Minutesofmeeting
For
......project
In
Southsumatera，indonesia
Attendance：RefertoAttachedList(seeAttachment1)
Date：October19,2015
Place：Hangzhou
1.Theagreedagendaareasfollows：
A.Coalsupplyissue
B.POAforsigningMOUregardingtheHVDCSumatera-JavatransmissionProject
C.FinancialAdvisorMandateletter
D.Howtopushforwardthepowerplant，coalmineandtransmissionprojects.
2.Generaloverview:Alltheshareholdershavethesameunderstandingthateveniftheprojectdidn’tmakeexpectedprogressinthepastseveralmonthsduetotheHVDCT/LissuesandtheinfluenceofthenewMinningLawtocoalsupplyscheme,alltheattendeesstillhaveconfidencethatalltheseissueswillbesolvedwiththebesteffortsofallparties.CoalSupplyissue
PTBAmadeacomprehensivemeaningfulpresentationregardingthenewmininglaw,itsimpacttosignedJVCCoalMineandPTBAopinionfornewcoalsupplyschemeaswellasresponsetoCDBletterof11August2009.
ThesummaryofPTBA’sproposalschemeinitspresentationisasfollows:
1PTBAcannotassignitsrightandobligationasminingpermitsholdertootherpartypursuanttothenewmininglaw.
2itisPTBAasminingpermitholderwhoshalldecidethecoalprice,hence,therevenuesaccountshallbereckonedinPTBA’sbook.(whichmayaffecttoroyalty,tax,etc)
3coalsupplyagreementshallbeestablishedbetweenJVCpowerandPTBA.
PTBAcannotfulfilltherequirementofCDBthattheKPisheldbyPTBA’ssubsidiaryduetoanuncertaintyofgettingKPbyPTBAoritssubsidiary.
5aslongasPTBAholdstheminingpermitandholdafullauthorityoftheminethenPTBAcangiveaguarantyofcoalsupplytoJVCPower.
TheattendeesdiscussedtheproposedschememadebyPTBAasfollows:
PTBAconcludes,baseonallinputfromreceivedinformation,thefollowings4possiblecoalsupplyschemesthatcomplywiththenewmininglaw:
1Pass-throughscheme(scheme1)
2PTBAasthecoalsupplier(scheme2)
3JVCCoalMinewillbecoalminingservicecompanyorotherposition(scheme3)