ICMA says U.S. policy on loan restriction hamper financing for mining

By Bambang Atmaja

Executive Director of Indonesian Mining Association (ICMA) Priatna Suhala said that the U.S. government policy that bars its Export-Import bank from giving loans to coal mine-related business has set obstacles for Indonesian miners to raise financing for their businesses.

The policy was issued at the time local miners badly need financing to construct smelter that requires over US$1.5 billion per unit.

?For investors, it is a bad news, because it is difficult now for them to get loan,? Supriatna told Petromindo.com as saying at Shangrilla Hotel on Tuesday.

The U.S. government issued the policy about two months ago as parts of its commitment to protect environment, according to Suhala.

?The Exim bank is not allowed to finance coal-related industry. So, if a person would like to borrow overseas for mining business, (coal-fired) power plant projects, the funds will not be given,? he said.

Editing by Johannes Simbolon