Cita Mineral provides corporate guarantee for WHW
Wednesday, November 16 2016 - 12:32 AM WIB
IDX-listed PT Cita Mineral Investindo Tbk said that it will provide corporate guarantee for its 30 percent-owned PT Well Harvest Winning Alumina Refinery (WHW) to help ensure the latter would be able to repay loans from creditors when it matures in 2023.
Cita said in a statement on Tuesday that the company would guarantee US$136.5 million, or 30 percent of the maximum $455 million loans to be received by WHW from a number of creditors.
The creditors include Bank of China Limited-Jakarta Branch, Bank of China Limited-Singapore Branch, DBS Bank Limited, Indonesia Export Financing Agency (Lembaga Pembiayaan Ekspor Indonesia), Oversea-Chinese Banking Corporation Limited and PT Bank OCBC NISP Tbk.
Cita said that the company will start getting revenue and profit next year as it has been able to sell its bauxite ores to WHW?s alumina smelter in Ketapang, West Kalimantan.
WHW has started operating a 1 million tons per annum alumina smelter since June of this year. The company is seeking loans to help finance the expansion of the smelter to gradually reach a total capacity of 4 million tons per year.
Other WHW shareholders include China Hongqiao Group Ltd (55%), Winning International Group Pte Ltd (10%), and Shandong Weiqiao Alumunium & Electricity Co. Ltd (5%).
Editing by Reiner Simanjuntak