COAL UPGRADING - BRIQUETTE ( CUB® )COAL UPGRADING - BRIQUETTE ( CUB )

PT ADVANCE TECHNOLOGY INDONESIATaufik SastrawinataChief Executive Gedung I BPPT, Lantai 21Jl. Thamrin 8, Jakarta 10340, IndonesiaTlp: 3168929, Fax:3168949Email: tsast@bit.net.id

BACKGROUND

The Coal Upgrading – Briquette (CUB ®) will provide a higher heating value by reducing high moisture by using by flash drying and physical stabilization of the dried product by p y p ybriquetting without the use of a binder

Coal Upgrading – Briquette CUB®pg g q

Good strength and handling properties. Good weathering resistanceg No chemical added

E ll t th l ti Excellent thermal properties. No chemical properties change p p g CUB can be applied to most coals

CUB Technologygy

Proven Commercial Technology and Equipment:

Drying System by Alstom USA Drying System by Alstom, USA Briquette Machine by Sahut Conrier, France Design and Engineering by PT Advance

Technology Indonesia

Coal Upgrading- Briquette (CUB®)pg g q ( )

Flash DryeryVent Fan

Dr er Di ider

Airlock

Dryer Divider

Finished Product

Mixer

Wet FeedWet Feed

Heated Air Inlet

Dispersing Feeder

Heated Air Inlet

Cage Millg

Briquette Machine

3 D CUB PLANT

Coal particles mechanismp

Coal particles after briquettedp q

Particles move or slide against each other Air between the particles is removed from the p

powder Particles break into smaller particles Particles break into smaller particles Particles are compressed together reducing

the internal pores and removing air from the pores

Particles being plastic are deformed/spread out into the space between themout into the space between them

CUB particlesp

AFTER DRIED, BEFORE PRESSED, POROUS PARTICLES AFTER PRESSED, FLAT COAL PARTICLES

CUB surface

AFTER PRESSED, surface CUB

PRODUCT OF CUB

COAL AND CUB® ANALYSIS

Raw Coal Upgrading-Briquette®

Proximate Analysis (As Received)

Raw Coal

Coal Upgrading Briquette

After briquette

After 30 days in open air

After 24 hour in water

After 48 hour in water

Moisture 46.9 10.46 10.5 12.58 15.56Ash 0.95 1.86 - - -Volatile Matter 27 2 42 86 - - -Volatile Matter 27.2 42.86 - - -Fixed Carbon 24.95 45 - - -Total 100 100 - - -

Heating Value (kcal/kg) 3393 5636 5,634 5,517 5,349HGI 78 66.77 66.77 66.77 66.77

Flash Dryer ReferenceFlash Dryer ReferenceCOMPANY CITY SIZEAmherst Coal Company Slagle, WV No. 12Bl k St C l C ti Al KY N 11Black Star Coal Corporation Alva, KY No. 11Blue Diamond Coal Company Leatherwood, KY No. 11Carbon Fuel Company Carbon, WV No. 9Clinchfield Coal Company Fairmont, WV No. 11Consolidation Coal Company Fairmont, WV No. 12Consolidation Coal Company Fairmont, WV No. 12Consolidation Coal Company Fairmont, WV No. 11Disco Company Champion, PA No. 8Eastern Gas & Fuel Association Barrett, WV No. 9Eastern Gas & Fuel Association Wharton, WV No. 9Enos Coal Mining Company Enosville, IN No. 5Erie Mining Company New York, MN No. 9Great Lakes Naval Station Great Lakes, IL No. 8Hanna Coal Company Piney Fork OH No 8Hanna Coal Company Piney Fork, OH No. 8Hanna Coal Company Piney Fork, WV No. 8Island Creek Coal Company Bradshaw, WV No. 11Island Creek Coal Company Delbarton, WV No. 11Island Creek Coal Company Holden, WV No. 11Island Creek Coal Company Scarlet Glen, WV No. 11Jamison Coal And Coke Company Fairmont, WV No. 11Jewell Ridge Coal Company Tazewell VA No 11Jewell Ridge Coal Company Tazewell, VA No. 11Kuesel Coal Company Milwaukee, WI No. 7Luzerne County Gas & Electric Corp. Hemlock, WI No. 8Mountaineer Coal Company Fairmont, WV No. 12Mountaineer Coal Company Fairmont, WV No. 12P. T. Indocement Jakarta, Indonesia No. 24Red Jacket Coal Corporation Coal Mountain, WV No. 8Red Jacket Coal Corporation Mingo City, WV No. 11Rochester & Pittsburgh Coal Company Homer City, PA No. 11Rochester & Pittsburgh Coal Company McIntyre, PA No. 9Rochester & Pittsburgh Coal Company McIntyre, PA No. 9Royalty Smokeless Coal Company Clifftop, WV 16'Schuylkill Energy Resources, Inc. Schuylkill, PA No. 24Tennessee Valley Authority Paducah, KY No. 14y y ,Valley Camp Coal Company Tridelphia, WV No. 11Valley Camp Coal Company Tridelphia, WV No. 8

SCOPE OF WORK

First Step: Coal Testcoal characteristics and the effect of the coal characteristics and the effect of the drying and briquette process, the coal will b l d d t t dbe analyzed and tested.

Engineering design the CUB system g g g y

Pilot Plant Testing Facility• Testing on Production Size

Pilot Plant Testing FacilityTesting on Production Size Equipment

• Process EvaluationsProcess Evaluations

• A&G Testing

• R&D

Facilities Home Office

Warrenville, Illinois R&D Laboratory

Naperville, Illinois - 28,000 Sq Feet, 10 Acre Site Headquarters

Wellsville, New York - Office & Mfg. Facilities Fabrication & Assembly

Concordia, Kansas - 80,000 Sq. Feet, 15 Acre Siteq

Briquette Pilot Plant Testing Facilityq g y

Briquette test facility, France

Second Stepp

The scope of work:

Engineering Detail design P t Procurement

Erection Test Run

Commissioning Commissioning

PROJECT SCHEDULEJ

Activities Month

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

A First Step

1 Sit 1 Site survey

2 Coal Sample

3 Coal and CUB analysis

B Second StepB Second Step

1 Detail Design

2 Procurement

3 Erection3 Erection

4 Test Run

5 Training and Commissioning

Cost benefits to end user

S i i hi t 30 % Saving in shipment 30 % ; Increases power plant efficiency 5 % ; Reduces operating expenses ; Easier for coal handling ; Easier for coal handling ; No fine particles

Less CO2 emission Less CO2 emission ; No coal dust during delivery and in the

t k ilstockpile.

COST ESTIMATES

Capital cost estimate based on a conceptual design the capital cost for a 1 million ton per year CUB Plant would be approximately US$ 68 Millions.

Production cost are including power, variable cost and labor costs the production costcost and labor costs, the production cost would be approximately $ 7 per ton CUB.

Investment ConsiderationsEconomics Investment cost ~ $ 68* Million for 1 Million ton CUB per year

Coal mining production cost $ 15/ton X 1 54 = $ 23 1/ton Coal mining production cost ~ $ 15/ton X 1.54 = $ 23.1/ton CUB operational cost ~ $ 7/ton Royalty ~ $ 1/ton Production cost incl coal $ 31 10 /ton Production cost, incl. coal $ 31.10 /ton CUB pricing ~$ 60/ton @ 5,600 kcal/kg ( arb), CUB gross margin ~ $ 28.90/ton = $ 28.9 Million per year Revenue Tax 28 % = $ 8 00 Million Revenue Tax 28 % $ 8.00 Million CUB net margin ~ $ 20.9 Million per year Cost of money 8 % p.a for 1.5 years = $ 8 Million per year Total investment = $ 76 Million Total investment $ 76 Million Estimated Payback Period in 4 years.

* Based on 35 % moisture reduction