Berau Coal Energy
|This article is part of the CoalSwarm coverage of Indonesia and coal|
PT Berau Coal Energy Tbk is Indonesia's fifth largest coal producer.
Berau Coal Energy was created in 1983, following the signing of a contract with the Indonesian government as sole mining contractor within the Berau regency of North Kalimantan. Production began in 1994.
Berau Coal operate three active mines--Lati, Sambarata, and Binungan--at a single site in North Kalimantan. Estimated resources of about 2.6 billion tons, with probable and proven reserves estimated at 512 million tons (mt), lie within a single concession of around 118,400 hectares.
Berau Coal was once part of the assets of Asia Resource Minerals, the renamed Bumi Plc, which Vallar bought a stake in July 2010.
After a series of internal disputes, board room battles and court inquiries into “financial irregularities” at Berau Coal, Amir Sambodo agreed to resign in March 2015 as president director of Berau. However, he failed to relinquish the position and refused to allow Asia Resource’s chief financial officer, chief mining officer or his successor into the head office of Berau. For a while, Bumi executives acting on behalf of Rothschild only had limited access to Berau’s accounting systems and bank account information.
Berau Capital Resources Pte issued US$450 million worth of 12.5% guaranteed senior secured notes, in 2015. PT Berau Coal Energy also issued US$500 million worth of 7.25% guaranteed senior notes in 2017. While these were to be restructured under an agreement with bondholders, the company later did not proceed with the deal. Both the 2015 and 2017 notes are currently in default. Since July 2015, the Berau Group has brought 4 separate rounds of scheme of arrangement / moratorium proceedings, with terms which have been described as “frankly insulting” at a time when global coal prices had doubled.
Suspension from the IDX
Berau Coal Energy has been delisted from the IDX since 16 November 2017, following multiple suspensions over the course of the last 2 years and failure to submit timely annual reports and financial statements since 2014.
- Indonesian Coal Book, 2004-2005, P52-55 Retrieved February 2015
- Moody's Investors Service "Berau's proposed maturity extension of 2015 notes likely a distressed exchange" Retrieved February 2015
- The Jakarta Post, Sept 2013, "Berau to invest $300m to boost production" Retrieved February 2015
- "Berau Coal will be delisted on November 16". IDN Financials. 18 October 2017.