A robust year bodes well for Bumi Resources

As oil prices rise, businesses are looking to other forms of energy.

It is estimated that at the current global consumption level, there is enough coal to meet all of the planet's energy needs for the next 600 years.

There is particular interest in 'thermal coal' as it does not hold the carbonization properties possessed by metallurgical coals, making it a "cleaner" source of fuel.

Power use in China, the world's biggest coal consumer, is rising 13 percent yearly and utilities are building plants at a record pace.

The nation gets 78 percent of its electricity from coal, spurring imports from Australia, Indonesia and Vietnam.

Buoyed by Indonesia's significant coal deposits, Bumi Resources, a world-class operator in the energy and mining sectors, is supplying an increasing amount of thermal coal to international customers.

Arutmin Indonesia, Bumi Resources' first coal mining company, produces quality eco-coal for international and domestic power generation companies; while its Kaltim Prima Coal is the world's largest producer and exporter of thermal coal. KPC and Arutmin have also been ranked as two of the world's safest coal mines.

Benefiting from the buoyant coal market and in-house efficiency measures, including strategic stockpiling in 2006 to protect early 2007 sales, Bumi Resources' strategic management targets have created an environmentally sound and financially solid company.

Recognizing the excellent position of Bumi Resources, Tata Power, India's largest private sector electricity generating company, purchased 30 percent of the company's coal assets for $1.3 billion in June. The $300 million convertible bond issue was oversubscribed three times by overseas investors the very next day after its launch.

The continued expansion of Bumi Resources will rely on financing from both home and abroad. Exploratory projects and further investments will ensure that the company remains a world-class energy and mining operator.

www.bumiresources.com

dileep@bumiresources.com

(China Daily 08/17/2007 page19)