MNC Investama coal units obtain $25m loan from Raiffeisen Bank
Tuesday, September 2 2014 - 04:47 AM WIB
IDX-listed investment company PT MNC Investama Tbk said its coal and infrastructure subsidiaries have obtained a combined US$25 million loan facilities from Austria?s Raiffeisen Bank International AG (RBI).
Investama said in a filing with the Indonesia Stock Exchange Monday that it has provided corporate guarantee for the loan to be used to help finance development and expansion programs of the subsidiaries including coal miner PT Bhumi Sriwijaya Perdana Coal (BSPC), PT Putra Muba Coal (PMC), and PT MNC Infrastruktur Utama (MIU).
BSPC operates a 6,866 hectares of coal concession in Bayung Lencir District, Musi Banyuasin Regency, South Sumatra, which is estimated to have 217.98 million tons of resources. The concession has begun production trial, with output per August of this year totaling 104,646.64 tons of coal.
PMC operates two concessions including PMC-A covering 1,526 ha in Tungkal Jaya District, Musi Banyuasin Regency, with estimated resources of 10.39 million tons, and PMC-D covering 2,497 ha in Sungai Lilin District in the same regency with estimated resources of 19.38 million tons. As of August 22, PMC has produced nearly 490,000 tons of coal.
Investama said that part of the loan facility will be used to help increase production at the two coal subsidiaries.
Another part of the loan will be used to help finance the expansion projects of its coal infrastructure subsidiary MIU, which operates coal ports in Musi Banyuasin, South Sumatra, and in Samarinda, East Kalimantan, Investama said.
Investama said that expansion activities at the Samarinda port include increasing the capacity of the jetty (completed), increasing the capacity of barge from 270 ft to 300 ft, develop one additional jetty (90 percent done), and 1000t/hour conveyor belt (progress: 32 percent completed).
Meanwhile, projects at the South Sumatra port include expanding the barge capacity from 270 ft to 300 ft (in progress), and develop one additional jetty (completed and already in operation), Investama said.
Editing by Reiner Simanjuntak