Golden Eagle seeking loans from local bank

IDX-listed mining company Golden Eagle Energy Tbk (formerly known as PT. Eatertainment International Tbk) expects to raise loans worth between US$25 million and $30 million from a local bank to finance exploration of the coal mine operated by the company?s subsidiary, Kontan reported on Saturday.

?We hope the loan agreement can be signed in near future,? Golden Eagle?s President Director Hendra Surya said.

The company chose to get loan from a local bank because it was easier and more efficient than if it raised loans from a foreign bank, Hendra said. But he refused to disclose the name of the local bank.

The loan would be used to partly finance exploration of a coal mine in South Sumatra owned by its subsidiary PT Triyani, which would need between $35 million and $45 million to develop the coal mine, Hendra said. ?The exploration will also be partly financed by internal funds,? he added.

The coal mine has coal reserve of 242 million tons based on standards set in joint ore reserve committee (JORC). Triyani?s mine is expected to begin production next year with an output level of one million tons per year which the company expects to ramp up to 5 million tons per year in four years.

In addition to Triyani, Golden Eagle has also another subsidiary engaged coal mine in East Kalimantan. The subsidiary is PT International Prima Coal (IPC), which operates a coal mine with coal reserves of about 11 million tons.

The company, which is also partly owned by PT Tambang Batubara Bukit Asam (PTBA) expected to increase its production to 1 million tons this year from 560,000 tons in 2011. (*)