Bumi Minerals to seek IDR1.8 trillion

JAKARTA: After raising IDR2.95 trillion from its initial public offering (IPO), PT Bumi Resources Minerals Tbk plans to seek an additional fund of IDR1.88 trillion next year. Financial Director of Bumi Minerals Yuanita Rohali revealed the external funding
News Editor | 10 Desember 2010 03:13 WIB

JAKARTA: After raising IDR2.95 trillion from its initial public offering (IPO), PT Bumi Resources Minerals Tbk plans to seek an additional fund of IDR1.88 trillion next year. Financial Director of Bumi Minerals Yuanita Rohali revealed the external funding was needed to build mining infrastructures in the Dairi Mineral project, which is targeted to start production in 2012."We are planning to seek external funding next year to finance construction projects in Dairi and Mauritania. We are still reviewing several funding options," she said yesterday.At the moment, four foreign banks are interested in lending funds. Moreover, six potential strategic partners and three mineral mining material traders are also interested in Bumi. So far, the company has spent US$105 million on subsidiary PT Gorontalo Mineral and US$80 million on another subsidiary Citra Palu Minerals.Since the sounding for financing from external parties had not yet been finished, Yuanita declined to expose the identities of the parties. "We are bound with the confidentiality agreement," she said.Bumi Minerals is a mineral mining company with six production bases, namely gold, copper, black timbale/tin, zinc, iron ore, diamond, and other precious minerals. In the meantime, at the trading opening yesterday, the company once found its share (BRMS) price reaching its record high of IDR820. However, it later closed at IDR700 per share, up 10.24% from the initial share price of IDR635 per share.Executive Director of Investment Bank at PT Danatama Makmur Vicky Ganda Saputra disclosed domestic and foreign investors were interested in the share. However, Vicky didn't inform in details about the percentage of IPO shares controlled by foreign investors. PT Danatama Makmur and PT Nomura Indonesia are the underwriters to the IPO and are assisted by three selling agents, namely Credit Suisse, JP Morgan, and Nomura International.After the IPO and mandatory convertible notes (MCN) conversion and prior to the warrant conversion, the shareholders are PT Bumi Resources Tbk (BUMI, 77.47%), PT Lumbung Capital (0.01%), and the public (12.90%).Investor Relation of Bumi Minerals Herwin Hidayat stated the company would raise at least IDR3.7 trillion from the capital market, namely from the IPO and the conversion of warrant at IDR700 per unit."The warrant will be a sweetener for investors. The warrant will be converted at a strike price of IDR700 per unit, leading Bumi Minerals to raise a total fund of up to IDR3.7 trillion," he said.Dispute over divestiture of NewmontIn response to dispute over the lawsuit filed by PT Pukuafu Indah against PT Newmont Nusa Tenggara, Corporate Secretary of Bumi Minerals Muhammad Sulthon said the share ownership of Bumi Minerals, through PT Multi Daerah Bersaing, would not be affected by the case."MDB has nothing to do with the case since Pukuafu doesn't file its lawsuit against the shares owned by MDB," he explained.Therefore, he added, the ruling of the South Jakarta District Court would not affect MDB-controlled shares in Newmont. President Director of PT Newmont Nusa Tenggara Martiono Hadianto said Newmont Indonesian Limited (NIL) and Nusa Tenggara Mining Corporation (NTMC) had appealed the ruling to the appeal court. "The listing of BMR seems not to be affected by the ruling." Bisnis records Bumi Minerals is the only mining company in Indonesia that has been able to get the status of publicly listed company in its first year debut. The company so far has found its revenues contributed by Bumi Resources Japan and PT Newmont Nusa Tenggara.However, the ruling that favors Pukuafu Indah also leads Newmont to take action. The owner of the Batu Hijau mine has appealed the ruling. The ruling may interrupt the divestiture of Newmont, which has actually been finished, as well as interrupt the follow-up program of divesting 7% shares in the mining company in 2010. Such potential interruption is indicated by the government's decision to request deadline extension from December 18, 2010 for the purchase of 7% shares in Newmont worth US$271.6 million divested for 2010. Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources (ESDM) Bambang Setiawan told the deadline for the decision on the purchase of 7% shares in Newmont was supposed to end on December 18, 2010 in accord with the company's working contract.However, added Bambang, the Ministry of ESDM and the Ministry of Finance were discussing the plan to extend the deadline. "Following the case [the legal dispute between Pukuafu and Newmont], we have asked for the deadline to be extended from the previous December 18." In accord with the provision on divestiture inked in the working contract of Newmont, the central government is given 30 days to decide on whether or not to buy the divested shares. Regional government's rightIf the central government decides not to buy the divested shares, the right will go to the regional government. As to the time needed to complete the divestiture of the 7% shares, Bambang explained it would depend on the agreement between the government and Newmont. "We don't know how long the deadline will be extended. We will discuss it with the Legal Bureau of the Ministry of Energy and Mineral Resources and Newmont."In the meantime, in response to the ruling of the South Jakarta District Court that grants Pukuafu's request for the annulment of the ruling of the International Arbitrage (March 31, 2009) and asks Newmont to transfer 31% divested shares in Newmont to Pukuafu Indah, Bambang said the government only acted as the mediator.Besides, he opined the ruling had not yet had permanent legal power. "The one sued by Pukuafu is Newmont, which has appealed the ruling. So, let's follow the legal process. According to Bambang, Newmont in terms of the contract had already complied with the proper procedure in the divestiture, namely by offering 51% shares to the government first. "It is already proper. However, what can we say anymore if the court says otherwise? We have to cross-check it again. Let's follow the legal process," stated Bambang. (Bisnis/nti/ags)

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Editor : Muhammad Fariz Aulia

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