Toba Bara to acquire new coal assets next year
Thursday, November 13 2014 - 01:52 AM WIB
IDX-listed coal mining company PT Toba Bara Sejahtera Tbk has allocated US$30 million to finance the acquisition of coal mines in East Kalimantan next year.
Toba Bara Corporate Secretary Pandu Sjahrir said on Thursday that his company would focus on acquiring mines distressed by the lingering weak price of the commodity. He declined to disclose the identity of the targeted coal mining firms, but told Petromindo.com that an ideal size of the IUP permit coal mine is maximum 5,000 hectares.
Funding for the acquisition will come from the $75 million revolving loan facility provided by BNP Paribas, Citigroup, and Standard Chartered Bank.
Toba Bara, which has three coal mining subsidiaries operating a combined 7,087 hectares of concessions in East Kalimantan, has already used $45 million of the loan facility.
Editing by Reiner Simanjuntak