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Disbursement will go in stages based on the project needs. We expect the first drawdown
should be in the end of May.
QUARRY SITE
1. Is it currently an operating quarry?
Yes. The owner has taken care of the permit/license for the quarry including hauling access
but has not start mining yet
2. Is the rock suitable for road construction?
Yes. See slides 7 on the product variety.
3. Is there a survey report?
Yes. Currently HAKAASTON only have stone specification.
4. Life of quarry (how many cubic meters?)
The studies by consultant has shown only the stone specification. The area size of 200 ha and
50 ha licensed-mining area are validated according to owner certificates.
5. Existing Quarry License? If so can it be transferred? If not how long to be issued?
It can be transferred or replace to new owner and permit period can also be extended.
6. Are all Environmental and other government approval(s) in place.
Not all. HAKAASTON will taking care of all document that needed. State Owned Enterprise
have the advantage in getting approval or permit and will not get any issue from society
because its government delegation.
7. Is there local community approval (blasting / use of public road to jetty / private land access
to jetty)
Jetty and Hauling access has been approved. I don’t have information for blasting yet.
FEASIBILITY STUDY?
1. What will the Feasibility Study cover (e.g. mining / transport / economics)
Normally we get (Quarry deposit and specification, Economic aspect, hauling distance and
design, potential development, weather condition, operation schedule, site design, jetty
design and construction, ETC) any additional studies will be further discussion.
2. How long will it take to complete? When will the final report be available?
Usually the consultant requires 2-3 weeks to complete the data after we signed the contract
with them.
3. Who will be the consultant?
usually SOE appointing top university as a consultant such as Bandung Technology Institution
[https://www.itb.ac.id/] or University of Indonesia [http://www.ui.ac.id/] or other SOE’s
consultant such as Yodya Karya [http://yoka.co.id/yodya/], AMKA [http://www.amka.co.id/].
But in this case the appointment for consultant can be anyone.
4. Will there be an English language version?
Yes.
5. If Feasibility Study says not to proceed, then are there an alternative quality project to use the
USD10M on?
Of course, currently I have 3 potential projects with SOE in acquiring fabric and capital
injection. I will provide a complete data if this project is not feasible.
QUARRY OPERATIONS & LOGISTICS
1. Who will be the Quarry Operator (on the ground, day to day planning, control and direction)?
HAKAASTON will place and operate their asset (Stone crusher, Trucks, Excavator) on the site.
We will put our manpower to supervise the operation, manage administration and
accounting. But this may change after we have further discussion with HAKAASTON
2. Will contract terms (i.e. payment terms) be delivery be ex works (at the jetty) or will it be at
the Construction sites?
The agreement terms with HK Holding is quite flexible. We could set the delivery agreement
to stock pile or in Sumatera jetty or even in our own jetty. We will consider all forms of
agreement by looking risk and finance aspect.
3. If at the construction site who will provide shipping (presumably barge + tug)?
Any additional services from third party will be screening by HK. It not binds to anyone but
usually HK will recommend their existing vendor to cooperate.
4. Who will provide the unloading facility on the Sumatra side?
HK Holding.
Note:
HK Holding has set a huge sales target for HAKAASTON to IPO in 2020. HK as a holding
company has been providing HAKAASTON with enough sum of equity to grow their business
by making aggressive acquisition for factory (precast, spun pile, pile) and quarry to fulfill HK
holding needs.
HAKAASTON is looking for strategic partnership to help them grow. They prefer to find partner
to acquiring more asset rather than using its own money. This will shorten their equity.
Question to Hongkong financier:
Step by step. Let’s focus on what we need to do and not create expectations with
HAKA ASTON and HK until we know we can deliver.
Feasibilities Studies:
1. Before doing FS we have to sign an MOU with HAKAASTON which mean we need to
submit our Indonesian company name to them (I can handle this issue). in this stages
our relationship with HAKAASTON will be clearer and we might get prognosis
calculation of the project.
2. I will try to talk with HAKAASTON to cover FS and report expenses or at least divide by
both parties equally.
Additional information:
1. I need to know more about the Petroleum Consultants (Asia) Pte Ltd. (your company
portfolio experience, project that is already running, funds that you have been
collected, etc.). This will help me to convince HK Holding and HAKA ASTON about my
partner capabilities.
PANNA’s name is well known and had good experience in several SOE’s companies. So I
suggest we still using “PANNA” name for our company, example PANNA RESOURCES.
Notes:
1. Can you estimate the cost for us to start at the beginning? (example. document and
agreement set up in Singapore, insurance and notary, ETC).
2. I am not doing anything as I mentioned above before you find a right financier that
confident to working with us. I believe your experience and expertise can handle this.
There is an updated information on Selajar island project:
1 Total size of quarry is 190 HA. It has 2 permit licensed (each permit license holds 88 HA).
2 There are 2 separate mountains, its 1 km distance from one to the others.
a. first mountain is next to the jetty so there is no hauling distance.
b. second mountain is 1 km distance to the jetty.
3 the draft level for the jetty is accessible for 300 ft. barge to berthing. With this size we can
maximize the shipment
4 Yes. They have blasting approval.
5 Current status HAKA ASTON is about to partnering with the land owner. IF they collaborate
with us they will transfer 4 stone crushers from other places to maximizing the production.
6 We can purchase the land partially. This will be good for us. (i.e. 1 stone crusher can cover for
10 HA; we could buy 10 HA first)
7 We discussed about their expectation with us and the investment cost can reduce to USD 7.5
– 8 million. (you can go for that amount now) after FS the actual cost may reduce 15-20%.
8 There are 5 land status in Indonesia, this land is SHM “Sertifikat Hak Milik” or (Ownership land
certification).
9 Additional product for the site: Granite Stone (tons of it)
Summary:
HAKA ASTON next target is to start mining the Selajar island sources no matter what the collaboration
will be. They understand our position and partnering with us is their preference. Thus, they give me
commencing timetable (starting 25 April):
1. 2 weeks for us to find the potential financiers
2. week 3 to start feasibility studies and document review.
3. Week 4 to make decision.
4. They accept if the drawdown may take 2 weeks after we signed the agreement. (so we only
have 6 weeks’ period of time)
What we will discuss on the 1st may? (So I can prepare necessary document)
Hi Russell,
You need to know the chronology about my relationship with ENCONA and Mr. Dindin (CEO of HK-A).
I have good record in having a business with many SOE’s especially in construction company. I give
them beneficial aspect for them such as finding them a credible sub-contractor, bringing foreign or
local investor, getting private project for them and many more. So I am not looking for the project but
the project comes to me just so you know. This leads to Mr Dindin issue, he came to me and asked me
about getting investor or loan to purchase an Island (Selajar Island). Why? Because HK-A requisition
to HK Holding in investing and acquiring the island was rejected. Therefore, DIndin asking me a favor
about this.
As I mentioned before I have few networks for investor or financier (including you) both local and
overseas. I said yes to him so he gave me detail data about the project. From here I talk with some
people and I found ENCONA. Dindin was informed and happy having ENCONA as part of the project.
Meanwhile, what Dindin and ENCONA known was I could bring overseas financier (which is you) with
low rate compare to local bank. This is something a very perfect symbiotic mutualism for every parties.
I have not stating any collaboration or deal structure with them yet. But what HK-A and ENCONA sees
the structure is like this:
Thank you.