Release: Bumi announces financing alternatives to utilize of its treasury shares
Tuesday, September 4 2007 - 12:18 AM WIB
Jakarta, September 3, 2007 -- PT Bumi Resources Tbk., Indonesia’s largest thermal coal mining company, announced that it is contemplating various financing alternatives to utilize 364,966,000 of its treasury shares.
These 364,966,000 treasury shares represent the remaining number of its treasury shares which were not allocated for the exercise of conversion rights under the terms and conditions of the US$300,000,000 Zero Coupon Guaranteed Convertible Bonds due 22 June 2012 which its wholly-owned finance subsidiary, Enercoal Resources Pte. Ltd., issued on June 28, 2007.
From time to time, Bumi Resources considers various capital raising options to finance its operations and for other purposes. Bumi Resources’decision whether to proceed with any particular financing arrangement depends on a number of factors, including market conditions, alternative capital raising options available to it and its funding needs at the time.
Bumi Resources’ coal subsidiaries, PT Kaltim Prima Coal and PT Arutmin are, by far, the largest thermal coal producers in and ranked second as the biggest thermal coal exporter globally with approximately 7.2 billion metric tonnes of combined coal reserves and resources as of December 2005. Additionally, PT Kaltim Prima Coal is the single largest thermal coal exporting mine in the world.
In 2006, Bumi Resources’ coal subsidiaries shipped approximately 50 MT of coal, of which 95% was sold in overseas markets-predominantly Asia, including Japan, Taiwan, South Korea, India and China followed by Europe and the Americas.
Bumi Resources expects to produce approximately 59 MT of coal in 2007, and expects to ship approximately 58 MT of coal in 2007, compared with approximately 50 MT in 2006-a projected increase of 16%. They have already sold approximately 28.3 MT between January and June in 2007.
The production and sales volume figures noted above include the Indonesian government’s entitlement of 13.5% under our coal contracts of work with the government. (end of release)