrading, and coal gasification/liquefaction. PEB also directly sells coal to Mulut Tambang power plants, both operational and planned, as well as to other domestic and international buyers.

Since the fourth quarter of 2022, PEB has conducted its inaugural commercial sales to Coal Traders and continued with regular shipments of at least 2 (two) barges per month for domestic purposes. These sales are ongoing and increasing. By the end of 2023, PEB successfully achieved commercial sales of 242,000 tons.

PEB has signed MoUs with coal upgrading technology providers from China, India, and Germany and sent coal samples to the respective plants. Regarding coal gasification, PEB is supported by its parent company to discuss FS with potential strategic partners expected to soon build their plants in Pendopo.