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T Merukh Enterprises, a gold, copper and coal mining company, secured a minimum funding commitment of US$14 billion through a bank syndicate and international financial institutions, an executive says.

“Two US hedge funds have committed to disburse $7 billion each for the needs of our projects investments,” Merukh Enterprises president director and CEO Rudy Merukh said in statement.

Merukh Enterprises government and public relations manager Alexander Yopi told The Jakarta Post on Sunday that the company could not disclose the two US hedge funds in detail because they were still exclusive agreements.

“We would inform the media later on,” he said over the phone.

Yopi elaborated that the $14 billion in finance would be allocated for Merukh Enterprises mining project developments in Indonesia, particularly copper mining on Lembata Island in East Nusa Tenggara and gold mining in Pohwatu in Gorontalo province.

He elaborated that the company would also use a portion of the funds to complete the take over of Avocet Mining Plc’s 80 percent shares in gold mining company PT Avocet Bolaang Mongondow, the Penjom gold mine in Pahang, Malaysia, and all Avocet’s assets in Southeast Asia.

Avocet acquired 80 percent of PT Avocet Bolaang Mongondow from Newmont Mining Corp. in 2002. Its gold mine in North Lanut produced 47,580 ounces of gold in 2010, while according to Avocet’s website, the Penjom gold mine, Malaysia’s largest, produced 51,084 ounces of gold in 2010.

The company would also allocate funds to develop its oil wells in Texas as well as hotels and an office complex in Singapore, he added.

According to Yopi, Merukh Enterprises is seeking additional investments to fund its mining and oil projects.

“We are still continuing a road show in Hong Kong to open the possibility of more investments to support our projects,” he told the Post.

When asked about the total funds the firm would raise to finance the projects, Yopi said that it had yet to be determined, adding that the company would conduct road shows in Hong Kong because most of Merukh Enterprises’ partner companies reside in the territory.

“Some of our partners have shown interest in investing in the projects,” he said.

Yopi said he could not disclose the companies in detail and that none of the investors in Indonesia showed any interests in investing in Merukh Enterprises.

He added that the company presently owned one hotel in Singapore, Park Regis, and planned to acquire other hotels there. “The acquisition is in process.”

Merukh Enterprises was also seeking to acquire hotels in Ho Chi Minh, Vietnam, Yopi said.

Through PT Pukuafu Indah, Merukh Enterprises currently owns 17.8 percent of PT Newmont Nusa Tenggara after selling 2.2 percent to PT Indonesia Masbaga Investama in 2010. (msa)