Adaro uses internal funds to finance IndoMet acquisition
Thursday, June 9 2016 - 01:27 AM WIB
He said on Wednesday that the company has a solid funding capacity. According to company first quarter 2016 financial report, cash and cash equivalent reserves stood at US$709.41 million.
He added that the company is currently preparing the required funds for the acquisition, as such it has yet to decide on capital expenditure for IndoMet.
ASX-listed BHP Billiton on Tuesday announced it had secured an agreement with Adaro subsidiary PT Alam Tri Abadi to sell its 75 percent stake in IndoMet for US$120 million. The transaction will boost Alam Tri?s stake in IndoMet to 100 percent.
Garibaldi described the acquisition of IndoMet as a ?rare opportunity,? as the project produces high calorie coking coal required by the metal industry. ?There are plenty of thermal coal players, but for coking coal (producer) it?s a rare opportunity,? he said.
IndoMet Coal comprises of seven Coal Contracts of Work which are located in Central and Eastern Kalimantan. The Haju mine, which is located within the Lahai Coal Contract of Work, has a production capacity of one million tons of coal per annum and has been in production since 2015. So far, this is the only IndoMet mine project that has started production.
Completion of the sale is conditional upon the fulfillment of customary regulatory approvals. During the approval period BHP Billiton and Adaro will work together to facilitate a smooth transfer of ownership, BHP said.(*)