Bumi seeking strategic investors

PT Bumi Resources is seeking strategic investors to jointly operate its two coal mining companies PT Kaltim Prima Coal (KPC) and PT Arutmin following its decision to cancel a US$3.2 billion deal to buy entire stake in the two coal mining companies, Kompas reported on Tuesday.

"We will sell only 20 percent stake in KPC and Arutmin to strategic investors," the company's president director Ari S. Hudaya said in Jakarta on Monday. He said that there were at least three strategic investors willing to buy part of the companies' shares. But he refused to elaborate.

Hudaya said that the Bumi would sell part of its stake in KPC and Arutmin only to those who had commitment to add value to the two company's operation and their coal marketing networks.

"With such as a partnership, we hope we could increase our exports by between 10 percent to 15 percent a year," he added. At present, Bumi exports about nine percent of the two coal mining company's production in international market, and sells the remaining 91 percent in the domestic market.

Bumi Resources signed an agreement in March to sell its entire stake in the two companies for $3.2 billion to a consortium of local companies. But the company announced last week that it had canceled the deal due to a prolonged delay in the takeover settlement. (*)