Dian Swastatika gives $29.8m of loan to coal subsidiary

Indonesian listed coal group firm PT Dian Swastatika Sentosa Tbk has handed US$29.8 million in loan to its coal holding firm PT Golden Energy Mines (GEM).

The company said on Monday that the funds will be used to finance the development GEM?s coal mines in Sumatra and Kalimantan.

GEM has several coal mining subsidiaries including PT Borneo Indobara in South Kalimantan (production stage), PT Kuanshing Inti Makmur in Jambi (production stage), PT. Trisula Kencana Sakti (exploration stage) in Central Kalimantan, PT Nusantara Indah Lestari (exploration stage) in Indragiri Hulu regency, Riau province and PT Manggala Alam Lestari (exploration stage) in Musi Banyuasin regency, S. Sumatra.

According to GEM brochure, the subsidiaries have a combined deposit of more than 1 billion tons.

The company has targeted to produce around 2.5-3 million tons this year, which the coal coming from Borneo Indobara and Kuanshing Inti Makmur.

Next year, the company is expected to produce around 8-10 million tons with Kuanshing to boost production to 4-5 million tons from this year?s target of 1.5 million, the company?s senior officer told Petromindo.Com last month. The remaining will come from Borneo Indobara

By the end of November, Kuansing had expended portfolio through the acquisition of 100 percent shares of coal mining firm PT Bara Harmonis Batang Asam for US$ 1.9 million. Bara Harmonis has been producing coal at its mine in Muara Bungo regency, Jambi. (denny)