Golden Energy obtains fresh loans from Bank Mandiri

IDX-listed coal mining company PT Golden Energy Mines Tbk announced Friday that the company and its subsidiary PT Borneo Indobara (BIB) had on August 9 signed loan deeds with Bank Mandiri.

Golden Energy said in a statement that the first agreement was for loan with limit of US$50 million, interest rate of 6.50 percent per annum, and lending period of seven years.

The company said that the loan is for general corporate purposes including to refinance existing bank loans.

The second agreement was for loan with limit of $65 million, interest rate of 6.50 percent, and lending period of seven years. The loan will be used to help finance capital expenditure in the development coal mine facilities by BIB in Tanah Bumbu Regency, South Kalimantan.

Golden Energy is a unit of conglomerate Sinar Mas Group. This year the company plans to produce 14.35 million tons and sell 15.38 million tons to overseas and domestic customers. Some 80 percent of the production will come from BIB with the balance produced from its Jambi mine PT Karya Inti Mining.

Last month, Golden Energy said that BIB and another subsidiary Kuansing Inti Makmur received a combined $35 million working capital loan from Bank Mandiri.

Editing By Reiner Simanjuntak