Bumi Resources may sell part of shares in KPC, Arutmin

JSX-listed mining group Bumi Resources is in talks with foreign bidders including Anglo American to sell part of its shares in Kalimantan mines , the Financial Times reported on Thursday.

The newspaper, citing unnamed sources, said a deal worth US$2 billion to $3 billion, including debt, could be announced within days. Sources said Bumi Resources was in talks with several investors from Europe, the United States and Canada.

Bumi Resources, owned by the family of Indonesian chief welfare minister Aburizal Bakrie has 100 percent stake in South Kalimantan coal miner PT. Arutmin Indonesia and 95 percent shares in East Kalimantan coal miner PT.Kaltim Prima Coal. The mines produce some 40 million tonnes of coal annually.

The company told the newspaper it had "no official knowledge of the sale of the two companies", and Anglo American had no comment.

"There is an active process going on and buyers have expressed interest. If everything goes to plan, there should be a resolution pretty soon," a person close to the talks said, according to the report.

Another report in local daily Koran tempo said that Bumi may use the proceed from the sale to buy stake in PLN's subsidiary Indonesia Power which plans to go public in the near future. Indonesia Power operates the 3,400-MW Suralaya coal-fired power plant in Banten province. (*)