Dayaindo to acquire nickel mine, coal terminal in Sulawesi

Indonesia-listed firm PT Dayaindo Resources International Tbk will conduct the second right issue on June 28 this year to obtain Rp 1.98 trillion (1US$=Rp 9,200) of fresh funds to finance its expansion plan, the company said in public expose on Tuesday.

About Rp 142 billion of the fresh funds will be used as working capital for fulfilling current on-hand coal sales contracts and for mining activities on its own and joint operating concessions. This year, Dayaindo has secured coal export contracts of 16.13 million tons (MT) for 2010 shipments.

The company will acquire a 70 percent stake valued at Rp 350 billion in PT Anugerah Tompira Nikel (ATN), which has nickel concession in Banggai regency, Central Sulawesi.

The mine started commercial production in the last quarter of 2008 with initial shipment of 51,900 nickel ore sent to Australian-listed mining giant BHP Billiton. The mine is expected to produce 200,000 metric tons of nickel ore this year and the output will be ramped up to 400,000 and 840,000 tons in 2011 and 2012, respectively.

The company through its subsidiary PT Daya Infrastruktur Sempurna will also acquire a 70 percent stake worth Rp 100 billion in PT Belang Belang Coal Terminal, which holds the right to develop and operate coal loading port in Mamuju, West Sulawesi.

The coal terminal is expected to start operation in the second quarter of 2012 with a coal loading-unloading capacity of 30 MT per year. Terminal has a handling rate of 6,000 metric tons / hour.

The unloading and loading of coal from the barge to ships will be carried out at sea with a water depth of 20-26 meters, which is accessible by 300 ft barges and bulk carrier vessels. (denny)