SIAC rules Borneo to make additional payment for acquisition

By Ruli Setiawan

IDX-listed coking coal mining company PT Borneo Lumbung Energi & Metal Tbk said that the Singapore International Arbitration Centre (SIAC) has ruled the company to complete payment for the acquisition of PT Asmin Koalindo Tuhup, PT Mahakam Pertambangan, and PT Indofront Abadi.

Borneo said in a statement seen Thursday that according to the ruling, the company must make additional payment of US10 million plus penalty of $3.15 million to Transasia Minerals Ltd and Bondline Ltd before April 20, 2016. Borneo must also pay the extra arbitration expenses.

The arbitration ruling says that in case Borneo fails to make the additional payment for the acquisition, it must return the ownership of the three acquired companies three days after executing ruling has been issued by the Central Jakarta District Court, and that the arbitration petitioners return the sum that had been paid by the company plus interest.

Borneo said that it is currently reviewing the various alternative measures to be taken in relation to the arbitration ruling in line with existing law.

Editing by Reiner Simanjuntak