Borneo expects to resume coal production within two weeks

By Cepi Setiadi

IDX-listed hard coking coal mining company, PT Borneo Lumbung Energi & Metal Tbk (BLEM) said it is expecting to resume coal production within two weeks.

Borneo's Director, Kenneth Raymond Allan told Petromindo.com on Thursday that the company is still waiting for the result of cassation petition filed by its creditors, Standard Chartered and Noble Resources.

?We will resume our coal production within two or three weeks, we are still waiting for the (result of) the cassation process,? he said adding that so far the company as a stockpile of up to 700,000 tons, which are enough to meet customers? need for several months.

In 2011 Standard Chartered approved a US$1 billion loan to BLEM and was repayment of the loan while the commodities trader Noble is seeking repayment of $104 million. BLEM, which is in financial struggle due to the coal market downturn, filed a petition for Suspension of Debt Payment Obligation (PKPU) with the local court. On January 20, 2016, the Central Jakarta Commercial Court approved on January the petition.

Following the court?s ruling, Kenneth announced in March that BLEM will resume production in April. However in mid-April, Standard Chartered and Noble filed petitions for cassation with the Supreme Court. According to Kontan, Standard Chartered and Noble filed their respective petition for cassation on April 11 and 12.

Editing by Johannes Simbolon