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Overview

The Earthstone Group operates across two continents - Asia and Africa and the products are supplied to world markets. Countries like Indonesia and Niger represent our major mining operations.

Why Indonesia?

Indonesia is one of the most geologically prospective countries in the world. According to the Fraser Institute survey of mining companies, Indonesia ranks 15th on its analysis of pure mineral potential. A number of major mines have demonstrated the potential for discovery of large deposits and successful development into production.

Indonesia is one of the world's largest producers of tin (ranked second after China), Coal (ranked third largest thermal coal exporter after Australia and South Africa) and copper (ranked third after USA and Chile). It also produces significant quantities of gold and nickel. Minerals and related products represented 19% of Indonesia's total exports, with gold being the largest revenue earner. Indonesia is also a major producer of bauxite, phosphates iron sand, with potential for alluvial diamond as well.

There has been very little new foreign mining investment in Indonesia, especially for hard rock mining, in the last 10 years. The new mining Law had been passed last year, and although many experts consider this to be rather controversial - this is a quantum step in development of mining business in this country. Please, take a look at our Brochure: Indonesia Mining Law that describes salient points of the law.

One of the benefits available to mineral developers in Indonesia is the use of the ‘master list' facility. This allows an investor to import capital goods (i.e. machinery, equipment spare parts) at reduced rates of import duty and value added tax (VAT). This facility is widely used in the mining and oil and gas industry. With the exception of products imported under ‘master list' facilities, most imported mining products attract tariffs ranging between 0-40 per cent plus VAT, while imported products on oil production equipment attract tariffs ranging between 10-25 per cent plus VAT. The master list is submitted for approval to the Indonesian Investment Coordinating Board. Approvals can be extended for various reasons including expansion of existing mining activities.

Indonesia's close proximity with world's two fastest growing economies: India and China, (both net importers of various minerals and coal) is an added advantage.

With such vast natural resources, Indonesia naturally became our preferred choice of destination to foray into the business. Earthstone along with its local partners has 100% economic interest in mining concessions of various minerals and coal, currently at varied stages of development. We are committed to explore high quality minerals and coal in Indonesia and contribute to the nation's economy.

Why Republic of Niger?

We expanded our mining operations to Republic of Niger in October 2008. This was a very opportune time, as the government is encouraging diversification of the country's mining industry. We are currently exploring tenements in the uranium rich region of Tim Mersoi Basin. We intend to invest up to $50 million USD over the next 5 years in Niger.

Niger is the fourth largest Uranium producer in the world. It currently produces 3,434tU Uranium per year, which accounts for 9% of global production. Poorly endowed with other natural resources, Niger gets an essential contribution to its export income from its significant uranium exports.

Enjoying more than thirty years of safe, efficient and smooth operations, Niger uranium production appears as an essential component for a suitable stability of world uranium supply, particularly for the European Union.

Uranium concentrates are sold respectively to COGEMA (AREVA Group) (about two-thirds) and the other foreign partners, ENUSA of Spain and OURD of Japan.

The remaining reserves and resources are sufficient to sustain a stable production far into the coming decades. While being of lower grades than those mined in Canada, Niger's ore-bodies are by far the richest on the African Continent, and are comparable or higher than those mined in Australia, not even mentioning other producing countries, all having lower grades.


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