AKAR provides purchase advances for affiliated companies
Wednesday, July 18 2012 - 12:51 AM WIB
PT Adikarsa Alam Resources (AKAR), wholly owned subsidiary of PT SMR Utama Tbk has recently stated to provide funds to cover the down payments for manganese purchases from affiliated companies PT TTS Makmur Resources (TTS) and PT Timor Makmur Resources (TMR).
In a filing to the Indonesian Stock Exchange, AKAR, TTS and TMR have signed the Manganese Trade Agreement on 25 June 2012, expecting the payment to help sustain both the manganese mine owner companies as well as supporting AKAR with manganese supply in the near future.
According to the agreement, the first stage of the payment, amounting to Rp68.50 billion and Rp65,54 billion as down payments for manganese purchases, be paid to TTS and TMR, respectively in successive installments starting on or before 29 June 2012 at 15 percent per year of guaranteed return.
The company also stated there's the possibility for AKAR to expand its business to manganese trading in relation to the increasing output of its subsidiaries.
Editing By Audy Zandry