Pendopo Energi Batubara is our coal mining concession. Although there are hundreds of coal mining concessions in South Sumatra, Pendopo EnergiBatubara is one of the few which holds 3rd generation Coal Contract of Work with the Government of Indonesia. Our coal mining concession is located in Pendopo, Muaraenim, 140 km southwest of Palembang, the state capital of South Sumatra.

Our coal mining concession covers an area of 17,840 hectares accessible through provincial road and Musi / Lematang rivers. The coal concession has 2.2 billion tons of coal resources and 700 million tons of coal reserves at stripping ratio of 1 metric ton to 1.6 bank cubic meters as per JORC standard.

The resources and reserves are in the form of lignite with very low total sulfur, nitrogen and ash contents. DH Energy has entered into Cooperation Agreement in May 2007 with Pendopo Energi Batubara to develop lignite utilization projects onsite. Pendopo Energi Batubara guarantees long-term feedstock supply to DH Energy’s coal-to-clean-energy projects.

The Pendopo coal characteristics are as follows :

• CV contents 2,400 kcal/kg (GAR)
• High total moisture > 50%
• Low ash /sulphur  and nitrogen contents