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Friday, 18 September 09
STANCHART TO ADVISE BAYAN ON INDONESIA COAL FINANCING


Indonesian coal miner PT Bayan Resources Tbk said on Wednesday it has appointed Standard Chartered Bank as a financial adviser for raising at least $150 million for a briquetted coal project.

Standard Chartered is advising PT Kaltim Supacoal -- a joint venture firm between Bayan and a unit of Australia's White Energy Ltd -- on financing for the expansion phase of Bayan's Tabang mine in East Kalimantan on Borneo island to 5 million tonnes in annual capacity, it said.

'Based on current information and proposed expansion plans, the final amount available under the facility is expected to be a minimum of $150 million,' Bayan said in a statement.

The joint venture was established to turn high moisture coal produced in Bayan's Tabang mine into a higher energy clean burning product using technology provided by White Energy for use in coal-fired power plants.

Bayan plans to get production up to 15 million tonnes a year from an initial target of 5 million.

It has completed construction of the first coal upgrading plant and has produced first batch upgraded clean coal briquettes last month at its plant which has a capacity of 1 million tonnes per annum.

The financing will be conditional upon the successful completion of due diligence by Standard Chartered Bank including the satisfactory operation of the new plant, the firm said.

Standard Chartered has also agreed to provide Kaltim Supacoal with an immediate interim working capital facility of $10 million to assist with its operating and production ramp-up expenses.

Bayan is one of Indonesia's largest coal miners, operating a 15 million tonnes per year coal terminal at Balikpapan in East Kalimantan.
Source: Reuters



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