TNB Coal secures $68 million loan to acquire S. Kalimantan coal mine
Wednesday, August 20 2003 - 03:22 PM WIB
Malaysia's state-owned power utility Tenaga Nasional Bhd (TNB) announced on Wednesday that its 70 percent-owned subsidiary, TNB Coal, had secured a non-recourse loan facility totalling US$68 million to finance the buyout of Dynamic Acres Sdn. Bhd.
TNB said the loan facility is about 80 percent of the purchase price for the acquisition. Earlier report said that the purchase price was $85 million.
Dynamic Acres owns a 99 percent stake in PT Dasa Eka Jasa Tama, a South Kalimantan?based coal mining. TNB Chairman Awang Adek Hussin said earlier that Dynamic Acres' coalmine had estimated reserves of 35 million tons.
The acqusition is part of TNB's efforts to diversify fuel for its power plants. Coal now accounts for 31 percent of its fuel mix.
According to a report, TNB has estimated that it will need a minimum of 27 million tons of coal for up to 20 years to feed its domestic power plants. (robert)