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 2.0 Mtpa in 2021 ramping up to 3.0 Mtpa from both the pits 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 geotechnical study for the KIM area recommends a high wall slope which is depicted.

The overall high-wall batter angle approximately varies from 20 to 40 degrees as the ultimate pit depth ranges from a little more than 80 m to 150 m. This was done in accordance with the geotechnical study done on KIM projects.

The coal is to be sold unwashed so no processing factors have been applied. Other than crushing to a 50 mm top size no other beneficiation will be applied.

Mined out coal is hauled to the ROM stockpile, located at an approximate distance of 10 km from the KIM pits, using rigid body coal haulage trucks. Although facilities for crushing and screening exist at the ROM stockpile area, crushing is not required for sales to most domestic customers.

Coal from the ROM stockpile is hauled (262km) along public roads to customers. It is anticipated that most of the coal will be sold to the Lontar Papyrus pulp and paper plant in the near term. However, in the medium term, some of the coal produced from the KIM Project may go to nearby power plants under construction including one at Jambi and Teluk Sirih.