Ann: Kupang Smelting Hub Facility Project Update, page-33

Do you at least acknowledge thay we will know by 31st May which way this is headed (depending on whether the fidicuary agreement is signed by then and GMC receive the $6M for 25% stake in the project, or they don't).


The objective facts that the non-bias posters state on here (which you refer to as "repetitous rants") are directly linked to the announcements made by GMC.


Take the shipment of the smelter for example. How many announcements have GMC made that refer to the said smelter being shipped or about to be shipped or imminent shipping?


Or take the repetitive delays especially when it comes to receiving funding. How many delays occurred with Pak, only to find that he pulled out of the "imminent" transaction. These delays are happening again, culminating in the latest funding deadline of 31st May (contingent on fidicuary agreement).


As for the power issue, it is obviously extremely critical to the viability of the Project (hence why it is such a hot topic on here)

On 9th November 2017, GMC stated "it has executed a Memorandum of Understanding (“MOU”) with state-owned power utility PT PLN (Persero) for the provision of up to 20 MVA power supply to the Company’s Kupang Smelting Hub Facility in West Timor, Indonesia. The MOU covers the supply of power to the Kupang Facility and is valid for 12 months from the signing date, which may be extended when required. The technical implementation of this MOU will be outlined in a Power Purchase Agreement which is expected to be executed by end of December 2017"

On 7 May 2018 GMC stated "GMC has signed a five-year agreement with national power provider PT PLN (Persero) Wilayah NTT (“PT PLN”) for the supply of 20 MVA power to the Kupang Smelting Hub Facility Site. Both parties have agreed on the minimum hours of electricity usage per month based on a minimum payment of 40 hours per month (first 2 years); and a minimim of 200 hours per month (remaining 3 years). PT Gulf has also agreed not to build its own power generator, so long as PT PLN can provide the amount of electricity power required by PT Gulf."

From the announcement on 20th April 2017:




From the above announcement GMC state:
2 smelters = 14MVA
Power cost = US$360.47/t
FeMn sold = 31,640t pa
Power cost = US$11.41M
Rate = US$0.11 /kWh

Cost = Power x hours x Rate
$11.41M = 14,000kVA x hours × $0.11/kWh
Hours = 7,410 per annum
= 20.3 hrs per day or 600 per month

In comparison, via the purchase agreement GMC have committed to only purchasing 40 hours per month for the first 2 years. 40 hours at 20MVA = 57 hours at 14MVA (power of smelters).

Surely, the intention of a power supply agreement is to guarantee the maximum supply of 600 hrs per month required to achieve its forecasts?

Not sure I understand the rationale of why the minimum power agreement is at 10% of what is actually required?

Can anyone shed some light please??

Cheers