PSL Group to invest in Indonesian coal mining business

Singapore-listed civil engineering service firm PSL Holdings Limited announced Tuesday its strategy to invest in the Indonesian coal mining industry.

The company?s unit PSL Energy Resources Pte Ltd has inked deal to provide exchangeable loan (EL) of US$3 million to Indonesian individual to fund acquisition of 100 percent shares in PT Bubuhan Multi Sejahtera (BMS). The EL will be exchanged for 11.5% of new ordinary shares in Sindo Resources, which will be 65 percent owned by Melati.

BMS is a private limited liability company domiciled in the city of Balikpapan, East Kalimantan, which currently holds 6 permits for coal mining, covering a total area of 9,000 ha. Five of these permits are IUP Exploration permits covering 8,805 ha while the last permit is an IUP Production Operation permit covering 195ha which was granted for a period of 8 years, with possible extension of tenure.

The entire EL is granted on the basis that there will be at least 25 million MT of coal reserves which BMS will be able to mine on those mining areas over which it has obtained mining rights. (alex)