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Friday, 25 September 09
INDONESIA STOCK EXCHANGE EXAMINES BUMI DEAL WITH CHINESE SOVEREIGN WEALTH FUND
 The Jakarta globe reported that, The Indonesia Stock Exchange is looking into the $1.9 billion financing deal between PT Bumi Resources, the country’s largest coal producer, and a Chinese sovereign wealth fund that would require the Bakrie group company to ultimately pay 19 percent interest at maturity, an exchange director said on Thursday.
Eddy Sugito, a director of the exchange, known as the IDX, said the bourse was seeking an explanation of the phrase “debt-like instruments,” which was how Bumi described the nature of the investment being purchased by China Investment Corp., the sovereign wealth fund.
Eddy said the IDX would analyze Bumi’s disclosure to the exchange, as well as media reports on the deal, before deciding whether to request further explanations from Bumi.
Bumi president director Ari S Hudaya on Wednesday announced that CIC would invest $1.9 billion in “debt-like instruments” offered by Bumi and that the money would be used to restructure Bumi’s debts and finance capital expenditure.
Ari said $600 million was repayable in four years, $600 million in five years and the remaining $700 million in six years. The investment attracts a 12 percent annual cash coupon, with a total internal rate of return of 19 percent, with the balance payable at the time of final maturities.
Ari Pitojo, an equity analyst at PT Mandiri Sekuritas, said the market needed an explanation from Bumi about the nature of the “debt-like instruments” and the high internal rate of return.
Dileep Srivastava, Bumi’s vice president for investor relations, told the Jakarta Globe that there was no reason for the market to worry about the 19 percent rate on the debt.
“[This deal] has huge potential because we have common interests, and it’s the first big investment by CIC in Indonesia,” Dileep said. He would not elaborate on “debt-like instruments,” but he hinted that Bumi’s assets could be offered as collateral to CIC.
“I can’t disclose the details yet as I am bound by the confidentiality agreement,” he said. “All I can say is that the security packages that are being required will be the same as earlier packages [offered to creditors].
“If you want to buy a new house, and you don’t have money, what do you use to get a loan?”
Pardomuan Sihombing, the head of research at PT Paramitra Alfa Sekuritas, said on Thursday that the 12 percent annual interest rate was relatively cheap.
“When compared to Indonesian government dollar bonds, which have an 11 percent annual interest rate, the 1 percent premium for a corporate loan is very cheap,” Pardomuan said.
He said Bumi’s ability to maintain sufficient cash flow and repay the debt would depend on its earnings growth, which could be threatened by a plunge in global coal prices.
“If Bumi’s earnings growth remains stable at near its current growth rate, I think they would have no trouble repaying the debts. But there would be trouble if coal prices slump again in later years,” Pardomuan said.
Bumi posted earnings of $125 million in the first quarter of this year. It has not yet released second-quarter earnings, nor has it issued any earnings forecast for this year.
The company’s total debt, including short-term debt, stood at $3.4 billion in the first quarter, compared to assets of $5.5 billion.
Pardomuan said he thought commodity prices, particularly energy prices, would remain cheap prior to a full global economic recovery.
He added that information available on the Bumi-CIC deal was incomplete, and he expected Bumi to make further public disclosures about it soon.
In June, Bumi won shareholder approval to pledge the assets of two coal miners, PT Kaltim Prima Coal and PT Arutmin Indonesia, and one noncoal miner, Australian-based Herald Resources, for more loans, the amount of which the company did not disclose at the time.
Bumi’s shares have more than tripled in price this year, making it the best-performing stock in the 19-stock MSCI Indonesia Index.
Source: The Jakarta Globe
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Friday, 25 September 09
FREIGHT RATE CUTS MAKING SOUTH AFRICAN COAL MORE COMPETITIVE IN ASIAN MARKETS
Mining Weekly reported that, Coaltrans South Africa MD Gerard Strahan highlighted the country’s sudden increase in coal exports to southern Ch ...
Friday, 25 September 09
XSTRATA TO BUILD ITS OWN RAIL CAPACITY TO SHIP AUSTRALIAN COAL
Bloomberg reported that, Xstrata Plc, the world’s largest exporter of coal used by power stations, will establish its own rail haulage capacit ...
Thursday, 24 September 09
INDIA CEMENT CO'S TO AWARD 200,000T COAL TENDER
Reuters reported that, India's biggest cement maker ACC Cement Ltd and Gujarat Ambuja will award on Thursday Sept 25 a tender for 100,000 tonnes ea ...
Thursday, 24 September 09
YUDEAN TO SIGN CO-OPERATION LETTER OF INTENT WITH RUSSIA COAL TRADE COMPANY
In the recent days, Gao Shiqiang, deputy manager of Yudean Group Co., Ltd. went and carried out the friendly talks with SUEK and inked the trade co- ...
Thursday, 24 September 09
ANGLO EYES DOUBLED METALLURGICAL COAL OUTPUT BY 2018
Mining group Anglo American could double its production of coal used for steel making by 2018 if all of its unapproved projects went ahead, the comp ...
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- LBH Netherlands Bv - Netherlands
- Power Finance Corporation Ltd., India
- Kaltim Prima Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kepco SPC Power Corporation, Philippines
- VISA Power Limited - India
- Salva Resources Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Siam City Cement - Thailand
- Neyveli Lignite Corporation Ltd, - India
- Marubeni Corporation - India
- Bukit Asam (Persero) Tbk - Indonesia
- Minerals Council of Australia
- Globalindo Alam Lestari - Indonesia
- Independent Power Producers Association of India
- White Energy Company Limited
- Straits Asia Resources Limited - Singapore
- SMC Global Power, Philippines
- India Bulls Power Limited - India
- Price Waterhouse Coopers - Russia
- Global Green Power PLC Corporation, Philippines
- Metalloyd Limited - United Kingdom
- AsiaOL BioFuels Corp., Philippines
- Trasteel International SA, Italy
- Merrill Lynch Commodities Europe
- Economic Council, Georgia
- Medco Energi Mining Internasional
- Attock Cement Pakistan Limited
- Eastern Coal Council - USA
- Iligan Light & Power Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Binh Thuan Hamico - Vietnam
- Jaiprakash Power Ventures ltd
- Tata Chemicals Ltd - India
- Riau Bara Harum - Indonesia
- Leighton Contractors Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Australian Commodity Traders Exchange
- Ambuja Cements Ltd - India
- Oldendorff Carriers - Singapore
- CIMB Investment Bank - Malaysia
- Holcim Trading Pte Ltd - Singapore
- Planning Commission, India
- Barasentosa Lestari - Indonesia
- Indian Energy Exchange, India
- Petron Corporation, Philippines
- Edison Trading Spa - Italy
- Standard Chartered Bank - UAE
- Meenaskhi Energy Private Limited - India
- Ministry of Transport, Egypt
- Rio Tinto Coal - Australia
- Aboitiz Power Corporation - Philippines
- CNBM International Corporation - China
- Indogreen Group - Indonesia
- Bhoruka Overseas - Indonesia
- Electricity Authority, New Zealand
- Sree Jayajothi Cements Limited - India
- Ministry of Finance - Indonesia
- Grasim Industreis Ltd - India
- Sical Logistics Limited - India
- Singapore Mercantile Exchange
- Rashtriya Ispat Nigam Limited - India
- Simpson Spence & Young - Indonesia
- Uttam Galva Steels Limited - India
- Wilmar Investment Holdings
- Bangladesh Power Developement Board
- Coal and Oil Company - UAE
- Cigading International Bulk Terminal - Indonesia
- Mercuria Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Port Waratah Coal Services - Australia
- Commonwealth Bank - Australia
- SN Aboitiz Power Inc, Philippines
- McConnell Dowell - Australia
- Parliament of New Zealand
- Coastal Gujarat Power Limited - India
- Intertek Mineral Services - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Cement Manufacturers Association - India
- Kohat Cement Company Ltd. - Pakistan
- Agrawal Coal Company - India
- Interocean Group of Companies - India
- The Treasury - Australian Government
- New Zealand Coal & Carbon
- Meralco Power Generation, Philippines
- Madhucon Powers Ltd - India
- Dalmia Cement Bharat India
- Ceylon Electricity Board - Sri Lanka
- Malabar Cements Ltd - India
- Antam Resourcindo - Indonesia
- Coalindo Energy - Indonesia
- Bhushan Steel Limited - India
- Romanian Commodities Exchange
- Bahari Cakrawala Sebuku - Indonesia
- Sojitz Corporation - Japan
- Global Coal Blending Company Limited - Australia
- Alfred C Toepfer International GmbH - Germany
- Central Java Power - Indonesia
- Altura Mining Limited, Indonesia
- Indo Tambangraya Megah - Indonesia
- Mjunction Services Limited - India
- Wood Mackenzie - Singapore
- PTC India Limited - India
- Thiess Contractors Indonesia
- Bukit Makmur.PT - Indonesia
- Therma Luzon, Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- GMR Energy Limited - India
- Indika Energy - Indonesia
- Mintek Dendrill Indonesia
- GAC Shipping (India) Pvt Ltd
- Tamil Nadu electricity Board
- IHS Mccloskey Coal Group - USA
- Eastern Energy - Thailand
- Timah Investasi Mineral - Indoneisa
- Anglo American - United Kingdom
- Energy Link Ltd, New Zealand
- Mercator Lines Limited - India
- Ministry of Mines - Canada
- Miang Besar Coal Terminal - Indonesia
- TeaM Sual Corporation - Philippines
- Siam City Cement PLC, Thailand
- Latin American Coal - Colombia
- Vizag Seaport Private Limited - India
- Indonesian Coal Mining Association
- Aditya Birla Group - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thai Mozambique Logistica
- Baramulti Group, Indonesia
- Kumho Petrochemical, South Korea
- Essar Steel Hazira Ltd - India
- Bukit Baiduri Energy - Indonesia
- Bhatia International Limited - India
- Larsen & Toubro Limited - India
- Africa Commodities Group - South Africa
- Indian Oil Corporation Limited
- ICICI Bank Limited - India
- The State Trading Corporation of India Ltd
- Manunggal Multi Energi - Indonesia
- South Luzon Thermal Energy Corporation
- ASAPP Information Group - India
- The University of Queensland
- IEA Clean Coal Centre - UK
- SMG Consultants - Indonesia
- Global Business Power Corporation, Philippines
- Chamber of Mines of South Africa
- Karaikal Port Pvt Ltd - India
- Borneo Indobara - Indonesia
- OPG Power Generation Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Lanco Infratech Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Banpu Public Company Limited - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Savvy Resources Ltd - HongKong
- Asia Pacific Energy Resources Ventures Inc, Philippines
- PowerSource Philippines DevCo
- European Bulk Services B.V. - Netherlands
- Petrochimia International Co. Ltd.- Taiwan
- Makarim & Taira - Indonesia
- Orica Mining Services - Indonesia
- Maheswari Brothers Coal Limited - India
- Formosa Plastics Group - Taiwan
- Samtan Co., Ltd - South Korea
- Heidelberg Cement - Germany
- Toyota Tsusho Corporation, Japan
- Carbofer General Trading SA - India
- Star Paper Mills Limited - India
- Vedanta Resources Plc - India
- Jorong Barutama Greston.PT - Indonesia
- Kartika Selabumi Mining - Indonesia
- MS Steel International - UAE
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Semirara Mining and Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Parry Sugars Refinery, India
- GVK Power & Infra Limited - India
- Chettinad Cement Corporation Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Goldman Sachs - Singapore
- Krishnapatnam Port Company Ltd. - India
- London Commodity Brokers - England
- Asmin Koalindo Tuhup - Indonesia
- Australian Coal Association
- Bayan Resources Tbk. - Indonesia
- Videocon Industries ltd - India
- Renaissance Capital - South Africa
- Orica Australia Pty. Ltd.
- Posco Energy - South Korea
- Pendopo Energi Batubara - Indonesia
- Kideco Jaya Agung - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Electricity Generating Authority of Thailand
- PNOC Exploration Corporation - Philippines
- Energy Development Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- PetroVietnam Power Coal Import and Supply Company
- International Coal Ventures Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Kobexindo Tractors - Indoneisa
- Bharathi Cement Corporation - India
- Deloitte Consulting - India
- Xindia Steels Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Sidhee Cement - India
- Jindal Steel & Power Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Sindya Power Generating Company Private Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Georgia Ports Authority, United States
- Sakthi Sugars Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Central Electricity Authority - India
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