Company type | Public |
---|---|
IDX: BRAU | |
ISIN | ID1000116502 |
Founded | 26 April 1983 |
Headquarters | Jakarta, Indonesia |
Key people | Bob Kamandanu, President Commissioner Amir Sambodo, President Director, Deswandhy Agusman, Vice President Commissioner |
Revenue | US$507 million (2012) [1] |
Website | www |
PT Berau Coal Energy Tbk is Indonesia's fifth largest coal producer. [1]
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 East Kalimantan. Production began in 1994. [2]
Berau Coal operate three active mines (Lati, Sambarata and Binungan) at a single site in East Kalimantan. Estimated resources of about 2.6 billion tons, with probable and proven reserves estimated at 512 million tons (mt), [3] lie within a single concession of around 118,400 hectares. [4]
All three mines [5] produce thermal coal, [6] using conventional open pit mining techniques, [2] primarily to supply the Chinese market. [1]
Berau Coal became part of Vallar plc, British financier Nathaniel Rothschild's £700m cash shell, in July 2010. [7]
In 2013, it was variously reported that $173 million had allegedly gone "missing" or that "mysteriously vanished" or that a withdrawal was "unauthorised" from Berau Coal under Rosan Roeslani's leadership. Roeslani disputed the claims. [8] [9] [10] [11] [12] [13]
As part of an effort to restructure and take control of the business, Rothschild offered to inject US$100 million into Berau Coal [14] and offered sign a restructuring support agreement with creditors in February 2015. [15]
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 of Berau. However, he failed to relinquish the position and refused to allow Asia Resource Minerals's chief financial officer, chief mining officer or his successor into the head office of Berau. For a while, executives acting on behalf of Rothschild only had limited access to Berau's accounting systems and bank account information. [16]
The Widjaja's Sinar Mas subsidiary company, Asia Coal Energy Ventures, spearheaded by the 33-year-old Fuganto Widjaja, together with Argyle Street Management Ltd., countered on 7 May 2015 with a cash offer and alternative recapitalisation plan involving a $150 million cash injection and a restructuring support agreement similar to the one offered by Rothschild in May. [14] In response Rothschild gave up his long battle for ARM and agreed to sell his 17.2% stake in June 2015. [17]
Rothschild's holding company later commented on the affair that "This will be our first and last investment in Indonesia’s coal sector" [18]
Defaults
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, [19] 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 [20] of scheme of arrangement / moratorium proceedings, [20] with terms which have been described as "frankly insulting" at a time when global coal prices had doubled. [21] [22] None of the schemes has succeeded. [23]
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. [24]
New York Court Case
In April 2019, following the default of two bonds worth about US$1 billion, the Widjaja family was taken to court in New York by investors in Berau coal, seeking damages of US$165M plus interest. Legal advisers for the plaintiffs, a New York hedge fund, claimed in court that many of the tactics employed by the Widjaja family during the APP restructuring were being deployed again. The Financial Times noted that the case came as "concerns build over Indonesia’s political and economic environment". [25]
Anglo American plc is a British multinational mining company with headquarters in London, England. It is the world's largest producer of platinum, with around 40% of world output, as well as being a major producer of diamonds, copper, nickel, iron ore, polyhalite and steelmaking coal. The company has operations in Africa, Asia, Australia, Europe, North America and South America.
Sinar Mas is one of the largest conglomerates in Indonesia. It was formed in 1938. It has numerous subsidiaries including Asia Pulp & Paper and palm oil producer PT SMART. The company also acquired Berau Coal Energy from Asia Resource Minerals PLC, a major mining group founded by Nathaniel Rothschild, in a takeover initiated by Fuganto Widjaja.
Asia Resource Minerals was a mining company listed on the London Stock Exchange.
Eka Tjipta Widjaja, born Oei Ek Tjong, was an Indonesian business magnate who founded the Sinar Mas Group, one of the largest conglomerates in Indonesia. After immigrating to Indonesia with his family when he was a child, Widjaja became a member of the PCC, traded copra in the mid-1950s, moved into the palm oil industry soon after, started a paper factory in the 1970s, and then entered financial services in the 1980s. At the time of his death, Sinar Mas had interests in paper, real estate, financial services, agribusiness, and telecom with holdings primarily in Indonesia, Singapore, Malaysia, and China, and Widjaja was listed by Forbes as the third-richest person in Indonesia with a net worth of approximately US$8.6 billion.
Nathaniel Philip Victor James Rothschild, 5th Baron Rothschild , is a British-born financier who settled in Switzerland and is a member of the Rothschild family. He is the chairman of Volex plc, a UK-listed manufacturer. He has a wide range of international business interests.
Paladin Energy Ltd is a Western Australian based uranium production company.
Jay Hambro is a British businessman in the mining, energy, steel and commodity sectors. He is the founder of Verdigris Strategic, a long-term investor and business transformation specialist.
PT United Tractors Tbk is an Indonesian company, subsidiary of PT Astra International Tbk ("Astra") that operates in six business lines, namely Construction Machinery, Mining Contractor, Coal Mining, Gold Mining, Construction Industry, and Energy. United Tractors has 20 branch offices, 32 site supports, 6 representative offices, and 54 support points as well as other service installations.
PT Bumi Resources Tbk is one of the largest mining companies in Indonesia and is structured as a holding company. In the 2012 Forbes Global 2000, Bumi Resources was ranked as the 1898th-largest public company in the world. It is the biggest producer of thermal coal in Indonesia and is majority owned by the Bakrie Group.
In 2019, the total energy production in Indonesia is 450.79 tonnes of oil equivalent, with a total primary energy supply of 231.14 tonnes of oil equivalent and electricity final consumption of 263.32 terawatt-hours. From 2000 to 2021, Indonesia's total energy supply increased by nearly 60%.
Mundra Ultra Mega Power Project or Mundra UMPP is a subbituminous coal-fired power plant in Tunda village at Mundra, Kutch district, Gujarat, India. It is the 3rd largest operational power plant in India. The coal for the power plant is imported primarily from Indonesia. The source of water for the power plant is sea water from Gulf of Kutch. The power plant is owned by Tata Power. The special purpose vehicle Coastal Gujarat Power Ltd (CGPL) was incorporated on 10 February 2006.
The Harita Group is an Indonesian business conglomerate owned and controlled by the Lim family. The group's core businesses are in the natural resources sector, which operates throughout Indonesia. Today, the Harita Group has businesses in nickel mining, ferronickel smelters, bauxite mining, alumina refineries, palm oil plantations, shipping, timber, coal and property. After the 2014 government regulations to ban exports of raw minerals, Harita Group and its partners built a $400 million ferronickel smelter and Indonesia's first alumina refinery for $900 million, both of which have been completed and in full operation since 2016. In December 2019, Glencore International became a partner of Harita Group via its share sale and rights issue of Indonesian-listed Cita Mineral. In June 2021, Harita commissioned the first HPAL plant in Indonesia, which produces Mixed Hydroxide Precipitate, a raw material for electric vehicle batteries. The project had an estimated cost of $1 billion. The current CEO of Harita Group is Lim Gunawan Hariyanto.
The Bakrie Group is an Indonesian conglomerate founded by Achmad Bakrie in 1942. It has interests across various industries including mining, oil and gas, property development, infrastructure, plantations, media and telecommunications. The group is one of the largest business groups in Indonesia, with 10 companies listed on the Indonesia Stock Exchange.
KAZ Minerals is a copper producer in Kazakhstan and Kyrgyzstan, focused on the mining of copper and the development of new copper mining projects in Kazakhstan and Kyrgyzstan.
Fuganto Widjaja is an Indonesian billionaire businessman.
Jinneng Holding Equipment Manufacturing Group Company Limited, formerly name Shanxi Jincheng Anthracite Mining Group Co., Ltd. (JAMG) is a Chinese state-owned coal mining conglomerate based in Jincheng, Shanxi. It was owned by the State-owned Assets Supervision and Administration Commission (SASAC) of Shanxi Provincial People's Government. JAMG was ranked 386th in 2016 Fortune Global 500. The company also known as Jin Coal Group in China, which "Jin" was the short name of both Jincheng and Shanxi Province, as both named after the ancient Jin. Jincheng was located in one of the 13 important coal mining sites of China, namely "Jin East", which fellow state-owned enterprise Yangquan Coal Industry Group and Lu'an Mining Industry Group were also located in "Jin East".
Gandi Sulistiyanto Soeherman is a businessperson, an Indonesian diplomat, and former Managing Director of Sinar Mas Group. He serves as the Indonesia Ambassador to South Korea.
Michael Widjaja, is an Indonesian businessman of Chinese descent, serving as the CEO of Sinar Mas Land Group as well as Vice President Director of PT Bumi Serpong Damai Tbk (BSDE). Michael was born in Surabaya, 9 July 1984. Michael Jackson Purwanto Widjaja is the thirdborn of Muktar Widjaja, thereby a grandson of tycoon Eka Tjipta Widjaja founder of Sinar Mas Group. Michael married Feiny Sabur at the age of 28 on 1 October 2012. He marks the third generation successor of the Sinar Mas.
Rosan Perkasa Roeslani is an Indonesian diplomat and businessman. He was Indonesian Ambassador to the United States. and briefly appointed by Indonesian President Joko Widodo as Vice Minister of State-owned Enterprise. He resigned from both positions in late 2023 to avoid potential conflict of interests as he was appointed to lead the presidential campaign team of Prabowo Subianto and Gibran Rakabuming Raka which he accomplished very successfully with a landslide 58.58% victory. He is one of three Indonesians who bought the Italian football club Inter Milan in 2015.
Arsjad Rasjid is an Indonesian businessman who is president director of the mining and energy firm Indika Energy. He also serves as commissioner in several other companies, and is currently chairman of the Indonesian Chamber of Commerce and Industry for the 2021–2026 term. In September 2023, he was appointed as chairman of the 2024 presidential bid of Ganjar Pranowo.