JBIC to provide two billion yen loan to Pamapersada

Japan Bank for International Cooperation (JBIC) has agreed to provide a two billion yen (US$ = Y117.6) loan to Indonesia?s largest mining contractor PT Pamapersada (PAMA) Nusantara to enable the latter to purchase mining equipment from Japanese heavy equipment manufacturer Komatsu Ltd.

JBIC said in a statement recently that the loan was co-financed by Australia and New Zealand Banking Group Limited, Tokyo Branch (agent bank) and Mizuho Corporate Bank, Ltd.

?This is the first time that JBIC has relied on an Indonesian private company's credit to provide a loan,? the agency said.

PAMA, a subsidiary of PT United Tractors Tbk, has recently bought out several coal mining and marketing firms for a total of US$34 million.

The coal mining companies are PT Nusantara Citra Jaya Abadi, PT Eka Satya Yanatama, PT Kadya Caraka Mulya, which all have concession in Rantau, Banjar regency, South Kalimantan province.

PAMA produced 42.4 million tons of coal from its mining clients in 2006. (Robert)