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The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed today a loan agreement totaling USD24 million (JBIC portion) with Idemitsu Kosan Co., Ltd. (Idemitsu Kosan). The loan is cofinanced with The Mie Bank, Ltd., The Chiba Kogyo Bank, Ltd., and North Pacific Bank, Ltd., bringing the overall cofinancing amount to USD40 million.
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The loan is intended to provide financing for Idemitsu Kosan to acquire 30% shares of the Malinau coal mines located in the North Kalimantan province in Indonesia.
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The Malinau coal mines have an annual production capacity of 4 million tons of thermal coals used for generating electricity. The quality of the thermal coals, which have been distributed to Japan, is highly regarded especially by Japanese power companies. By acquiring the shares, Idemitsu Kosan plans to conclude the long-term purchase agreement for the thermal coals, purchase 30% of the thermal coals produced from the Malinau coal mines, and sell them to Japanese power companies. This project secures the long-term purchase rights of the thermal coals through the acquisition of coal mine interest. It is thereby expected to contribute to securing a stable supply of and a maintaining and increasing of the self-development ratio of mineral and energy resources to Japan.
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As Japan's policy-based financial institution, JBIC will continue to actively support the development and acquisition of mineral and energy resources by Japanese companies and financially assist the securing of steady mineral and energy supply for Japan, as well as the maintaining and increasing of self-development ratio, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
