BRMS agrees with Chinese firm to finance Dairi zinc project
Wednesday, October 23 2013 - 09:44 AM WIB
IDX-listed firm PT Bumi Resources Mineral Tbk (BRMS) has signed an agreement with China Non-Ferrous Metal Industry?s Foreign Engineering and Construction Co. Ltd (NFC) by which the latter will finance the development of tin and zinc project of PT Dairi Prima Mineral (PTDPM) in Dairi regency, North Sumatra.
Bumi said a statement filed with the Indonesian Stock Exchange on Wednesday that NFC agreed to cover 85 percent of financing needed for the project and in line with this, both will jointly carry out a feasibility study on the project.
One the conditions that the funds have been secured and all terms and conditions of the agreement have been fulfilled in compliance with the existing regulation, BRM has also agreed to cooperate with NFC in 1) engineering, procurement and construction of the Dairi project 2) the sale of tin and zinc to be produced by PTDPM and 3) participating interest of NFC in PTDPM.
The Dairi mine is one of the most valuable assets owned by BRMS. The firm also has stakes in several mineral mines in Indonesia, including in the Batu Hijau copper and gold mine West Nusa Tenggara, which is operated by American firm Newmont. The firm is partnered with state owned firm PT Aneka Tambang Tbk (Antam) in Dairi project with BRMS having 80 percent, Antam 20 percent.
Until recently, BRMS was controlled by the Bakrie family. Early this month, the family handed over a 42 percent stake in BRMS to China?s sovereign wealth fund China Investment Corp (CIC) following a swap deal for the repayment of debt worth $1.3 billion owed by Bakrie to CIC.
Editing by Johannes Simbolon