ABM Investama aims to secure $105m loan for mining expansion

PT ABM Investama expects to raise loans worth up to US$105 million to finance coal mining expansion of its subsidiary PT Reswara Minergi Hartama, Kontan business daily reported on Thursday.

Reswara Minergy would need new investment of between $100 million and $150 million to develop infrastructure facilities in its coal mine concession in Nangroe Aceh

Darussalam, which is operated by its subsidiary PT Media Djaya Bersama (MDB).

ABM Investama through its subsidiary Reswara has a 70 percent stake in MDB with the remaining 30 percent is held by Media Group which is owned by Surya Paloh. MDB has coal reserves of about 169 million tons of about 75 percent of ABM's total coal reserves, which reach 221 million tons.

Reswara is building hauling roads, barge conveyor and coal port in the mining area.

ABM Investama's president director Achmad Djayanegara said that the company was negotiating the loans. But, he refused to unveil the amount of the loan required by the company.

Achmad said that the company adopted 30:70 percent financing ratio for its expansion

projects. It means that about 30 percent of the financing need will be funded by own funds and the other 70 percent by loans.(*)