Relevant Issues of Indonesian Project Landing

I Raw material, accessory, energy consumption

Raw material:
1. How to plan the ore dressing part from tailings to 60 degree monazite?
2. Can Indonesian monazite ore be imported and exported? Can the rare earth product be
exported? Is it necessary to get the related qualification of import enterprise? What is the
specific requirement?
3. What is the purchase price of monazite (35-60 degree) required by the project? (There are three
phases of the project, the monthly handling capacity is 1050 tons after the first phase is put
into production, 12.6 thousand tons are processed annually.)
4. Please give the origin and specific composition of monazite in detail; we need long time stable
and reliable raw material supply of monazite.
Accessory:
It is necessary to investigate if Indonesia has a mature and stable supply chain for the following
accessories, otherwise, the solution will be to import from China directly.
1. Light iron powder: low sulfur, low phosphor
It is learned that it has local iron ore industry in the local, is there a large size iron plant in the
local to supply the above standard iron powder? If the monthly demand is 450 tons, how much is
the price (including the freight)?
2. Industrial sulphuric acid: 92-98% degree of purity
The monthly demand is 2000 tons, what is the local price (including the freight)?
3. Ammonium bicarbonate: ammonium content is 17%.
The monthly demand is from 210 tons to 840 tons according to the different products produced,
what is the local price (including the freight)?
4. Industrial hydrogen peroxide:
The monthly demand is 25 tons, what is the local price (including the freight)?
5. Hydrochloric acid for industrial use: the concentration is great than or equal to 30%
The monthly demand is 1000 tons, what is the local price (including the freight)?
Energy consumption:
1. What is the price per ton of industrial water?
In the case of the industrial water supply in the unified park, it is necessary to know the price of
industrial water;
If there is no unified industrial water use, it can also adopt the method of drilling its own well,
which requires knowing the local deep well price and drilling cost. (200 meters deep well with
80 tons water per hour)
2. Cost of electricity:
Smelting line: 3 sets of 500kw transformers
Separating line: 2 sets of 400kw transformers
3. Cost of natural gas:
The monthly demand of natural gas is 60 thousand m3.
3 smelting lines of the landing project need 180 thousand m3 of natural gas approximately,
1200tons separating line needs 120 thousand m3 of natural gas approximately, totally 300
thousand m3 per month.
Is natural gas connected in the industrial parks in Indonesia? What is the price?
Labor:
1. Cost of labor
High quality worker (who can speak Chinese): ? USD per month
Worker (who cannot speak Chinese): ? USD per month
2. The information needs to be implemented:
What is the monthly salary of local senior manager?
How much extra social security and welfare does the enterprise need to pay monthly for each
worker according to the normal standard?
How much is the accommodation cost of every worker per month?
How many are there the working days and statutory holidays every year?

II Workshop (excluding green area)

Given information:
3 smelting lines + 1 separating line raw material and subsidiary products (excluding the stacking
area of subsidiary products) = 240 thousand m2
Among that, the smelting production line covers an area of 12,000 m2, it is the standard workshop
with a certain storage space, and the height of the workshop is 7 meters.
Among that, the separating production line covers an area of 12,000 m2, it is the standard workshop,
and the height of the workshop is 7 meters.
The offices and laboratories can be built in the plant building to facilitate high efficient
management. The area is negligible.
Regarding the stacking of subsidiary products:
It shall decide if to use simple plant building or natural pit storage according to the local
conditions available. If the storage capacity is 10 years, we will have about 300 thousand tons.
The issues need to be implemented:
1. Will the project landing in the industrial park or the chemical park? It is better in the chemical
industry park, so that a professional third party can provide sewage treatment services to all the
enterprises in the park. If so, what is the price of sewage treatment? Try the best to avoid the
processing park.
2. Plant rent? Is there any preferential price? What does the rent include? How long is the rent-free
period?
3. Stacking of subsidiary products (The output refers to the given information of the plant. Can
natural pit be provided? Or do you have any other suggestions? How much is the cost? The
extensibility of future space needs to be considered.
4. Internal floor requirement of standard plant building: hardened cement floor
5. What is the estimated cost per square meter in Indonesia if the factory is built by itself? What is
the construction time?
6. Are there special environmental protection requirements for our processing and separation in the
industrial park? Is there any environmental requirement for stacking subsidiary product (primary
iron barrier acid)?
III Investment environment and policy support
1. Indonesian domestic rare earth industry policy
2. Enterprise operation tax
3. Tax rebates for enterprise exported products?
4. Tax rate of imported materials: equipment, raw material and auxiliary
5. Geographical location of the plant and traffic conditions (road condition, distance from the
export port)
6. Is there a third party laboratory in the local area: for the ingredient test of raw material, auxiliary,
products, etc.