PTBA seeks Rp 12t loans from Chinese banks

IDX-listed coal mining giant PT Bukit Asam Tbk (PTBA) is seeking for about Rp 12 trillion worth of loans from Chinese banks to help finance the construction of a huge coal-fired power plant in South Sumatra, Kontan reported on Friday.

The paper quoted PTBA President Director Milawarma as saying that the lending agreement was expected to be signed in the first quarter of next year, which should pave the way for the company to begin the construction of the 2x620 mine-mouth power plant in Muara Enim, South Sumatra.

PTBA and China?s Huadian Co Ltd have formed a joint venture called PT Huadian Bukit Asam Power, in which PTBA owns a 45 percent stake, to develop the US$1.59 billion power plant project.

Milawarma said that if everything goes as planned, the power plant is projected to start commercial operation in 2017. (*)