LOGISTICS

IMPORTANCE OF LOGISTICS

IMP recognizes that logistics will play a critical role in its success. The primary scope of logistics will be to transport both Lead and Zinc Concentrate from the mine to the IMP jetty, then barge it to Java and haul it to the IMP Smelting & Purification Plant. As planned, this will cost approximately $36 per metric ton of Concentrate delivered to the plant in Java.

However, IMP recognizes that inefficiency in this regard will directly harm the bottom line, as will improved efficiency. Initially logistics may cost more as less capital intensive solutions will be used, but as IMP operations expand and capital becomes less expensive, it will seek to reduce the const through strategic use of capital, including the possibility of purchasing the jetty (which is currently planned), purchasing barges, purchasing crawling cranes, and purchasing trucks for hauling.

LOGISTICS PROCESS

The process will begin as Concentrate loaded into 2-tonne bags, which will temporarily be stored on the loading platform at the mine until being loaded to trucks and hauled to the IMP jetty.

At the jetty the bags will be stored in a warehouse where a traveling crane (as seen above) will move the bags into storage, and then as the bags are ready to be hauled to the jetty, they  will be removed from the warehouse via a traveling crane overhanging a loading area allowing a truck to be loaded in two trips of a traveling crane assuming 12 bags per truck.

The current plan is that a local logistics company would be hired to transport the Concentrate from the mine to the IMP Jetty in order to provide opportunity for independent truckers who would be hired to do the work. Because of the bulk density of the Concentrates (Lead Concentrate has a density of 6 MT/m3 and Zinc Concentrate a density of 3.0 MT/m3) IMP is currently evaluating purpose built vehicles, working on axle weights allowable on these roads, to maximize loads and minimize physical vehicle bed sizes and haulage costs.

At the jetty, loading will be done by IMP either using a crawling crane, or loading backs 4 at a time to light weight trucks using an excavator and then unloading the bags in the barge using an excavator. The barge will be directly chartered by IMP and will sail to a jetty in Northern Serang, Banten, on the Island of Java, where it will be unloaded either by crawling crane or with excavator and trucks.

Hauling from the mine to the jetty will occur concurrently with mining, requiring at most one day after a designated supply for a barge shipment has been mined. Loading to a barge will generally require 2 days after the barge arrival, with an additional day for documentation to be completed. The sailing time to Northern Serang will be 6 days (subject to sea state), with a projected 2 days for unloading and 3 days for hauling to the plant.

The cost of logistics as described would equate to approximately $36 per metric ton of Ore or Concentrate shipped, which will translate to a const of approximately $72 per metric ton of metal ingot produced, representing approximately 7% of revenue for Lead ingots, and 6% of revenue for Zinc ingots. As planning becomes more detailed, the question of how much of the logistics infrastructure should be owned by IMP will be addressed.

Below is a step by step visual graphic of the planned logistics process: