ICBC provides $80 million loan for Taliabu Island Iron Ore Project

Project narrative

In 2018, ICBC and PT Servindo Jaya Utama — a special purpose vehicle and wholly-owned subsidiary of Salim Group — signed an $80 million loan agreement for the Taliabu Iron Ore Project. The borrower was expected to use the proceeds of the loan to finance a commercial contract that it signed with Metallurgical Corporation of China (MCC) on September 9, 2015. The project involved the construction of a high-grade iron ore processing mill on Taliabu Island in North Maluku. The project scope included the installation of a long-distance belt conveyor transportation system and concentration and tailing system, installation of mechanical equipment, pipeline and electric equipment, single and linkage commission, no-load and load test, etc. Upon completion, the mill was expected to produce 35 million tons of iron ore annually. Metallurgical Corporation of China (MCC) was the contractor responsible the implementation of the project. Construction started on January 18, 2016, and the project was completed on November 28, 2017.