Bumi today issues its Production Report for the third quarter ended 30 September 2011.
Highlights
Strong operating performances across all coal businesses.
Third quarter group production of 23 million tonnes, up 35% over Q3 2010.
Year-to-date total Group production of 62 million tonnes, 12% higher than year-to-date 2010.
On track to meet 2011 target of 86 million tonnes of coal.
Realised prices for Q3 of $94 per tonne, an increase of 32% over Q3 2010.
Agreement on re-payment of the PT Bumi Resources $251 million loan to Bukit Mutiara and
$231 million investment with Recapital.
Successful refinancing of $600 million of the $1.9 billion CIC loan by PT Bumi Resources,
reducing its annual interest expense by around $72 million.
Strong operating performances across all coal businesses.
Third quarter group production of 23 million tonnes, up 35% over Q3 2010.
Year-to-date total Group production of 62 million tonnes, 12% higher than year-to-date 2010.
On track to meet 2011 target of 86 million tonnes of coal.
Realised prices for Q3 of $94 per tonne, an increase of 32% over Q3 2010.
Agreement on re-payment of the PT Bumi Resources $251 million loan to Bukit Mutiara and
$231 million investment with Recapital.
Successful refinancing of $600 million of the $1.9 billion CIC loan by PT Bumi Resources,
reducing its annual interest expense by around $72 million.
Development and Expansion
Group’s expansion programme on track with 2014 target of 140 million tonnes.
Berau Coal’s expansion plan to achieve 30 million tonnes annual production in 2014 is on
schedule.
KPC’s expansion plans to achieve its 2014 target of 70 million tonnes is on schedule. The
Sangatta expansion is underway, with the second overland conveyor under construction,
with expected completion in the first half of 2012. The construction of the Melawan crusher
and conveyor is on track for completion in 2012. Work has commenced on upgrading the
Bengalon facilities.
Arutmin’s volume expansion to 40 million tonnes in 2014 is on track. Construction of the
West Mulia and Asam-Asam coal processing plants and conveyors is underway with
completion expected by the middle of 2012.
Financing update
Agreement has been reached on the re-payment of the PT Bumi Resources $231 million
investment with Recapital in H1 2012. A schedule has been agreed for early re-payment
of the PT Bumi $251 million loan to Bukit Mutiara 50% in 2012 and 50% in 2013. These
items, which were fully disclosed in the Bumi plc listing prospectus of 17 June 2011, were
discussed extensively at the Audit Committee and a schedule to secure re-payment of
these PT Bumi loans and investments and to use the proceeds to pay down debt was
presented by the Chief Financial Officer and approved by the plc Board at its meeting in
Jakarta on 12 October.
It also is agreed that there will be progressive realisation and in all cases marking to fair
value of the business development assets in PT Bumi Resources.
On 8 November 2011, Bumi plc announced that its associate, PT Bumi Resources, had
completed pre-payment, 2 years early, of $600 million of the $1.9 billion outstanding loan
to the China Investment Corporation. The effect of the debt refinancing will reduce PT
Bumi's annual interest expense by around $72 million. The remainder of the $1.3 billion
CIC debt is able to be pre-paid from October 2012 ($600 million) and October 2013
onwards ($700 million).
Agreement has been reached on the re-payment of the PT Bumi Resources $231 million
investment with Recapital in H1 2012. A schedule has been agreed for early re-payment
of the PT Bumi $251 million loan to Bukit Mutiara 50% in 2012 and 50% in 2013. These
items, which were fully disclosed in the Bumi plc listing prospectus of 17 June 2011, were
discussed extensively at the Audit Committee and a schedule to secure re-payment of
these PT Bumi loans and investments and to use the proceeds to pay down debt was
presented by the Chief Financial Officer and approved by the plc Board at its meeting in
Jakarta on 12 October.
It also is agreed that there will be progressive realisation and in all cases marking to fair
value of the business development assets in PT Bumi Resources.
On 8 November 2011, Bumi plc announced that its associate, PT Bumi Resources, had
completed pre-payment, 2 years early, of $600 million of the $1.9 billion outstanding loan
to the China Investment Corporation. The effect of the debt refinancing will reduce PT
Bumi's annual interest expense by around $72 million. The remainder of the $1.3 billion
CIC debt is able to be pre-paid from October 2012 ($600 million) and October 2013
onwards ($700 million).
Berau Coal
Berau Coal produced 5.3 million tonnes of coal for the quarter, an increase of 23% over Q3
2010.
Year to date production was 14.3 million tonnes and is expected to meet the 20 million tonnes
target for 2011.
Year to date stripping ratio was 9.6 bcm per tonne.
Berau Coal achieved an average selling price per tonne in the third quarter of $87.0/t.
Berau Coal produced 5.3 million tonnes of coal for the quarter, an increase of 23% over Q3
2010.
Year to date production was 14.3 million tonnes and is expected to meet the 20 million tonnes
target for 2011.
Year to date stripping ratio was 9.6 bcm per tonne.
Berau Coal achieved an average selling price per tonne in the third quarter of $87.0/t.
Kaltim Prima Coal (KPC)
KPC produced 11.6 million tonnes of coal, an increase of 29% from the third quarter of 2010.
Year to date production was 29.8 million tonnes, an increase of 6% over the prior period.
Production at the Bengalon mine has been behind schedule and a portion of the site has now
been subcontracted to a new contractor.
The year to date stripping ratio was 12.7 bcm per tonne. KPC achieved
an average selling price per tonne in the third quarter of $99.0/t.KPC produced 11.6 million tonnes of coal, an increase of 29% from the third quarter of 2010.
Year to date production was 29.8 million tonnes, an increase of 6% over the prior period.
Production at the Bengalon mine has been behind schedule and a portion of the site has now
been subcontracted to a new contractor.
The year to date stripping ratio was 12.7 bcm per tonne. KPC achieved
Arutmin
Arutmin produced 5.8 million tonnes of coal, an increase of 71% from the third quarter of 2010.
Year to date production at Arutmin was 17.3 million tonnes, an increase of 17% over the prior
period.
The year to date stripping ratio increased from 8.1 to 10.7 bcm per tonne due to new pits that are
being opened.
Arutmin achieved an average selling price per tonne in the third quarter of $88.0/t.
Arutmin produced 5.8 million tonnes of coal, an increase of 71% from the third quarter of 2010.
Year to date production at Arutmin was 17.3 million tonnes, an increase of 17% over the prior
period.
The year to date stripping ratio increased from 8.1 to 10.7 bcm per tonne due to new pits that are
being opened.
Arutmin achieved an average selling price per tonne in the third quarter of $88.0/t.