October 9, 2013 / 10:34 AM / 4 years ago

China's CIC to convert some debt into stakes in Bumi mining group

SINGAPORE, Oct 9 (Reuters) - Indonesia's PT Bumi Resources said on Wednesday China's sovereign wealth fund, China Investment Corp (CIC), has agreed to convert part of an outstanding $1.3 billion loan into stakes in the miner's PT Bumi Resources Minerals unit, its coal mines and a small stake in Bumi Resources itself.

"PT Bumi Resources Tbk announces that it has entered into an agreement to settle $1.3 billion principal amount of its remaining debt with China Investment Corp," it said in a statement.

The latest move follows a last-minute $425 million debt extension by the coal mining group, controlled by the politically-connected Bakrie family, earlier this month.

Bumi Resources is Indonesia's largest thermal coal producer and one of the three largest thermal coal exporters globally. Its main assets are a 65 percent stake in PT Kaltim Prima Coal and a 70 percent stake in PT Arutmin.

Bumi took a $1.9 billion loan from CIC in 2009, $600 million of which was repaid in 2011.

Reporting by Saeed Azhar and Prakash Chakravarti of IFR/LPC; Editing by Matt Driskill

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