Bumi dumps $2.07-bn acquisition of Indonesian miner Bumi Resources Minerals

Bumi Plc, the London-listed diversified mining group today said that it will not proceed with its proposed $2.07-billion acquisition of the remaining 74-per cent of Indonesian mining company Bumi Resources Minerals (BRM), due to "continuing market uncertainties".

''This action is being taken in the best interest of its shareholders and avoid any risk of being disadvantaged during the present sensitive market environment,'' said Bumi in a short statement.

Jersey, Channel Islands-based Bumi owns 26 per cent of BRM through its 29.18 per cent stake in BRM's owner, Indonesia's biggest thermal coal producer Bumi Resources.

Separately, Indonesia's Bakrie Brothers, who hold 47 per cent of Bumi Plc, are in talks with Switzerland-based commodities giant Glencore for a $900 million loan to refinance a $1.9 billion loan from Chinese sovereign wealth fund CIC.

Bumi, founded by London financier Nat Rothschild, had said in June that it would issue $2 billion in convertible bonds to buy the remaining 74 per cent stake in BRM, to broaden the company's portfolio from thermal coal and add base metals, iron ore and other precious metals.

BRM holds various non-coal mineral operating, development and exploration properties in Indonesia and in West Africa. It has a diverse portfolio of minerals, including copper, gold, zinc, lead, iron ore and diamonds.