Bumi break-up draws a step nearer

Long-suffering investors in coal miner Bumi took a potentially decisive step towards a separation from Indonesia’s powerful Bakrie family today.

Executives said they had been convinced the chairman, Samin Tan, had the finances to buy out the Bakries’ 23.8% stake in Bumi for $223 million (£136.6 million). Tan had not met an earlier deadline to prove he had the financial muscle for the deal, but had been granted an extension to today.

This is a key part of a multi-layered transaction that will finally resolve ownership issues that have plagued Bumi since the Bakries co-founded the group with financier Nat Rothschild in 2010. Shareholders will vote on the separation on the week commencing 16 December.

Bumi chief executive Nick von Schirnding also plans to give Bumi a fresh start with a name change to Asia Resource Minerals.

Mining giant Rio Tinto today said it was stopping production at its Gove alumina refinery in Australia, admitting the plant — which employs 1400 workers — is no longer viable.