Indus RI unit, Chinese firm to develop power plant in Jambi
Friday, July 24 2015 - 02:12 AM WIB
ASX-listed Indus Coal Limited said that its Indonesian coal subsidiary PT Berlian Mahkota Coal (BMC) has signed an MoU with a Chinese power plant engineering and construction company to develop a mine-mouth power plant in Jambi.
Indus did not disclose the identity of the Chinese firm, describing it only as ?Tier 1? company. The company said in a statement Tuesday that the Chinese firm would finance the development of the power plant project and the coal mine.
BMC, in which Indus has a 38 percent stake, is the 100 percent owner of the Blok 9 coal concession in Central Tebo District, Tebo Regency, Jambi. The concession has an estimated JORC resource of 94,000,000 tons of thermal coal.
Indus purchased a 38 percent equity shareholding in BMC in January 2013. Indus paid US$6.5 million in January 2013 in order to purchase the BMC stake and a 38 percent shareholding in another Indonesian company named PT Batanghari Energi Prima (BEP) which is the sole owner of mining tenements called Blocks 7.
?Since January 2013, Indus has loaned BMC a further A$4,201,298 in order to conduct exploration drilling and other development work on the Block 9 thermal coal asset. The carrying value of the company total capital exposure to BMC totals to A$12,130,612,? Indus said.
Elsewhere, Industry provided updates on the restructuring of its two existing bond issues
Indus said its securities remain suspended at the request of the company pending the release of an announcement regarding finalization of the restructuring of the terms of its two existing bond issues. As a consequence of the entering by BMC into the joint venture outlined above, the company expects to conclude the restructuring of the terms of the existing bond issues by July 31, 2015.
Indus said it has appointed CPS Capital to raise A$500,000 for the company by way of a third secured bond issue. This raising of capital for working capital purposes is subject to and conditional upon (amongst other things) the successful restructuring of the terms of its two existing bond issues. Upon the conclusion of this third bond issue, Jason Peterson will be immediately appointed to the Board of Indus as a Non-Executive Director.
The board of Indus has appointed Vinay Hariani to the chair of the board. Vinay Hariani will in his capacity as Executive Chairman of lndus work closely with the Board of BMC and the Tier 1 Chinese power plant engineering and construction company to advance the joint venture. Scott Douglas and Ashish Patel will continue as Executive Directors of Indus.
Editing by Reiner Simanjuntak