Bumi removes Rothschild as Chairman

Indonesia-based coal miner Bumi, which was formed in June last year, generated maiden revenues in 2011, helped by its 85 per cent stake in PT Berau.

Bumi was previously known as Vallar which was formed in March 2010. Its share price has been weighed down in recent months by corporate governance risk after a major shareholder, Borneo Bumi Energi, demanded numerous board-room changes including the removal of founder Nat Rothschild.

The majority of these changes seem to have been put in place today with Samin Tan appointed Chairman, replacing former Co-Chairman Rothschild. Rothschild has stayed on as a non-independent director.

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"I would like to assure all of our stakeholders that as chairman of Bumi plc, together with the board and executive team, we will work tirelessly to deliver on the achievement of our key objectives and drive increased shareholder value as well as rolling out best practice corporate governance," said Tan.

In other moves, Nalin Rathod has been appointed Chief Executive Officer, replacing Ari Hudaya who is now a non-executive director. Scott Merrillees has replaced Andrew Beckham as Finance Director.

"We have met our production targets for the year, despite high levels of rainfall in the first quarter, which impacted output. Costs have been well maintained, with fuel being the major pressure point but this was more than offset by higher coal prices," Rathod said..

Revenue total $1,407m in the 12 months ended December 31st (2010: nil), while the loss before tax widened slightly from $108m to $115m as costs increased. "Cost increases were mainly due to higher fuel prices and an increase in the stripping ratio as well as due to greater haul distances from certain mines to coal processing plants."

Group cash stood at $608m at the end of the year, while net debt stood at $222m. No dividend was proposed.

The company's two main operations, BT Berau and BT Bumi, are currently undertaking major expansions. BT Berau is said to be on track to increase output from 19m tpa to 23m tpa this year, while BT Bumi is set to ramp-up production from 66m tpa to 75m tpa.

"With one of the strongest growth profiles in the industry over the next few years, Bumi plc expects to be a major beneficiary of strong thermal coal fundamentals over the medium and long term," the company said.

Shares rose 1.36% to 706p early on.

BC