Bumi plc ("Bumi" or the "Company")
14 June 2012
For Immediate Release
Bumi plc Annual General Meeting
Good Morning and welcome to Bumi plc's annual general meeting. As your chairman I would like to make a few introductory remarks. Let me start by saying that I believe it is the Board's duty to set out a clear strategy for the company, enable the management team, led by our chief executive Nalin Rathod, to execute on it and then importantly to hold management accountable for the delivery of that strategy.
The board's agenda for 2011 was shaped by the creation of a FTSE-listed company and to ensure the board has an appropriate range and balance of skills and experience. I believe we have achieved that. Today we have a mix of directors both from Indonesia as well as outside of Indonesia who have extensive mining and commercial experience.
Our vision is to become the leading UK listed thermal coal producer through the development of our world class asset base. The main thrust of our strategy is to deliver on the one of the most significant thermal coal expansion programmes in the industry. Last year, PT Bumi and Berau produced 85 million tonnes of coal and we aim to increase this to around 140 million tonnes by 2014. Another key aspect of our strategy is to optimise our asset base and to further improve the way we operate by reducing costs and improving efficiencies. Lastly, we are working towards reducing the overall levels of debt in the Wider Group.
Our goal of becoming the leading UK listed coal producer is an ambitious one - but one which I am confident we will deliver on. With this in mind we are considering ways to simplify our structure and I am hopeful that before the end of this year we will be able to update you with a progress report.
In the meantime we are making significant progress in building management capacity across the Wider Group. In May this year we announced a number of management changes at Berau, including the appointment of Scott Merrillees, our CFO, as the CFO of Berau, as well as the appointment of myself as a Commissioner at Berau. We expect to announce further management changes at Berau going forward. In addition, on May 21st we announced a number of new appointments at PT Bumi, including John Slack as new Vice President Director. John was previously the CFO of Astra International, one of the largest listed Indonesian groups. In addition, Stefan White was appointed as the new CFO of PT Bumi and Ken Allen as director of marketing with myself appointed as President Commissioner of PT Bumi. Lastly, on May 3rd we announced the appointment of myself as President Director of BRMS, the base metals exploration arm of PT Bumi. I am confident that these executive changes will significantly strengthen the home bench as we strive to deliver operational excellence across the Group.
Turning to Health and Safety, the board regards the Group's performance in health, safety as well as environmental and community affairs as vitally important. Our focus remains on prioritising the health and safety of our employees, minimising the Group's environmental impact and engaging constructively with communities to create lasting economic and social value.
I would now like to introduce the new names of proposed directors for election at today's AGM.
Graham Holdaway is an accountant with experience in the electricity, oil and gas, and mining sectors. Graham has commercial and public policy advisory experience in Australia, Indonesia, and Papua New Guinea. Graham was previously with KPMG where he was responsible for various practice areas including infrastructure / energy policy and access regulation.
Jean-Marc Mizrahi is the Founder and Chief Executive Officer of Ymagis, a leading digital cinema services company in France, Germany, Spain and Benelux. Prior to this, he was the Chief Executive Officer of clair Group, a digital postproduction company and the Founder and Managing Partner of Lazard Asia Limited, the Asian arm of the Lazard Fr¨res Group.
Alexander Ramlie is currently the President Director and Chief Executive Officer of PT Borneo, having previously been Chief Operating Officer. Prior to this he was Managing Director of Ancora Capital Management Pte Ltd, a private equity fund management firm.
I also wish to thank James Campbell and Badung Tariono, who will not be standing for re-election, for their hard work and commitment to the company.
Lastly, turning to thermal coal. There has been some recent speculation that the Indonesian government plans to introduce an export tax for coal. We are encouraged by confirmation from the Indonesian government last week that there is no plan to impose an export tax for coal. It is also worth mentioning that all of our coal operations fall under the 1st generation contracts of work whose tax and royalty regimes are protected by the Lex Specialis principle meaning the terms cannot be changed.
In terms of the thermal coal price, it has fallen significantly over recent months, along with the prices of most other metals and minerals, reflecting the challenging global economic conditions. This is clearly of concern - and if prolonged, will have a material impact on the industry's level of profitability. We are therefore accelerating our efforts at reducing costs and improving efficiencies wherever we can, across the Wider Group. Over the medium term the demand picture looks well supported for the Pacific region, with growing demand for thermal coal from Indonesia forecast for China, India as well as neighbouring areas.
For further information, please contact:
Bumi plc: 020 7201 7510
Nick von Schirnding
Finsbury: 020 7251 3801