ARCHIVE

Battle mars Bumi results

A LONDON-listed coal miner embroiled in a stoush with one of its Indonesian investments has had i...

Noel Dyson

This article is 12 years old. Images might not display.

Bumi PLC requested an audit of PT Bumi Resources – a company it has a 29.2% stake in – because of concerns over financial irregularities at the Indonesian operation.

As a result of the audit, Bumi PLC has not been able to include PT Bumi Resources’ figures in its filing.

Bumi PLC announced the independent investigation it commissioned into PT Bumi Resources was ongoing.

It could, however, report on the results from Berau Coal, a company it has an 85% stake in.

Berau reported it had mined 5.5 million tonnes of coal for the third quarter, up 4% on the same period last year.

The operations were impacted by a higher stripping ratio – 10.1 bank cubic metres per tonne – which added to costs.

However, it received lower prices for that coal – down 17% quarter on quarter to $US71.3 per tonne.

Indeed there was further decline of the price in the second half of the third quarter. The price for a tonne of sub-bituminous thermal coal fell below $70.

Berau is forecast to mine 21Mt for 2012.

Bumi PLC also said it was still mulling over a proposal by shareholder the Bakrie Group to cancel its indirect holding of roughly 23.8% in Bumi PLC in exchange for an equivalent value of PT Bumi Resources shares.

It would represent about 10.3% of the total outstanding share capital of PT Bumi Resources as held through Bumi PLC.

The Bakrie Group also has made a conditional proposal to buy back the remaining 18.9% shareholding in PT Bumi Resources and a further conditional proposal to make a cash offer within the next six months for Bumi PLC’s 85% stake in Berau.

The Bumi PLC board has appointed the Rothschild Group to evaluate each of those proposals on their merits.

During October, Bumi PLC founder and non-executive director Nathaniel Rothschild stepped down from the Bumi board.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence: Automation and Digitalisation Report 2024

Exclusive research for Mining Magazine Intelligence Automation and Digitalisation Report 2024 shows mining companies are embracing cutting-edge tech

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets