The news came after Bumi PLC announced it had struck a deal with the Bakrie Group regarding its 29% stake in another Indonesian coal miner, Bumi Resources.
It also comes ahead of a shareholder meeting on February 21, called by Bumi PLC co-founder and former director Nathaniel Rothschild to replace all but two of the existing Bumi PLC board.
The Indonesian coal miner received thermal coal prices down 31% on the same period last year.
But the company mined 15% more coal – 5.9 million tonnes – in the quarter than it did in the same period last year and sold 30% more – 6.5Mt – than in the same period last year.
Production cost of sales were $36.1 per tonne in the quarter, down 19% on the same period last year.
That was helped by a reduced stripping ratio, from 9.4 bench cubic metres per tonne to 7.6bcm/t.
Berau is the jewel in Bumi PLC’s holdings.
The British company is in the process of rationalising its Indonesian holdings and yesterday signed a heads of terms agreement regarding the separation from the Bakrie Group and PT Bumi Resources.
Bumi PLC holds a 29% stake in Bumi Resources. Last year it launched an investigation into the Indonesian company over “financial irregularities”
Under that HoT:
- the Bakrie entities will cancel their indirect holding of 23.8% of Bumi PLC in exchange for the transfer to the Bakrie Group of 10.3% of the shares in Bumi Resources
- Bumi PLC will sell the Bakrie Group the remaining 18.9% of Bumi Resources it holds for $278 million in cash
- the Bakrie Group will be required to place $278 million in escrow wihin five business days of signing a definitive agreement.
According to Bumi PLC, that last point will ensure the funds required to complete the transaction will be in place well before the general meeting of the company needed to approve the transaction.
The transaction is subject to Bumi PLC shareholders’ approval.
