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.
