The local geology of the concession is comprised mainly of the late Miocene to Pliocene age Muara Enim Formation which is conformably overlain by the Kasai Formation to the south.

The Muara Enim Formation is the major coal-bearing formation within the South Sumatra region. The top and bottom of the Muara Enim Formation are defined by the upper and lower occurrence of laterally continuous coal beds. The formation itself is comprised of several stacked parasequences which vary from 0 m to 30 m in thickness, with shallow marine or bay clays at the base and shoreline and delta plain facies (sand, clay, coal) at the top. The Muara Enim Formation has been divided into 4 sub-formations (M-1 to M-4) and contains up to12 different coal seams, which can reach a maximum total thickness of around 30- 35 metres.

The concession is located in an area of relatively simple geology with undulating coal seams with low dip angles and no major structural features recognized. The coal dips at less than 10 degrees.

WRL Coal Block lies in the Muara Enim formation coals and seams dip shallowly approximately 10 degrees to the north east. The coal quality is low rank with high inherent moisture and low ash and sulphur contents.

The deposit at WRL coal block contains 11 modelled coal seams of which 5 have been split into upper and lower plies. Some seams are less continuous than others and have been modelled to pinch out were not present in a particular drill ........

Based on the observations made on the characteristic of the WRL coal deposit in the previous section, it is assumed that an "open-cut, multi seams and low degree dips with a standard truck and excavator in a haul back operational system" will be most appropriate and selected for WRL coal project. This method is well proven and has become a common mining practice in Indonesia. Initial box-cut will be developed by mining the waste material using relatively small to medium-sized (100t operating weight) hydraulic excavators, loaded onto standard rear tipping off-highway trucks then hauled to ex-pit dumps in close proximity to the pits. After sufficient mined out space created, the mined waste will be subsequently dumped in-pit using haul back methodology and the ex-pit dump area is then rehabilitated. Coal mining will be undertaken by small-sized (34-40t) excavators with flat-bladed buckets to ensure the minimum dilution and greater mining recovery. Given the shallow nature of the deposit, the underground mining method is not considered for the purpose of this study, hence the term "Opn Cut" Coal Reserve Statement. The contractor is proposed to be used for carrying out the mining operations over the life of mine. Overall batter slope angles used in the design are less than 30° and individual bench slopes up to 40°. Bench heights of 10 m and berm widths of 5 m but can also be varied to coincide with maximizing coal seam recovery and maintaining safe overall batter slope angle. ........

Coal will be sold from the stockpile area in an uncrushed form (as mined), hence no crushing facilities planned to be constructed for WRL project. The stockpiles will be the coal selling point where the ownership of the coal transfers from WRL to customer.

Weighbridges are planned to be installed at the entrance to ROM stockpiles to weigh coal trucks coming from the pit and at the exit point of the ROM area. These weighbridge readings will be reconciled and used as the basis for contractor payments calculation and for invoicing the customer.