Monday, November 8, 2010

Bumi Resources Mineral pricing share sale

PT Bumi Resources Minerals, a unit of the coal mining giant PT Bumi Resources Tbk plans to sell new shares at IDR625 to IDR635 a piece in an initial public offering this month.
Bumi Minerals targeting at least $200 million from floating 4.32 billion, or 25.53 percent, of the company’s shares on the stock market.
The company may spendabout US$580 million on capital expenditures over the next three years. Bumi Minerals may spend US$240 million on capital expenditures next year to finance its five mining projects in West Africa and Indonesia.
The company would allocate US$100 million for its zinc mine in Dairi, North Sumatra, and US$40 million for its iron ore mine in Mauritania. The zinc project in Sumatra, which has 20.1 million tons of reserves, could start operation in two years. The Mauritanian mine, which has an estimated 100 million tons of iron ore, is expected to begin producing in 2011.
Bumi Minerals has appointed Danatama Makmur and Nomura Indonesia as the underwriters for the stock sale. Credit Suisse, JP Morgan, and Nomura International will be the international selling agents.

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