PT Borneo Lumbung Energi & Metal Tbk: On the Road to Recovery

PT Borneo Lumbung Energi & Metal Tbk: On the Road to Recovery


PT Borneo Lumbung Energi & Metal Tbk: On the Road to Recovery
by : Sando Sasako

Jakarta, 22 July 2016 19:08:19
Last Update: 14 August 2016 21:49:18
Last Upload: 14 August 2016 20:37:32


This book is available on a print-on-demand basis.

The flip-book version is for browsing demo purpose only and available only to be served in Greater Jakarta, Indonesia.


You may reach the publisher for demo request, inquiries, and purchase order from this number:
+62 851 0518 7118 or +62 21 4027 8375.

Get the pdf file with a lowered quality printing and paper size on
http://bit.ly/2bU9DiP


Foreword

In less than 2 months before Linc Energy Ltd filed for voluntary administration on 30 March 2016, Linc Energy had signed an MOU with at least 2 Indonesian companies regarding the UCG projects in Indonesia, that is 18 February 2016. However, on 23 May 2016, Linc Energy just had confirmed its status as a liquidating company, but not its US subsidiaries as they had filed for relief and seek bankruptcy protection (Chapter 11) on 29 May 2016.

The MOUs were the one of many heydays that UCG projects have been accepted worldwide as an alternative to mine the primary energy coal in terms of syngas. Scotland, Australia, Vancouver, and Nova Scotia were the few names that had been offering and approving coal companies to try and implement the UCG technologies.

As coal companies can never be aware of what beneath the earth surface, they failed to convince that they already have the required technologies and resources to protect the environment. They are doomed to fail before it’s begun.

As a consequences, lenders and creditors participating as investors in the proposed UCG projects surely stop funding and began to demand a payback. Even worst, they wanted to liquidate their assets invested in the troubled coal companies.

Some companies may weather the storm and sail unscathedly. Some others may have to sink and scuttle their ships to the bottom of ocean floor. Nevertheless, what may have saved the ships from sinking is the captain and skipper of the ship. Should the captain know exactly the weights and worth of the ship, the cargoes, and the crews, they shall bargain to salvage what’s worth saving.

Indeed, in the beginning, it hurts. A lot. To many parties. Corporate retrenchment, layoffs, shrinking assets are some desperate measures to be taken in desperate times. These inevitable corporate actions are unload some burdens in preserving cashflows and contain cash drains. Some assets are indeed liabilities. Especially when the assets are failing to perform and generate revenues that profitable enough to cover the incurred and embedded expenses.

Jakarta, 31 August 2016
Sando Sasako

Email: sandosako @ yahoo.com
Mobile: +62 812 8056 516


Contents

Foreword iii

Contents v
List of Tables ix
List of Figures x

Global Trends in Energy Industry 1

Global Coal Trends 2

Energy Business in Indonesia in a brief 3

Coal 5

Borneo Lumbung Energi & Metal 11
Has Samin Tan lost his bets in Bumi plc and BORN? 11
The Company Named Borneo Lumbung Energi 12
The Road to Highly Indebted BORN 14
The Awkward and Ugliness in 2011 17
The Teasing Dreams and Illusion of Interest in Bumi plc 21
The $1b Debt Traps for Lending Stanchart and Borrowing BORN 23
The End of Bumi plc 25
Tony Blair 26
REDD+ 27
Heart of Borneo 28
Samin Tan 29
Recapital Advisors 30
Borneo Lumbung Energi and Energi Megah Persada 31

Borneo Lumbung Energi & Metal: The Brief Profile 33
Shareholders 33
Management 34
Related Parties and Financial Transactions 35
Third Parties & Transaction Types 37
IPO Proceeds 39
Financials 40
Surviving on Debt Burdens, Theoretically 40
The Walk-Through 43
The Road So Far 44
Troubles with the Crown Jewel Holding the Bargain Chip 45

Asmin Koalindo Tuhup 48
AKT in Brief, Legally 50
Concession Area 51
Coal Deposits 52
Mining Operations 53
Production 54
Product Specifications 55
Coal 101 55
Coking Coal Grades 56
Infrastructure 57
Transportation 58
Marketing & Sales 60
Customers 60
Management 61
Shareholders 61
Financials 61


References 63


Directory of Coal Mining Companies in Indonesia 67

Abadi Batubara Cemerlang 67
Abadi Coal Cemerlang 67
Aceh Resources and Mineral 67
Aceh Resources and Mineral Core 67
Adaro Indonesia 67
Adimas Baturaja Cemerlang 67
Allied Indo Coal , PT 68
Andhika Mutiara Etam 68
Andhika Mutiara Lestari 68
Andhika Mutiara Sejahtera 68
Antang Gunung Meratus 68
Anugerah Jatimulia 69
Anugerah Jatimulya 69
Arutmin Indonesia 69
Asmin Bara Bronang 69
Asmin Bara Jaan 69
Asmin Koalindo Tuhup 69
Astaka Dodol 70
Bahari Cakrawala Sebuku 70
Bangun Banua Persada Kalimantan 70
Bara Mutiara Prima 70
Bara Pramulya Abadi 71
Bara Sentosa Lestari 71
Bara Utama Unggul 71
Baradinamika Mudasukses 71
Baramarta, PD 71
Baramarta 71
Baramulti Sukses Sarana 72
Baramulti Suksessartana 72
Baramutiara Prima 72
Barasentosa Lestari 72
Batu Alam Selaras 72
Batubara Duaribu Abadi, PT 72
Batubara Selaras Sapta, PT 72
Baturona Adimulya 73
Benakat Energi 73
Benakat Energy 73
Bentala Coal Mining 73
Berau Coal 73
Bharinto Ekatama 73
Bima Duta Batubara Sakti 74
Borneo Bhaktibara Utama 74
Borneo Indobara 74
Buana Bara Utama 74
Bukit Baiduri Enterprises 74
Bukit Sunur 75
Bumi Laksana Perkasa 75
Bumi Panen Sukses 75
Bumi Sukse Mandiri 75
Buntok Perdana Coal Mining 75
Calicari 75
Coal Duaribu Abadi 75
Coal Selaras Sapta 76
Danau Mas Hitam 76
Daya Lapan 76
Delma Mining Corporation 76
Dhamar Tejokencono 76
Dharma Puspita Mining 76
Dutaputra Tanaratama 77
Ekasatya Yanatama 77
Energi Batubara Sumatera 77
Energy Batubara Sumatra 77
Fajar Bumi Sakti 77
Firman Ketaun Perkasa 77
Galicari 77
General Sakti Kreasindo 78
Generalindo Prima Coal 78
Gunung Bayan Pratama 78
Gunung Bayan Pratama Coal 78
Hulubalang Inti Bumi 78
Indexim Coalindo 78
Indominco Mandiri 79
Insani Bara Perkasa 79
Interex Sacra Raya 79
Intitirta Prima Sakti 79
Intitirta Primasakti 80
Jorong Barutama Greston 80
Juloi Coal 80
Kadya Caraka Mulia 80
Kalimantan Energi Lestari 80
Kalteng Coal 81
Kaltim Prima Coal 81
Kartika Selabumi Mining 81
Karunia Poladaya Bumi 81
Karya Bumi Baratama 81
Kendilo Coal Indonesia 82
BHP Kendilo Coal Indonesia 82
Kideco Jaya Agung 82
Kitadin 82
Kodeco Horna Mandiri 82
Kurnia Sarana Lestari 82
Kutai Kertanegara Prima Coal 82
Lahai Coal 83
Lanna Harita Indonesia 83
Lianganggang Cemerlang 83
Mahakam Sumber Jaya 83
Mandiri Intiperkasa 83
Mantimin Coal Mining 84
Marunda Graha Mineral 84
Marunda Grahamineral 84
Maruwai Coal 84
Maruai Coal 84
Meulaboh Energitama 84
Meullaboho Energitama 85
Mitrajaya Timuragung 85
Multi Harapan Utama 85
Multi Tambangjaya Utama 85
Nusa Minera Utama 85
Nusantara Termal Coal (D/A Nusantara Thai Coal) 86
Nusantara Thai Coal 86
Pari Coal 86
Pendopo Energi Coal 86
Pendopo Energy Batubara 86
Perkasa Inakakerta 86
Persada Permata Mulya 87
Persada Permata Mulia 87
Pesona Khatulistiwa Nusantara 87
Pinang Jaya Sarana Bara 87
Pinangjaya Sarana Bara 87
Ramdany Coal Mining 87
Ratah Coal 87
Restubara Karya Pratama 88
Riau Bara Harum 88
Salamindo Coalindo 88
Salamindo Pahala 88
Santan Coal 88
Santan Batubara 88
Sarwa Sembada Karya Bumi 88
Selatan Selabara 89
Selo Argodedali 89
Selo Argokencono Sakti 89
Senamas Energindo Mulya 89
Senamas Energindo Mulia 89
Sinar Benua Prima 90
Sinarindo Barakarya 90
Singlurus Pratama 90
Solok Bara Adipratama 90
Sumber Barito Coal 90
Sumber Kurnia Buana 91
Suprabari Mapanindo Mineral 91
Tambang Damai 91
Tanito Harum 91
Tanjung Alam Jaya 92
Tanjung Alam Raya 92
Taraco Mining 92
Teguh Persada Coal 92
Teguh Reksa Daya 92
Teguh Sinar Abadi 92
Tempayang Cemerlang 93
Timah Batubara Utama 93
Torah Antareja Mining 93
Trimarta Coal Perkasa 93
Trimata Buana 93
Trimata Benua 93
Trimata Coal Perkasa 94
Trubaindo Coal Mining 94
Wadung Mas Tambang Mulia 94
Wadungmas Tambang Mulia 94
Wahana Baratama Mining 94
Whirakaneo Coalindo 94
Whiratama Bina Perkasa 94
Yamabhumi Palaka 95


List of Tables

Table 1 – Coal reserves in Indonesia, 2014 (million ton) 6
Table 2 – Coal supply in Indonesia, 2000-2014 7
Table 3 – Existing coal terminals in Indonesia 8
Table 4 – The most vital financial figures of PT Borneo Lumbung Energi & Metal Tbk, 2006-2014q3 14
Table 5 – BORN’s debts by signing dates and terms, 2005-2010 16
Table 6 – BORN’s loans, 2007q4 -2012q1 17
Table 7 – Underwriters at BORN’s IPO 18
Table 8 – Corporate actions of Bakrie & Brothers regarding Bumi plc and BORN, late 2011 19
Table 9 – BORN’s IPO proceeds: Planned vs Reported in 2012 Annual Report (IDR mn) 19
Table 10 – Subsidiaries of Bumi plc, June 2012 22
Table 11 – ARMS company financials, 2011-2014 £(M) 26
Table 12 – BORN’s Shareholders, March 2006 – Sept. 2014 (shares) 33
Table 13 – Trading suspension dates of BORN’s stock in IDX, 20130701-20160801 33
Table 14 – BORN’s Board of Commissioners, Dec. 2007 – Sept. 2014 34
Table 15 – BORN’s Board of Directors, Dec. 2007 – Sept. 2014 34
Table 16 – Corporate Officers in BORN group of companies, 2010 35
Table 17 – Related companies of BORN and transaction types, 2011-201409 (US$) 35
Table 18 – Related companies of BORN and transaction types, 2007-2011 (IDR mn) 37
Table 19 – Third parties of BORN 37
Table 20 – BORN’s IPO underwriting fees detailed 39
Table 21 – BORN’s IPO proceeds: Planned vs Reported in 2012 Annual Report (IDR mn) 39
Table 22 – BORN’s outstanding loans, 20100630 40
Table 23 – The most vital financial figures of PT Borneo Lumbung Energi & Metal Tbk, 2006-2014q3 40
Table 24 – The financial structure of BORN (share of liabilities components to assets), 2009-2014q3 41
Table 25 – Coal mineable reserves of BORN, March 2013 (mt) 52
Table 26 – Coal resources of BORN, March 2013 (mt) 52
Table 27 – BORN’s coal deposits in Kohong and Telakong blocks, 30 June 2010 (mt) 52
Table 28 – BORN’s performance in coal productions, sales, and price, 2007-2013 54
Table 29 – Tuhup coal product specification, 30 June 2010 55
Table 30 – Grades of coking coal 57
Table 31 – Utilisation of installed capacity of BORN, 2007-2010H1 57
Table 32 – Third parties contracted in relation to barging and loading in ISP 59
Table 33 – Coal sales by marketers, 2011-2012 ($) 60
Table 34 – BORN sales by country, 2009-2013 60
Table 35 – Management Boards of Asmindo Koalindo Tuhup, 1 Sept. 2010 61
Table 36 – Changes in AKT shareholders, 1993 – 20091220 61
Table 37 – The financials of AKT acquisition in 2008 and 2012 62
Table 38 – The financials of AKT, 2007 – 2010H1 ($) 62


List of Figures

Figure 1 – Gasification-based system concepts 5
Figure 2 – Gasification chemistry 5
Figure 3 – Coal distribution in Indonesia by calory class, 2014 6
Figure 4 – Supply and export of Indonesian coal, 1997-2014 7
Figure 5 – Export share over coal production in top producing countries 7
Figure 6 – Coal seaports in Indonesia, 2015 9
Figure 7 – UK banks involvement in Indonesian coal companies 10
Figure 8 – Share price of Vallar plc, Bumi plc, and Asia Resource Minerals plc, 9 July 2010 – 10 August 2015 11
Figure 9 – The owners of BLE 13
Figure 10 – The net debt maturities of PT Borneo Lumbung Energi & Metal Tbk, 2012q1 14
Figure 11 – The debt burdens of PT Borneo Lumbung Energi & Metal Tbk, 2012q1 14
Figure 12 – The flows of debts and stakes within companies related with PT Borneo Lumbung Energi & Metal Tbk (BORN), Nov.2010 15
Figure 13 – The interests of BNBR and LHHL in Bumi plc, December 2011 20
Figure 14 – The interests of BORN and Samin Tan in Bumi plc, June 2012 21
Figure 15 – Bumi plc related companies, from shareholders to subsidiaries, June 2012 22
Figure 16 – The interests of BORN and Samin Tan in Bumi plc, prior to March 2014 24
Figure 17 – Heart of Borneo: Three countries, One conservation vision 28
Figure 18 – Transfers of $15m loan of AKT 36
Figure 19 – Transfers of $50m loan of BMS 36
Figure 20 – Transfers of $75m loan of BORN 36
Figure 21 – Transfer of advance and receivable of ETU in BMS and BORN to REM 36
Figure 22 – Classification of asset structure, financial structure, and capital structure 41
Figure 23 – AKT’s coal deposit, 200511-201109 48
Figure 24 – BORN’s coal specification, worldwide comparation 48
Figure 25 – Indonesian coal producers by mine sites 49
Figure 26 – Sea access of AKT as BORN’s asset 50
Figure 27 – The site map of Muara Tuhup and Damparan in Central Kalimantan 51
Figure 28 – Mining activities cycle of AKT 53
Figure 29 – BORN monthly production, Oct.2008 – June 2010 (000 ton) 54
Figure 30 – Coal classification by energy content 56
Figure 31 – Bulk carriers compared by size, from Handysize to Capesize 58


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