Bumi seeks to raise new debts

Indonesian coal mining house PT Bumi Resources is seeking to raise US$600 million to refinance debt at its two coal mining units, a senior company official was quoted by agency Thursday.

Finance director Eddie Sobari said options to raise the funds include issuing rights or new shares, issuing international bonds, or seeking bank loans with cheaper rates.

He said the company hasn't made its decision yet, "but we hope that we can choose the best option and complete our plan to refinance the debt by the second quarter of this year."

Bumi's wholly owned coal mining unit PT Kaltim Prima Coal, which it bought from Rio Tinto Plc. (RTP) and BP Plc (BP) for $500 million last year, currently has a total debt of $400 million, he said.

Bumi's other coal mining unit PT Arutmin, has outstanding debt around $200 million.

Bumi Resources, which is part of the debt-ridden Bakrie Group, owns 80% of Arutmin, which it purchased from BHP Billiton in 2001.(*)