The Indonesian coal mining concessions in which the REA group holds interests comprise the Liburdinding and Muser concessions located together near Tanah Grogot in the southern part of East Kalimantan and the Kota Bangun concession in the central part of East Kalimantan.

The Liburdinding and Muser concessions cover areas of, respectively, 1,000 hectares and 2,100 hectares and the Kota Bangun concession an area of 4,400 hectares.  Coal extraction, in each case, is or will be by open cast mining.

Pit at Kota Bangun concession

Geological surveys conducted to date suggest that the concessions contain commercial deposits of coal accessible by open cast mining and having typical gross calorific values of between 6,800 and 7,800 kilocalories per kilogramme ("kcal/kg") air dried basis ("ADB") in the case of Liburdinding, between 6,000 and 7,000 kcal/kg ADB in the case of Muser and between 6,800 and 7,800 kcal/kg ADB in the case of Kota Bangun.
 
Removal of overburden (being earth and rock overlaying the coal) at the Kota Bangun Concession started in November 2010 and the first coal seams were exposed in January 2011.  The stripping ratio (being the amount of overburden required to be removed to gain access to the coal expressed as the number of bank cubic metres of overburden in situ to be removed to extract one tonne of coal) is under the present mining plan expected to be approximately 30 to 1. The group is aiming to build up to a production level within 2011 of some 16,000 tonnes per month.  Arrangements have been agreed for the sale of current production from the Kota Bangun concession to two buyers.  

Stockpile at Kota Bangun concession

The group has plans to mine at least 15,000 tonnes per month from the Liburdinding  concession but implementation of this plan will be dependent upon successful conclusion of discussions with export buyers for the Liburdinding coal which has a relatively high sulphur content.  The group therefore intends to defer bringing the Muser concession into production until commercial levels of activity are being achieved at Kota Bangun and Liburdinding.

Concurrently with development of its own mining operations the group is establishing a limited coal trading activity.  The REA group is aiming to be achieving average monthly sales of traded coal of 100,000 tonnes within 2011.  The objectives for the coal trading activity are to augment the revenues from the mining of the Kota Bangun and Liburdinding concessions and to establish a customer base on which the group can build.  Coal for traded sales is currently being sourced by outright purchase from third party suppliers but the group intends that, in due course, it will enter into long term arrangements to procure a proportion of the coal that it trades by mining third party owned concessions against payment of a royalty.