The CEO of the PT Diamond Energy Resources Indonesia, agus Halim, a wholly owned subsidiary of an Australian based mining company, was considering whether to put money into a fresh coal mine near East Kalimantan, Indonesia. His adviser had prepared a preliminary acquisition plan which includes a capital funds with verified mineable surface coal reserves and planned coal prices.
This acquisition position itself was an important player in the coal export market in Indonesia and would add to the coal reserves of Diamond. Agus required to ensure this investment would create value for the company before getting the green light from his parent business. He also needed to convince his local banker to supply the necessary funding in a challenging environment with very volatile commodity costs.
PUBLICATION DATE: January 01, 2016 PRODUCT #: TB0435-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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