JAKARTA. PT Adaro Energy Tbk. admitted that the loan facility provided by Adaro Capital Limited for PT Trada Alam Minera Tbk. was in line with the company's business strategies and plans to work on the supply chain of coal.
The agreement for the loan (worth US$ 100 million) was signed on 5 July 2019. The loan has an interest rate of 12% per year and a period of 4 years.
In Adaro Energy's 2018 annual report, management explained that ACL is a pillar established to become the Adaro Group's treasury center for investment in financial instruments outside Indonesia.
However, in its development, ACL found transaction opportunities that led to the acquisition of Rio Tinto's ownership of the Kestrel coal mine (Kestrel) in 2018.
Head of Corporate Communication Division of Adaro Energy, Febriati Nadira, as quoted by Bisnis.com, said that the transaction was in line with ACL business. According to her, ACL continues to look for profitable investment opportunities for Adaro Group.
The business model of Trada Alam Minera, she continued, is similar to the one run by Adaro Group.
"The synergy created between the two will enable us to open up many opportunities in the coal supply chain in Indonesia," she said on Tuesday (9/7).
For the record, ADRO will maintain its coal production capacity at the level of 54 million- 56 million tonnes for the next 15 - 20 years. The range also serves as a guide for the company's production target in 2019. (ARM/AR)