UPDATE 1-Indonesia's Borneo Lumbung slashes 2013 coking coal output goal
* Hopes to reschedule payment period for $500 mln of debt
* Slices demand forecast from POSCO-Krakatau steel mill
By Fathiya Dahrul
JAKARTA, Oct 16 (Reuters) - Indonesia's Borneo Lumbung Energy & Metal has cut its 2013 coking coal production target by a third to 3 million tonnes, the chief executive said on Wednesday, and plans to extend its window to repay a large chunk of its $795 million debt.
Problems affecting the company's Asmin Koalindo Tuhup (AKT) mine in Central Kalimantan could mean 2013 production is 1.5 to 2 million tonnes less than was originally forecast for this year, CEO Alexander Ramlie said at a public meeting with shareholders.
Earlier Borneo forecast its output of coking coal, used in the production of steel, to reach 4.5 million tonnes this year versus 4.2 million tonnes in 2012. In 2014, Borneo hopes to produce 4 million to 5 million tonnes, Ramlie said.
The forecast shortfall comes after the firm announced a first-half net loss of more than $111 million on revenues that had more than halved. Last year the company suffered losses of $550 million.
Borneo, which currently controls 23.8 percent stake in London-listed Bumi Plc, is struggling with its remaining debt worth $795 million from Standard Chartered Plc .
The firm hopes to reschedule up to $500 million of its debt, extending the payment period to seven years from five years previously, at the same interest rates, Ramlie said.
Borneo also plans to use $200 million it expects to receive in dividends from Bumi Plc this year, and plans divest a 20 percent stake in its AKT mine to help cover its repayments, Ramlie said.
In July Borneo agreed to double its stake in Bumi Plc to 47.6 percent in a deal worth $223 million, via Indonesian coal tycoon Samin Tan.
On top of Borneo's production and looming debt woes, it may also have difficulty supplying 2 million tonnes of coal it was planning to provide to the massive integrated steel mill being set up in a joint venture between Krakatau Steel and Korea's POSCO Chemtech Co Ltd in Cilegon, Indonesia.
"Next year we may only be able to supply 600 to 900 tonnes because the POSCO-Krakatau joint venture will not be fully operational," Borneo finance director Kenneth Allan said.
- Gaza toll passes 100; Israel to counter rockets 'with all power' |
- Female Yahoo executive sued for sexual harassment
- Ukraine says rebels will pay as missiles kill 23 soldiers |
- U.S. Navy maintains grounding order for F-35 fighter jets
- German suspect was in contact with State Dept not U.S. spies: officials