The KIM concession area is found on the northern edge of the South Sumatra Basin. The South Sumatra Basin was formed due to back-arc extension which began in the late Palaeocene. This extension resulted in an approximately north-trending graben structure which is filled with an Eocene to mid-Miocene age transgressive sedimentary sequence culminating in the deepwater sediments of the Gumai Shales in the mid-Miocene.

The local geology of the area is comprised of a Miocene aged ignimbrite unit (Tmr) which unconformably overlies the Oligocene aged coal-bearing sediments belonging to the Sinamar Formation (Tos).

The Sinamar Formation is of an equivalent age and sedimentary setting to the Oligocene Talang Akar Formation, seen elsewhere in the basin. The ignimbrite unit varies in thickness between 50 m and 60 m and appears to have been deposited on an erosive paleo-surface which has been incised into the coal-bearing sediments of the Sinamar Formation.

The coal-bearing sediments dip gently (less than 10 degrees) to the north-northeast. The area appears to be structurally relatively benign, with no evidence of significant displacement of the coal seams in the area.

The coal quality in the KIM concession area can be summarised as sub-bituminous coal with moderate total moisture and moderate ash.

The KIM Mine is an open-pit mine using a standard truck and excavator methods which are a common practice in Indonesia. The mining method can be described as a multi seam, moderate dip, open-cut coal mine using truck and shovel equipment in a combination of strip and haul back operations. Waste material is mined using hydraulic excavators and loaded into standard rear tipping offhighway trucks and hauled to dumps in close proximity to the pits or to in-pit dumps where possible.

The mining schedule for the KIM concession blocks includes two operating open-cut mines (KIM East and KIM West) which target total coal production of 2.4 Mtpa in 2022 ramping up to 3.0 Mtpa from 2025 onwards.

KIM East pit commenced production in 2007 while the KIM West pit started in 2010. The KIM Mine is operated as a single mining operation; even though the production from the Kim West pit has been temporarily suspended as part of normal operation control. It is planned to resume production from the KIM West pit by 2025.

The thickness of the ignimbrite has quite a big variation in KIM East Pit varying from 5 m in the SW corner of the pit but it goes up to 55 m on the western side, 40 m on the eastern side and approximately 22 m in the central north side.

There have been the previous wall and in-pit dump failures reported due to excessive tuff, undercut bedding and structure and internal dump developments in the existing mining areas in KIM pits. The current ........

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