Bumi Says Coal Output From Berau Unit Climbs 27%; Prices Decline
Bumi Plc (BUMI), the Indonesian coal miner trying to recover $201 million in missing funds, said output from one of two investments in the Asian nation rose 27 percent.
Production from PT Berau Coal Energy, in which it owns 85 percent, was 7.3 million metric tons in the four months through April, London-based Bumi said today in a statement. The company didn’t disclose output from PT Bumi Resources in which it owns 29 percent, and a spokesman couldn’t immediately comment.
The average sale price for coal from Berau of $63.10 a ton was 19 percent lower than a year earlier, Bumi said. The company reported a net loss of $2.3 billion last year after taking an impairment charge of $815 million on its Berau holding and $1.4 billion on the value of its stake in PT Bumi.
Berau is on schedule to meet its 2013 production target of 23 million tons this year, Bumi said today.
Bumi has been at the center of a battle for control between co-founders Nathaniel Rothschild, scion of a centuries-old British banking dynasty, and Indonesia’s Bakrie family since the $3 billion deal that brought them together started to sour in late 2011. Bumi and the Bakries announced a deal to unwind their investment in October.
The Bakries proposed exchanging their 23.8 percent of Bumi Plc for 29.2 percent of PT Bumi in a cash-and-share-swap deal, leaving Bumi Plc in control of Berau Coal.
According to the terms of the original deal the cash component was $278 million to buy PT Bumi stock at 680 rupiah a share. The shares rose as much as 5.9 percent to 540 rupiah in Jakarta today. Bumi stockholders were previously scheduled to vote on the deal at today’s annual general meeting in London.
The Bakrie Group said in a statement yesterday that it had the full amount of funds available to complete the deal and was waiting to hear from the board of Bumi on “how they wish to proceed.”
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