The coal is from west Kalimantan, the value between usd5m per shipment, have 1 year contract, the buyer from Korea will issue at sight LC with CIF term.
We have company at Indonesia (PT) and Labuan offshore Malaysia (Limited). Our main business activity is trading. For coal business, we have good end supplier at Kalimantan and Sumatra we also have a potential buyer from Hong Kong, India and Korea, most payment from buyer is irrevocable letter of credit at sight. Each buyer looking for 50,000mt per month minimum and up to 100,000 mt every each buyer. We also have offer the coal concession but need big money to buy the area and operation facility.
We also have contact with our consultant which can help us by issuing back to back LC or usance LC, so we can arrange our buyer issue the at sight LC to our consultant and they issue usance LC but cannot SBLC. At Indonesia also we cannot get loan by usance LC, that why we are looking for lender can give us loan against at sight LC, usance LC or you can issue SBLC. We spoke to our banker like BUKOPIN bank at Banda Aceh, the bank agree to give us loan by SBLC at a collateral, if possible also if we can lease SBLC, but we don’t want bank know that instrument is lease.
Some problem also the bank will not issue a conditional letter to show to funder, and if the draw down happened we cannot transfer direct from Bukopin bank to outside, we prefer we transfer local or we do transfer to our another difference bank in our account and we transfer out. The Bukopin Bank give us facility up to usd100 million by stages, example usd10, 20, 20 and 50m.the draw down between 10 banking days. Project we submitted is coal trading and coal mine, iron ore trading and iron ore mining located at Aceh.
If the lender cannot issue SBLC also we also try to fine which lender can issue mt103/23 to some provider which stated will pay within 14 banking days so after our draw down within 10 banking days we can pay direct to provider and cancel the mt103/23 or we transfer to lender with amount and plus profit and the mt103/23 is release at the provider.
Bukopin bank which is gives us facility against SBLC. Most facility is over draft 60% trade line 40%.bank give us loan against sblc is depend on maturity SBLC. All our share holder and director are clean and clear, no black list person.