PSL to acquire a Jambi coal miner

By Romel S. Gurky

Singapore-listed civil engineering service firm PSL Holdings Limited, through its wholly owned subsidiary, PSL Energy, has extended an exchangeable loan of US$2,998,846 to individual Charles Antonny Melati (CAM) for the purpose of funding his acquisition of shares in PT. Bubuhan Multi Sejahtera (BMS), a limited liability company incorporated in Jambi, as a part of its strategy to invest in the Indonesian coal mining industry.

The Exchangeable Loan is exchangeable into a shareholding interest of 11.5 percent in the capital of Sindo Resources, allowing PSL to own an 11.5 percent minority interest in Sindo Resources, which share transfer is expected to complete in the next six months.

BMS is a private limited liability company that 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.

BMS has already commenced production operations at the mining site located in Sungai Buluh, a village located within the Muara Bulian subdistrict of Batanghari Regency, Jambi, since July 2011. At the end of February this year, based on unaudited management accounts provided to PSL, BMS has made total cumulative sales of up to 230,000 tons of coal.

Editing by Er Audy Zandri