MIRA INFORM REPORT
|
Report No. : |
316865 |
|
Report Date : |
16.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
P.T. KALTIM PRIMA COAL |
|
|
|
|
Registered Office : |
M1 Building Mine Site Sangatta, Kutai Timur Regency East Kalimantan |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Date of Incorporation : |
09.03.1982 |
|
|
|
|
Com. Reg. No.: |
AHU-AH.01.10-38322 |
|
|
|
|
Legal Form : |
P.T. (Perseroan Terbatas) or Limited Liability Company |
|
|
|
|
Line of Business : |
Coal Mining |
|
|
|
|
No. of Employee : |
5,046 Persons |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No complaints |
|
|
|
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Indonesia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDONESIA ECONOMIC OVERVIEW
Indonesia, a vast polyglot nation, has grown strongly since
2010. During the global FINANCIAL
crisis,
Indonesia outperformed its regional neighbors and joined China and India as the
only G20 members posting growth. The government has promoted fiscally
conservative policies, resulting in a debt-to-GDP ratio of less than 25% and
historically low rates of inflation. Fitch and Moody's upgraded Indonesia's
credit rating to investment grade in December 2011. Indonesia still struggles
with poverty and unemployment, inadequate infrastructure, corruption, a complex
regulatory environment, and unequal resource distribution among regions.
President Joko WIDODO - elected in July 2014 - has emphasized domestic economic
growth in his first few months in office and in November 2014 reduced fuel subsidies,
a move which could help the government increase spending on its development
priorities. Indonesia, with the nine other ASEAN members, will form the ASEAN
Economic Community in 2015.
|
Source
: CIA |
Company
name
P.T. KALTIM PRIMA COAL
Address
Head
Office
M1 Building Mine Site
Sangatta, Kutai Timur Regency
East Kalimantan
Indonesia
Phones -
(62-549) 521 800, 521 155
Fax - (62-549) 521 701
Email - info@kpc.co.id
or marketing@kpc.co.id
Building Area - 4 storey
Office Space - 1,200 sq. meters
Region - Commercial
Status - Owned
Jakarta
Office
Bakrie Tower, 15th
Floor
Complex Rasuna
Epicentrum
Jl. HR. Rasuna Said Kav. B-2
Jakarta 12960
Indonesia
Phones - (62-21) 5794 5700 (hunting)
Fax -
(62-21) 5794 5710
Email - info@kaltimprimacoal.co.id
Building Area - 34 storey
Office Space - 260 sq. meters
Region - Commercial
Status - Rent
Coal
Mining Site
Sangatta and Bengalon
Kutai Timur Regency
East Kalimantan
Total Area -
90,938 hectares
Region -
Coal mining zone
Status -
Coal Mining Agreement Exploitation (PKP2B)
Year
of Incorporation
09
March 1982
Legal
Form
P.T.
(Perseroan Terbatas) or Limited Liability Company
Company
Reg. No.
The Ministry of Laws and Human Rights
a. No. AHU-02038.AH.01.02.Tahun 2009
Dated 12 January 2009
b. No. AHU-AH.01.10-00025
Dated
03 January 2011
c. No.
AHU-AH.01.10-18205
Dated 22 May 2012
d. No.
AHU-AH.01.10-38322
Dated
12 September 2013
Company
Status
Foreign
Investment Company (PMA)
Permits
by the Government Department
a. The Department of Finance
NPWP No. 01.000.278.0-091.000
b. President of Republic of Indonesia
No. B-50/Pres/10/1981
Dated 31 October 1981
c. The Investment Coordinating Board
No. 40/III/PMA/1992
Dated 21 January 1992
d. The Department of Mines and Energy
No. 982/SJ.94/SJH/1982
Dated 04 March 1982
e. Coal Mining Agreement Exploitation
PKP2B Contract No.J/Ji.DU/16/82
Dated 08 April 1982
Affiliated
Company
A
member of the BAKRIE Group
CAPITAL
AND OWNERSHIP
Capital
Structure :
Authorized Capital - US$. 30,000,000.- (Rp. 19,042,500,000.-)
Issued Capital - US$. 30,000,000.- (Rp.
19,042,500,000.-)
Paid up Capital - US$. 30,000,000.- (Rp.
19,042,500,000.-)
Shareholders/Owners
:
Local Partners
a. PT. Bumi Resources Tbk. of Indonesia - US$. 4,040,000.- (13.6%)
b. PT. Kutai Timur Sejahtera of Indonesia - US$. 1,500,000.- ( 5.0%)
c. PT. Sitrade Coal of Indonesia - US$. 9,720,000.- (32.4%)
Foreign Partners
a. Sangatta Holding Ltd., of Australia - US$. 2,850,000.- ( 9.5%)
b. Kalimantan Coal Ltd., of Mauritius - US$. 2,850,000.- ( 9.5%)
c. Bhira Investment Limited
(Ex. Tata Power Co. Ltd., of Mauritius) -
US$. 9,000,000.- (30.0%)
BUSINESS
ACTIVITIES
Lines of Business
:
Coal Mining
Production Capacity :
Coals - 55.0 million tons p.a.
Total Investment :
Equity Capital - US$ 30.0 million
Started Operation :
1989
Brand Name :
KPC
Technical Assistance
:
None
Number of Employee :
5,046 persons
Marketing Area :
a. Local
(Domestic) - 30%
b. Export - 70%
Main Customers :
a. Electric Power Plants
b. Steel Industries
c. Overseas buyer in Japan, Korea, Taiwan,
China and others
Market Situation :
Very Competitive
Main Competitors :
a. PT. Adaro Indonesia
b. PT. Kideco Jaya
Agung
c. PT. Berau Coal
d. PT. Indominco
Mandiri
e. PT. Arutmin Indonesia
f. PT. Gunungbayan Pratamacoal
g. Etc.
Business Trend :
Fluctuating
BANKER,
AUDITOR & LITIGATION
Bankers:
a. Standard Chartered Bank
Jl. Jend. Sudirman Kav. 33A
Jakarta Selatan
Indonesia
b. P.T. Bank MANDIRI Tbk
Jl. MH Thamrin No. 5
Jakarta Pusat
Indonesia
Auditor
:
Internal Auditor
Litigation
:
No
detrimental filling in our database
FINANCIAL
FIGURE
Total
Income/Revenues :
2010
– US$. 1,956.1 million
2011
– US$. 2,608.0 million
2012
– US$. 2,362.7 million
2013
– US$. 2,625.3 million
2014
– US$. 1,138.6 million (as of 30 June 2014)
Net
Profit (Loss) :
2010
– US$. 101.0 million
2011
– US$. 363.3 million
2012
– US$. 149.9 million
2013
– US$ 70.4 million
2014
– US$. 36.2 million (as of 30 June
2014)
Total
Assets :
2010
– US$. 1,221.9 million
2011
– US$. 1,574.5 million
2012
– US$. 1,901.3 million
2013
– US$. 1,709.0 million
2014
– US$. 1,263.9 million (as of 30 June 2014)
Payment
Manner :
Sometime
delay
Financial
Comments :
Satisfactory
KEY
EXECUTIVES
Board of Management :
President Director - Mr. Saptari Hoedaja
Directors -
a. Mr. Sowmyan Ramakrishnan
b. Mr. Minesh Shri Khrishna Dave
c. Mr. Stefan Vincent White Ramirez
d. Mr. Andrew Christoper Beckham
Board of Commissioners :
President Commissioner - Mr. Samin Tan
Commissioners - a. Mr. Anil Kumar Sardana
b. Mr. Nalinkant Amratlal Rathod
c. Mr. Sanjay Dube
d. Mr. Alexander Ramlie
Signatories :
President
director (Mr. Saptari Hoedaja) or one of the directors (Mr. Sowmyan Ramakrishnan,
Mr. Minesh Shri Krishna Dave, Mr. Stefan Vincent White Ramirez and Mr. Andrew
Christoper Beckham) which must be approved by Board of Commissioners.
CAPABILITIES
Management Capability :
Good
Business Morality :
Good
OVERALL
PERFORMANCE
P.T. KALTIM PRIMA COAL (P.T. KPC) was established in
March 1982 with an authorized capital of US$ 2,000,000.- of which US$ 400,000.-
was issued and paid up. The company was founded by CRA EXPLORATION Pty. Ltd. of
Australia and The BRITISH PETROLEUM COMPANY Plc. of the United Kingdom as the
original shareholders. The Articles of Association was approved by the Minister of Law and Human Rights
(formerly Department of Justice) of the Republic of Indonesia by virtue of
Decision Letter No. Y.A. 5/208/5 dated 16 March 1982.The company’s
Articles of Association have frequently been changed.
Based on annual report of P.T. KPC 31 December 2005, its
shareholders composition are SANGATA HOLDING LIMITED (24.5%), KALIMANTAN COAL LIMITED
(24.5%), P.T. SITRADE COAL (32.4%), BUMI RESOURCES Tbk. (13.6%) and KUTAI TIMUR
ENERGI (5.0%). In August 2006, P.T. BUMI RESOURCES Tbk., planned to sell whole
shares of P.T. KPC and P.T. ARUTMIN to P.T. BORNEO LUMBUNG ENERGI worth US$
3.25 billion. However, the plan was
cancelled because P.T. BORNEO LUMBUNG ENERGI faced financial difficulties.
In April 2007, some 30% shares of P.T. KPC were sold to
TATA POWER Company Ltd, a company of India domiciled in Mauritius. Since that
time whole shares of P.T. KPC have been controlled by KALIMANTAN COAL Ltd
(9.5%), SANGATTA HOLDING Ltd (9.5%), P.T. BUMI RESOURCES Tbk (13.6%), P.T.
KUTAI TIMUR ENERGI (5%), P.T. SITRADE COAL (32.4%) and TATA POWER Ltd of
Mauritius (30%).
Pursuant to the notary deed of the company,
on September 10, 2009 the authorized capital was raised to US$. 30,000,000.-
entirely was issued and fully paid up.
Concurrently the shareholders of the company are PT. BUMI RESOURCES Tbk.
(13.6%), PT. KUTAI TIMUR SEJAHTERA (5.0%), PT. SITRADE COAL (32.4%), all of
Indonesia, and SANGATTA HOLDING Ltd., of Cayman Island (9.5%), KALIMANTAN COAL
Ltd., of Mauritius (9.5%) and BHIRA INVESTMENT Ltd., (formerly Tata Power Co.
Ltd.) of Mauritius (30.0%). The deed of
amendment was made by Aulia Taufani, SH., was approved by the Ministry of Law
and Human Right in its Decision Letter No. AHU-AH.01.10-18254, dated October
21, 2009 and No. AHU-AH.01.10-0025, dated January 3, 2011.
Most recently by notarial Deed No. 8 dated
August 1, 2013 drawn up by Humberg Lie, SH., the company board of directors and
the board of commissioners had been changed.
The deed of amendments was approved by the Ministry of Law and Human
Rights in its decision letter No. AHU-AH.01.10-38322 dated September 12, 2013.
Since then, no changes have been effected in term of its shareholding
composition and capital structures to date.
We observed that PT. SITRADE COAL, SANGATTA
HOLDING Ltd., and KALIMANTAN COAL Ltd., are subsidiary companies of P.T. BUMI
RESOURCES Tbk. So P.T. BUMI
RESOURCES Tbk., owns 65% shares of P.T.
KPC. Pursuant to the consolidated
financial statement of P.T. BUMI RESOURCES Tbk., for ended 19 August 2014, the
shareholders of P.T. BUMI RESOURCES Tbk., are Credit Suisse AG SG Branch S/A
(23.09%), Raiffeisen Bank International AG, Singapore (6.09%), Citibank London
S/A Glencore International AG (3.88%), PT. bakrie & Brother Tbk (2.64%),
PT. Transpacific Mutualcapital (2.31%) and Public (61.99%).
P.T. KPC of KPC acquired a Foreign
Investment (PMA) facility issued by Capital Investment Coordinating Board
(BKPM) for dealing with coal mining and distillation under working contract
term or KKB by acquiring originally a mining concession in Sangata region,
Kutai Timur Regency (East Kalimantan) with coal reserve of 474 million tons. It
has been in commercially operating since January 1991 with a total production
capacity of 13.5 million tons per annum.
Pursuant to 2011 Annual Report P.T. BUMI RESOURCES Tbk., that KPC owns
mining concessions of approximately 90,938 hectares in Sangatta and Bengalon in
the East Kalimantan province of Indonesia.
KPC’s Sanggata mines are close to the port
facilities at Tanjung Barat, which is linked to the mine by an overland
conveyor of approximately 13 km in length.
The Bengalon mine is also close to the coast, being linked to its port
facilities by a 22 km haul road. The
close proximity of all the mines to the ports provides KPC with the advantage
of low mine to port transportation costs.
KPC produces three grades of coal:
-
Prima, a high quality, high energy, low ash, medium sulfur and low moisture
coal.
-
Pinang, similar to Prima but with higher moisture content.
-
Melawan, sub-bituminous coal with low sulfur and ash, and high moisture
content.
Mining Processes
KPC operations includes a series of open
pits, coal preparation facilities, 13.2 km overland conveyor to the coast and a
world class marine terminal capable of handling bulk carriers of up to 220,000
DWT. Mining is by conventional truck and shovel. Between six and twelve open
pits are in operation at any one time operating 24 hours a day, 365 days a
year.
Overburden and coal are removed in sequence
according to a detailed mine plan designed to ensure final product quality
parameters are met. An average of 9.0 bank cubic meters (bcm) of overburden is
removed for each ton of coal mined. Overburden is dumped in mined out areas or
out of pit prior to rehabilitation and reforestation. At present there are 9
open pits in operation, 4 of which are operated by KPC and 5 by mining
contractors.
KPC-owned mining fleet currently consists of
190 haul trucks (138 OB trucks and 52 Coal trucks), 35 shovels/ backhoes (22 OB
diggers and 15 Coal diggers) and about 200 units of other mobile equipment.
Haul trucks range from 80 to 360 tons capacity and shovels to 33 cub m.
capacity. The fleet is fully serviced and maintained on site. KPC also utilizes
additional rental equipment and the mining contractors operate their own fleets
of equipment.
Now, KPC is the second biggest coal mining company
after P.T. ADARO INDONESIA. P.T. KPC's
operation has in 2007 produced a total coal of 35.0 million tons increased to
36.3 million tons in 2008 to 40.3 million tons in 2009 declined to 40.0 million
tons in 2010 and rose again to 40.5 million tons in 2011. In 2012, P.T. KPC’s total coal production at
the Sangatta and Bengalon mines reached 41.3 million tons increased to 53.5
million tons in 2013.
KPC’s 2013 Coal
Production
|
Description |
Sangatta |
Bengalon |
Total |
|||
|
2012 |
2013 |
2012 |
2013 |
2012 |
2013 |
|
|
Stripping Overburden (BCM) |
450.1 |
475.3 |
77.2 |
77.8 |
527.3 |
553.1 |
|
Stripping Ratio (BCM/Ton) |
12.01 |
11.1 |
11.4 |
11.1 |
11.9 |
11.1 |
|
Coal Mined (mill. tons) |
37.5 |
42.8 |
6.8 |
7.0 |
44.3 |
49.8 |
|
Coal Production (mill. tons) |
34.4 |
45.5 |
6.9 |
7.9 |
41.3 |
52.5 |
KPC’s 2013 Coal
Reserves
|
Description |
Coal Resource (in million tons) |
Coal Reserves (in million tons) |
||
|
2012 |
2013 |
2012 |
2013 |
|
|
Sangatta Area |
7,530 |
7,714 |
1,032 |
924 |
|
Bengalon Area |
1,554 |
1,554 |
216 |
236 |
|
Total |
9,084 |
9,268 |
1,248 |
1,160 |
PKP2B
or Coal Contract of Work (CCoW) – PT. Kaltim Prima Coal
On April 8, 1982, P.T. Kaltim Prima Coal (KPC)
entered into Coal Contracts of Work (CCow) with PN Tambang Batubara and
subsequently transferred to PT. Tambang Batubara Bukit Asam (Persero) – (PT.BA)
whereby KPC was appointed as sole contractors for coal operation for thirty
(30) years from the start of operation with respect to specific mining area in
the eastern and southeastern part of Kalimantan, initially 790,000
hectares. The CCoWs give the right to
KPC to take 86.5% of the coal produced from the final production process and
the balance of 13.5% shall be retained by PT. BA.
As consideration for such CCoW, KPC shall,
among other conditions, finance the acquisition costs of materials, spare
parts, and fixed assets required in the contract of work. However, all fixed assets and spare parts inventories
shall become the property of PT. BA upon arrival at the Indonesian port of
import or when purchased locally.
Under CCoW, KPC continue to have the right to use such fixed assets and
inventories for coal operations as long as KPC require, but they are
responsible for the maintenance thereof.
Accordingly, these cost are reflected as assets in KPC financial
statements.
KPC is fully responsible for financing the
exploration and subsequent operation of the mining area, the latter being
dependent on the discovery of adequate coal deposits. KPC is also obligated to pay the rent on the
mining area to Government of Indonesia (GOI) through PT. BA.
As further stipulated in the CCoW, in the
event that any part of the area to be explored does not contain any
commercially viable coal deposits, KPC may relinquish such area to PT. BA. Accordingly, since 1999 KPC has relinquished
1,889,809 hectares of 92% of the mining area.
As of December 31, 2011, the mining areas are 90,938 hectares for KPC.
Effective July 1, 1997, all rights and
obligations of PT. BA under the CCoW were transferred to the GOI represented by
the Ministry of Mines and Energy, based on the contract amendment dated June
27, 1997 executed by KPC and PT. BA and approved by the Ministry of Mines and
Energy on October 7, 1997. The Cow of
KPC will expire in 2021.
Commitments
and Significant Agreements
On October 19, 2003, KPC entered into an agreement with
Glencore Coal Mauritius Ltd. (Glencore), under which Glencore agreed to act as
the exclusive marketing agent for sales of KPC’s coal outside Japan. As compensation, KPC is required to pay a
commission of 5% of sales. The marketing
agreement is effective for a period of (12) years from the date of the
agreement.
On July 6, 2005, the Glencore marketing agreement was
amended and restated in order to make ICRL and Indo Kaltim parties to the
marketing agreement, Under the amended and restated marketing services
agreement, Glencore agreed to provide marketing services for KPC, ICRL, and
(following a transfer of KPC’s CCoW to Indo Kaltim) Indo Kaltim.
On July 14, 2011, KPC, Glencore and ICRL, entered into an
Amended and Restated Marketing Agreement.
Under the Amended and Restated Marketing Service Agreement, Glencore was
appointed as the exclusive agent for the purposes of providing marketing and
sales agency services relating to the sales of the KPC’s and ICRL’s products
worldwide excluding Japan, including KPC’s domestic sales and sales under the
existing coal contracts and ICRL’s sales. From the date of the amended and
restated marketing agreement, Glencore will be entitled to commission at the
rate of 5% of the net slaes value of any of the KPC’s and ICRL’s sales made
pursuant to existing and new KPC’s and ICRL’s sales contracts.
On January 9, 2004, KPC entered into an agreement with
Mitsubishi Corporation (Mitsubishi), under which Mitsubishi agreed to act as
the exclusive marketing agent of KPC in Japan.
As compensation, KPC is required to pay a commission of 5% of sales. The marketing agreement is valid for a period
of 12 years, may be renewed based on a new joint agreement. On July 6, 2005, the Mitsubishi marketing
services agreement was amended and restated in order to make ICRL and Indo
Kaltim parties to the Mitsubishi marketing services agreement. Under the amended and restated marketing
services agreement, Mitsubishi agreed to provide marketing services to KPC,
ICRL and (following a transfer of KPC’S CCoW to Indo Kaltim) Indo Kaltim.
On September 1, 2010, Bumi Resources Japan Co. Ltd. (BRJ)
entered into a marketing advisory agreement with Mitsubishi Corporation
(Mitsubishi) (the “Marketing Advisory Agreement”) whereby BRJ agreed to
undertake various marketing, advisory and other services to assist Mitsubishi to
market coal produced by PT. Kaltim Prima Coal (KPC) as contemplated by the
marketing agreement between Mitsubishi and KPC dated January 9, 2004 as amended
(the “KPC Marketing Agreement”).
Mitsubishi agreed to pay BRJ 45% of the actual marketing commissions
received by Mitsubishi from KPC as consideration for the services
rendered. The Marketing Advisory
Agreement continues until the earliest of January 8, 2016, the date of which
the KPC Marketing Agreement is terminated or the date the Marketing Advisory
Agreement is terminated as agreed by the BRJ and Mitsubishi.
Financial Condition
Until this time P.T. KPC has not been
registered with Indonesian Stock Exchange, so that they shall not obliged to
announce their financial statement.
According to PT. Bumi Resources Tbk., that the total income/revenues of
P.T. KPC in 2010 amounted to US$ 1,956.1 million with a net profit of US$ 101.0
million, increased to US$ 2,608.0 million with a net profit of US$ 363.3
million in 2011 to US$ 2,362.7 million with a net profit of US4 149.9 million
in 2012 and to US$ 2,625.3 million with a net profit of US$ 70.4 million in
2013. As per 30 June 2014, its total
income/revenue was US$.1,138.6 million with a net profit of US$.36.2 million.
Financial highlights of the Company as of 31 December 2011, 2012, 2013 and as
of 30 June 2014 (expressed in US Dollar) are below:
|
Description |
30 June 2014 |
31 December |
||
|
2013 |
2012 |
2011 |
||
|
Total assets |
1,263,871,557 |
1,709,009,882 |
1,901,317,953 |
1,574,509,703 |
|
Total Liabilities |
1,073,729,109 |
1,377,926,670 |
1,420,220,153 |
1,157,407,536 |
|
Total Income / Revenues |
1,138,635,714 |
2,625,344,998 |
2,362,694,554 |
2,607,962,803 |
|
Net Profit / Income |
36,212,402 |
70,412,601 |
149,952,802 |
363,304,934 |
Since April 2012, the management has been
led by Mr. Saptari Hoedaja AKA Ari Saptari Hudaja (56) as the president
director replacing Mr. Nalinkant Amratlal Rathod (65) being now as the
commissioner of the company. Mr. Hoedaja
also holds position as President Director of PT. Bumi Resources Tbk. He was graduated from Institut Teknologi
Bandung in mechanical Engineering in 1983.
In his daily activities, he is assisted by four directors namely Mr.
Sowmyan Ramakrishnan (66) Mr. Minesh Shri Khrishna Dave (56), Mr. Stefan
Vincent White Ramirez (43) and Mr. Andrew Christoper Beckham (48). Reputation of the P.T. KPC’s management in
coal mining is very good having maintained wide relation with private
businessmen of home and overseas as well as with the government sectors. So far we did not hear that the company’s
management has been involved in business malpractices or detrimental cases
being settled in local district court.
They have wide relations with private businessmen within and outside the
country and with the government sector.
P.T. KPC is still favorable for normal
business transaction. However, in view of unstable economic condition in the
country and the declining coal price in the past year, we recommend to treat
prudently in extending loan to the company.
Local
Media Checks:
BUMI completes debt payment, BRMS sees
interest from China
Anggi M. Lubis, The Jakarta Post, Jakarta |
Business | Fri, July 04 2014, 12:12 PM
Indonesia’s largest coal miner PT Bumi
Resources (BUMI) announced on Thursday the transfer of its 19 percent stake in
coal unit PT Kaltim Prima Coal to China Investment Corporation (CIC), as part
of its debt repayment, was complete.
The stake is equal to US$950 million, reducing Bumi’s debt to CIC to $1.04
billion.
Bumi president director Ari Hudaya said that he welcomed CIC as his company’s
equity partner, adding that the transfer was a major step in the restructuring
of Bumi’s financial performance and the reduction of its debt.
“We are confident our revised capital structure and the recovery of coal prices
will enable us to return to profit making,” he said in a statement.
Bumi will also transfer equity worth $150 million and a 42 percent stake in
another subsidiary — non-coal miner PT Bumi Resources Minerals (BRMS), which is
valued at $257 million — in September.
Bumi is also looking to raise Rp 8 trillion ($671.2 million) in a rights
offering in September this year to pay numerous debts.
Among the debts it needs to pay is $150 million owed to the CIC through Country
Forest Ltd. (CFL), $150 million owed to Castleford Investment Holdings Ltd.,
and another $150 million that is part of the $375 million guaranteed
convertible bonds.
Meanwhile, BRMS also announced on Thursday that Chinese giant China Nonferrous
Metal Industry’s Foreign Engineering & Construction (NFC) was interested in
developing its copper and gold mine in Gorontalo, Southeast Sulawesi.
BRMS CEO Suseno Kramadibrata on Thursday announced that the Chinese miner had
expressed its interest through a letter of intent signed by its vice president
Ma Jinping on June 24.
Suseno said that the letter did not elaborate on the specific cooperation as
NFC was still reviewing the data on the Gorontalo mine.
“Two months after signing the letter of intent, NFC must submit a more specific
cooperation plan in an effort to monetize Gorontalo’s copper and gold
reserves,” he said in a written statement.
The plan will involve ways to raise money for capital expenditure; selecting
contractors for the engineering, procurement and construction (EPC); and
identifying the offtakers for the final outputs to be produced.
“Obviously, we will make sure that the final cooperation agreement will be
beneficial for both NFC
and BRMS. It must add significant value to our shareholders,” Suseno said.
“Otherwise, we can always pursue opportunities with other parties.”
NFC is one of the largest mining and construction companies in the non-ferrous
metal industry in China, operating a number of copper and zinc-lead mines, open
pit and underground mines, at home and in other countries such as Mongolia and
Myanmar. The Shenzhen-listed firm also operates a smelting facility with
capacity up to 210,000 tons per annum.
BRMS currently owns a 80 percent stake in PT Gorontalo Minerals, which holds
the contract of work to mine the 36,070-hectare (ha) copper and gold concession
in Gorontalo, Sulawesi. State-run diversified miner Aneka Tambang holds the
remainder.
The company is developing 292 million tons ore resources from PT Gorontalo
Minerals’ Cabang Kiri and Sungai Mak sites with an average content of 0.5
percent copper and 0.47 grams per ton of gold.
The non-coal miner has recently stated that it would shift its core business in
Gorontalo from copper to gold, following uncertainties in the construction of a
copper smelter to be built by PT Nusantara Smelting.
The development of the copper mine would take a minimum of three years,
starting from 2015 at the earliest.
If the smelter cannot be completely established by 2019, Suseno said that it
might have to turn the Gorontalo business to gold mining to pocket income,
arguing that the investment to operate a gold mine is expected to be lower than
copper, also with quicker payback.
While waiting for certainty on the smelter development, the company said that
it would look for other partners to provide copper smelting and refining
facilities for its Gorontalo mine.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.40 |
|
|
1 |
Rs.92.15 |
|
Euro |
1 |
Rs.66.48 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
ANK |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.