Environmental and Social

Indo Mines and its local partner in Indonesia have spent over two years working with the local communities detailing how the mining process will impact on them. The mine will impact approximately 200 ha of the 3000ha property per year, on site processing of the iron sands will only extract about 6-8% of the total sand mass - the rest of the material is returned to the beach for reclamation and rehabilitation. The Company has legal agreements in place committing them to providing support before, during and after mining guaranteeing that the farmers will not be adversely affected by mining. Indo Mines has commenced a project in conjunction with a local University in Jogjakarta to develop more cost effective and productive cropping solutions on the rehabilitated mine areas, as well as creating arable farming land from the 1500 hectares of barren sand dunes within the Project site.

URS Australia have completed an Initial Environmental and Social Scoping Study that identified no unmanageable community or environmental issues with the development of the Project. URS indicated that there was potential for the land reclamation processes to see improved productivity of the mined out areas compared to the existing land form, and the proposed waste stream management would assist in minimising the Project's environmental impact.