ABMM secures $150m loan for mining development

IDX-listed PT ABM Investama (ABMM), through its subsidiary PT Reswara Minergi Hartama, has secured loans worth US$150 million to finance development of the company?s coal mining sites, The Jakarta Post reported on Friday

The loans come from Qatar National Bank (QNB), Jakarta listed Bank QNB Kesawan and the Indonesian Eximbank.

"Most of the $150 million fund will be used for infrastructure development on mining sites in Nagan Raya regency and Aceh Barat regency in Aceh and a small amount for working capital," Reswara president director Harry Asmar said in Jakarta on Thursday.

ABMM holds 100 percent stake in Reswara, which owns a 70 percent stake in PT Media Djaya Bersama, the owners of the two concessions in Aceh. The infrastructure development, which includes port development, road hauling, offices, workshops and other facilities, is estimated to cost $125 million in total.

The infrastructure development is expected to be completed in November this year and will help ABMM?s Aceh sites accommodate higher coal delivery.

Its Aceh sites had previously secured delivery for produced coal, including a contract to supply to cement company PT Lafarge Cement Indonesia.

Besides Media Djaya Bersama, Reswara also has concession in South Kalimantan operated by its subsidiary PT Tunas Inti Abadi.

Total Reswara?s resources have reached 561 million tons and 221 million tons in reserves.

Coal sales reached 4 million tons last year and is projected to increase to 6 million tons this year. (*)