Bumi, EMP to Merge in July
The Jakarta Post (22-March-2006)
PT Bumi Resources announced Tuesday a plan to merge with oil and gas firm PT Energi Mega Persada (EMP), with the merger expected to take effect in July this year. The two publicly listed companies have opted for a share swap deal. The merger plan came after Bumi signed binding sale agreement Thursday to sell three coal mining firms for US$ 3.2 billion to a consortium controlled and led by local company PT Borneo Lumbung Energi. The company will seek approval for the divestment deal from its shareholders in May. As part of the deal, Bumi sold its 95 percent in PT Kaltim Prima Coal and 100 percent stakes in PT Arutmin Indonesia and IndoCoal Resources Ltd. After the merger, Bumi will set up a plant to process coal into crude synthetic oil in South Sumatra in order to add value to its coal output. For this, Bumi has signed a deal to acquire coal producer PT Pendopo Energi Batubara in South Sumatra, which is valued at US$ 3 million. The plant would produce crude synthetic oil with a capacity of 80,000 barrels per day (bpd). To achieve this production target, the company would need 47,500 tons of coal per day. The plant will require an investment of US$ 3 billion. Last year, Bumi produced around 45 million tons of coal, while its sales reached 44.3 million tons, with an average price estimated at US$40 per ton. Bumi shares have been suspended since last Friday following reports about divestment of its coal mining assets. The share price was last quoted at Rp.980 on the Jakarta Stock Exchange.

Bumi Pursues Income Target Rp.16 Trillion
Bisnis Indonesia, page B1 (8-December-2005)
PT Bumi Resources Tbk predicts it can reach its sales target of US$1.6 billion (Rp.16 trillion) with a coal sales volume of 43 tons per year. The company’s income increased by 63 percent compared to last year’s Rp.9.8 trillion with a coal sales volume of 36 tons per year. A majority of the income, around 97 percent, is derived from export. As a result of the price hike in fuel, the company’s production cost is estimated to rise from US$21.2 per ton this year to US$22.2 per ton next year.