Dayaindo to start coal shipment this month

Publicly listed PT Dayaindo Resources International Tbk is scheduled to start shipping 50,000 tons of coal from the mines operated by its "operation cooperation" (KSO) partner CV Bina Insan Sukses Makmur in Tanah Bumbu, South Kalimantan, Investor Daily reported Monday.

 

The shipment would take place in the third week of August 2007, the company said

 

Dayaindo "controls" four coal mining concessions, three of which are operated by its KSO partners, including Bina Insan Sukses Makmur whicih operates 530.2 hectares of mining areas, CV Bina Insan Lestari Mandiri which controls 1,639 hectares of mining areas in Tanah Bumbu and CV Anugrah which operates a concession measuring 10 hectares of land in Martapura, South Kalimantan. Besides, Dayaindo has 3,775 hectares of mining areas in Tanah Bumbu.

 

Dayaindo's president director Sudiro Andiwiguno said in Jakarta last week that the company had targeted to clinch a free on board (FOB) sales contract amounting 70,000 tons this month.

 

Earlier, the company has targeted to its production capacity to reach at least 100,000 metric tons per month in the last quarter of this year.

 

Meanwhile, Dayaindo will use a bridging financing amounting to US$ 5 million from Gracious Wealth International Inc to boost its working capital.

 

The company plans to issue rights to raise Rp 500 billion to strengthen its capital structure in November this year. (*)