BRMS offers China NFC 20% stake in Dairi Prima

IDX-listed mineral mining firm PT Bumi Resources Minerals Tbk (BRMS) is considering to sell a 29 percent stake in Dairi, North Sumatra-based zinc mining firm PT Dairi Prima Mineral to China Nonferrous Metal Industry?s Foreign Engineering and Construction (China NFC) to raise funds to help finance the construction of a planned smelter and mine development, reports said on Tuesday.

BRMS Head of Investor Relations Herwin Hidayat was quoted as saying that a contract signed by the company and China NFC appointing the latter firm as the EPC contractor for the planned smelter provides an option for the Chinese firm to acquire up 29 percent stake in Dairi Prima.

BRMS controls 80 percent stake in Dairi Prima, while IDX-listed mining firm PT Aneka Tambang holds the remaining 20 percent. ?The valuation (of Dairi Prima shares) is still being discussed by both parties,? Herwin said as quoted by Kontan.

The reporters said that BRMS will need about US$400 million funds this year to help finance the development of the zinc mine and construction of the smelter, which is projected to be completed in 2017.

Meanwhile, Bisnis Indonesia quoted Herwin as saying that BRMS is currently in talks with financial institutions to seek refinancing facility for $449.59 million debt owed to Credit Suisse AG that would mature in the third quarter of this year. (*)