Pamapersada secures US$265 million loan
Saturday, May 12 2012 - 03:44 AM WIB
The six lenders are Oversea-Chinese Banking Corp (OCBC), DBS Bank Ltd, Mizuho Corporate Bank Ltd, Bank of Tokyo-Mitsubishi UFJ Ltd, Citigroup mc, and Sumitomo Mitsui Bankmg Corp.
?The loan would be used to finance capital expenditure and general operational cost,? said a media statement as reported by Bloomberg on Friday.
The loan is divided into two groups based on maturity. Up to US$132.5 million is a loan maturing in five years, while the remaining US$132.5 million carries a three-year maturity profile which can be extended by two years.
Pamapersada is a mining contractor owned by United Tractor, one of top-performing subsidiaries of the country?s biggest business conglomeration, PT Astra International.
Last year, Pamapersada acquired a 20 percent stake in PT Bukit Enim Energi for US$21 million.
Bukit Enim Energi controls a mining concession (KP) in Muara Enim district, South Sumatra. The mine holds 110 million tons of coal reserve, with calories of between 4,500 and 6,000 kkal (medium-high).
The acquisition paves the way for Pamapersada to become the contractor in the Bukit Enim mine, which is considered greenfield.
The company will conduct land clearance and build necessary infrastructure before the mine can enter the production phase, which is targeted at early 2013. Early production target is set at 500,000 tons.
Up to 2011, United Tractors still relied on coal production from its two other units, PT Tuah Turangga Agung (TTA) and PT Dasa Eka Jasatama (DEJ).
Last year, DEJ produced 2.5 million tons of coal while TTA 1.5 million tons. This year, TTA is targeted to increase production to 2.5 million tons while DEJ?s production target is still at 2.5 million tons.(*)