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Friday, 09 September 11
SUPRA BARA SECURES $20 MILLION LOAN - JP


The Jakarta Post reported that, Coal miner PT Supra Bara Energi says it has secured a US$20 million loan facility from BNP Paribas to buy heavy equipment for its site in Berau, East Kalimantan.

Company chief executive officer Kuhan Selvaretnam said on Wednesday that Supra Bara Energi wanted to increase production from a current level of 600,000 to 1.2 million tons per year.

"The heavy equipment will arrive at our site in Berau in November. Starting that month, we can raise production from 50,000 tons of coal per month to 100,000 tons," he said at a press conference in Jakarta.

Supra Bara Energi and BNP Paribas are now discussing the second phase of the loan facility to help the coal producer reach production targets of 3 million tons in 2013 and 5 million tons in 2014.

"The second phase of the loan will be greater than $20 million and will have a tenure of between three and five years," Kamal Osman, president director of BNP Paribas, said.

Kuhan said that Supra Bara Energi would conduct an initial public offering (IPO) if production reached 80% of its 2014 target.

Supra Bara Energi currently has seven mining sites in Kalimantan in the production phase and exports coal primarily to Asian countries such as China, India, Japan and Taiwan.
Source: The Jakarta Post



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