Bumi plans to buy stakes in Citra Palu and Freeport: Source
Thursday, March 3 2005 - 02:00 AM WIB
Publicly listed mining giant PT Bumi Resources Tbk is planning to buy stakes in gold mining companies PT Freeport Indonesia and PT Citra Palu Mineral to expand its business empire, the Bisnis Indonesia newspaper reported in its Thursday edition.
A source revealed to the Bisnis that Bumi has prepared this business expansion plan long time ago.
?As one of the biggest mining companies, it is natural if it embarks on expansion in order to get profit. That?s why, PT Bumi is making efforts to buy stake in PT Citra Palu Mineral, which has gold mining areas in Poboya-Paneki, near Palu in Central Sulawesi,? the source said recently.
According to the source, after succeeding in acquiring a stake in PT Citra Palu Mineral, PT Bumi is planning to buy shares in PT Freeport.
Newcrest Mining Group, one of the owners of PT Citra Palu, is in fact wanted to sell its stake in that company.
? The main intention to sell its stake (in PT Citra Palu) is because the mining area Poboya-Paneki is located in the protected forest of Tahura Poboya conservation park,? the source said.
Meanwhile, the executives of PT Bumi are unable to confirm these planned acquisitions.
Bumi?s commissioner Kusumo AM claimed the boards of the commissioners were now aware about the plan.
?We don?t know about this matter yet, because it is the affairs of the board of directors," Kusumo said.
Bumi?s director of finance Eddie C. Soebari said that he is unable to confirm the company?s plan. (*)