bumis-mine-deal-falls-through

Bumi's mine deal falls through

Failure of Bumi Resources to sell its two most profitable coal mines may make it difficult to expand into oil and gas exploration.

Indonesia's largest coal exporter, PT Bumi Resources, said on Friday August 25 that it failed to reach a final agreement with PT Renaissance Capital to sell its two largest mines for $3.2 billion.

Bumi agreed in March to sell its PT Arutmin Indonesia and PT Kaltim Prima Coal KPC mines to PT Borneo Lumbung Energi, an affiliate of Renaissance Capital, in what would have been Indonesia's second-biggest acquisition.

According to sources, Renaissance will cancel a $2.1 billion loan since the deal fell through. He adds that at one of the mines, production costs had increased beyond expectations in the second quarter. KPC is the largest...

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