Adaro secures $120 million in loans

IDX-listed mining firm PT Adaro Energy Tbk has secures US$120 million in loans from a number of foreign banks including DBS Singapore, Standard Chartered Bank, UOB Bank and ANZ Bank, to strengthen the company?s working capital.

About $80 million of the total loans were part of the loans committed by the banks in the previous year. The loans would have a maturity period of a year and would carry an annual interest rate of 1.75 percent above the London Interbank Offered Rate (LIBOR).

The remaining $40 million comprised of new loans from DBS Singapore, carrying an annual interest rate of 2 percent above LIBOR and a maturity period of 36 months.

The company?s president director Garibaldi Tohir, said in Jakarta on Thursday that the loans would be used to strengthen the company?s working capital.

This year, through its South Kalimantan coal unit PT Adaro Indonesia, the company plans to increase coal production to between 42 and 45 million tons from about 38.5 million tons last year, with an estimated coal price in 2009 between $52 and $65 per ton. In 2008, average coal price is about $38 and $39 per ton, he added. (denny)