Merukh in $10b Swap of Ore for Chinese Airplanes

By : webadmin | on 9:18 PM May 18, 2010
Category : Archive

Reva Sasistiya

Mining company PT Merukh Enterprises is diversifying into aviation and shipping by effectively trading millions of tons of metals for airplanes and ships in a transaction worth $10 billion.

Owned by politician turned mining magnate Yusuf Merukh, the company on Friday signed a memorandum of understanding with China’s state-owned airplane producer Avic International Holding to supply Merukh with a total of 60 airplanes and ships worth $10 billion, Merukh Enterprises president director Rudy Merukh said on Tuesday.

Under the agreement, Merukh will supply Avic with 50 million tons of coal, nickel and copper over 30 years, beginning this year, Rudy said.

Merukh will acquire from Avic: 24 Y12IV airplanes, six H425 helicopters, nine Chinese ARJ21 jets, six Boeing fixed wing planes, six ships with carrying capacities of 8,000 tons to 15,000 tons, nine Panamax coal-carrying vehicles, as well as hotels and office towers in Beijing and Shanghai worth a combined $300 million.

Last November, Merukh Enterprises bought two airlines — PT Dirgantara Air Services and PT Sabang Merauke Air Charter — for $50 million and $20 million respectively.

Selo Selvieana, Merukh’s negotiation team leader, said the company has also agreed to form joint ventures with Avic for several mining projects, including a coal mine in Aceh, an iron ore mine in Sumba, a gold mine in Kutai, an oil block in Rote and a copper mine in Lembata.

The joint ventures would likely be managed by Merukh, Selo said.

Merukh Enterprises currently owns a 20 percent stake in PT Newmont Nusa Tenggara, which controls the massive Batu Hijau gold and copper mine in Sumbawa, as well as gold copper and coal mines throughout Indonesia.

Yusuf Merukh, has been nicknamed the “King of Mining,” due to the more than 500 mining concessions in his portfolio.

 
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