NE PLC owns 95% of an Indonesian company which holds contracts to explore and mine coal on an area of 7,500 hectares in Jambi province, Central Sumatra. The coal at Jambi is good thermal coal with calorific values ranging from approximately 5,100 to 5,550 kcal/kg (air dried basis) and will be mined to produce a low sulphur, low ash product that is readily exportable.  The Company has recently completed an extensive exploration programme of 321 boreholes totalling 27,596m of drilling.

PT Britmindo, an independent Jakarta based mining consultancy, have been appointed by the Company to act as Competent Persons to carry out Resource and Reserve assessments of the property to international standards.  PT Britmindo have issued a Resources and Reserves Statement, in compliance with the JORC Code (Joint Ore Reserves Committee of Australia).  This statement details 515Mt of Resources that includes a total of 328Mt of Proven and Probable Reserves within the Companies license areas. 

Following receipt of the JORC compliant Reserve statement, which includes a positive assessment of the Reserves viability at current coal prices for the grades of coal occurring in the deposit, the Company is now pursuing detailed investigation of the methodology and sequencing of mining the delineated Reserves and the associated transportation techniques and infrastructure that will optimise financial returns from exploitation of the Reserves.  The size and geometry of the defined Reserves indicates that production levels can be sustained at a level as high as 12 million tonnes per year for at least 25 years, provided cost/coal price relationships are constant or improve.  Discussions with potential end users of the Company's coal products are ongoing to determine the production levels that are marketable and sustainable.