Bumi Mineral to allocate $581 million for capital expenditure

PT Bumi Resources Minerals (BRM), a non-coal asset unit owned by Indonesia's biggest coal miner PT Bumi Resources, will spend up to US$581 million in capital expenditure to develop mining operations of its subsidiaries within the next three years.

BRM?s finance director Yuanita Rohali said in Jakarta on Monday that about $240 million of the total capital expenditures would be spent in the first year to develop the mining operation of its subsidiary Dairi Prima Mineral (DPM) and the mining operations of another subsidiary PT Bumi Mauritania

In the second year, BRM would spend up to $275 million for the development of Dairi Prima?s copper and zinc mines. ?At the end of 2012, the company is expected to begin production,? Yuanita told reporters. She said that the remaining $68 million would be spent in the third year for BRM? s other subsidiaries.

Indonesia?s biggest coal miner Bumi Resources, early this year, consolidated its non-coal assets into BRM to manage its gold, copper, zinc, lead and iron ore interests in Indonesia and Africa.

BRM?s subsidiaries include Bumi Mauritania with a 60 percent stake, Newmont Nusa Tenggara (24 percent), Konblo Bumi Inc (94.1 percent), Bumi Resources Japan Co. Ltd (100 percent), PT Citra Palu Minerals (96.7 percent) and PT Gorontalo Minerals ( 80 percent).

BRM will sell 22.53 percent stake of its enlarged capital on an IPO later this month to raise part of the funds needed for the development of the company?s non-coal mines. (giok)