Indomining secures $15m term loan facility
Thursday, June 20 2013 - 02:21 AM WIB
PT Indomining, a subsidiary of IDX-listed mining group PT Toba Bara Sejahtra, has signed a US$15 million term loan facility agreement with Standard Chartered Bank (SCB), Singapore branch.
Toba Bara said in a statement obtained Wednesday that the term loan facility agreement was signed by Arthur Simatupang, President Director of PT Indomining and a representative of SCB Singapore branch, in Jakarta. ?This term loan facility has a 3 year tenor with interest rate of LIBOR plus applicable margin per year?, stated Arthur Simatupang, President Director of PT Indomining (IM) and also Director of Toba Bara, in the statement.
Arthur further explained that this term loan facility would be part of the strategy to enhance synergy among Toba Bara?s subsidiaries. Such term loan facility will primarily be used by Indomining to finance its capital expenditures, which includes constructing a new coal processing plant (CPP), purchasing equipment, development of supporting infrastructures and other capital expenditures.
After the completion of the new CPP, IM?s CPP capacity is expected to increase from current 3 million tons/year to 6 million tons year. The new CPP is scheduled to be completed by third quarter of 2013.
The increase capacity at IM?s CPP will also be used by Toba Bara?s subsidiary, PT Trisensa Mineral Utama (TMU) in processing its coal. This collaboration is expected to improve synergy and cost efficiency particularly for TMU. By utilizing production facilities within the same Group, TMU is able to lower its costs associated with transportation, coal processing and use of jetty facility.
Toba Bara continues to strive to increase coal production in 2013 with a consolidated target of 5.8 -6.4 million tons, the company said.
Editing by Reiner Simanjuntak