BRMS to use proceeds from sale of Newmont shares to repay debt

By Brigida Ernestina Elu Wea

IDX-listed mining firm PT Bumi Resources Minerals Tbk (BRMS) will use proceeds from the planned sale of its shares in gold and copper mining company PT Newmont Nusa Tenggara (NNT) to IDX-listed integrated energy firm PT Medco International Tbk to repay debt.

BRMS Director Fuad Helmy said that both the company and Medco are still assessing the proposed transaction particularly as BRMS is seeking to repay debt to Credit Suisse AG.

BRMS through subsidiary PT Multi Daerah Bersaing (MDB) owns a 24 percent stake in NNT. The majority shareholder with 56 percent stake is Nusatenggara Partnership B.V., while other shareholders include PT Pukuafu Indah (17.8%) and PT Indonesia Masbaga (2.2%).

?We are still assessing (the proposed transaction), but for certain it must provide value for our shareholders. If an asset is released, then related debts must be repaid first, or clean up,? Fuad said.

BRMS owes a combined US$300 million worth of debts to Credit Suisse AG. The former company put the NNT stake as part of collateral when acquiring the debt in 2010.

?We can?t ascertain whether negotiation process (for the NNT stake divestment) can be completed this year,? Fuad said.

Editing by Reiner Simanjuntak