12th Feb 2014 09:09
LONDON (Alliance News) - Asia Resource Minerals PLC Wednesday said it has exceeded its full-year production target but that problems remain on completing its ongoing separation.
The Indonesian thermal coal mining company, formerly Bumi PLC, said it achieved 12% higher production at the PT Berau site of 23.5 million tonnes for the full year ended December 31, 2013, compared to the previous year, exceeding its target of 23 million tonnes for the period.
The company said its fourth quarter production increased 1.1% to 5.9 million tonnes with a particular increase at the company's Binungan and Sambarata mines.
Asia Resource Minerals said its mine plan envisages growth in production for 2014 of around 10% and discussions are ongoing with Indonesian authorities about increasing the current quota at the mine to over 23 million tonnes.
The company said it remains focused on cost cutting and asset optimisation, its priority during a weaker coal price environment.
Asia Resource Minerals announced in a separate statement that its former partner the Bakrie Group has again informed it that it cannot complete the separation transaction between the two parties in accordance with the extended timetable.
The company said it is in discussions with the Bakrie Group to understand the reasons behind the further delay and to consider an extension on its timetable by which the deal was expected to be completed on February 21.
The timetable has already been pushed back three times after talks with Bakrie over delays weren't concluded, the most recent updated timetable built a comprehensive plan of payments and conditions in order to not have any more extensions.
However, the most recent timetable announced on January 20 did include the possibility of a further one-month extension of the deadline under limited and exceptional circumstances.
In December, shareholders of Bumi, which was founded by Nat Rothschild, approved the separation of the company after a long power struggle, and it changed its name to Asia Resource Minerals.
Under the deal, Asia Resource Minerals retained control over Berau, while the influential Bakrie family will hold the Bakrie Group and BT Bumi Resources Tbk.
Additionally, Asia Resource Minerals continues to be in conflict with former director Rosan Roeslani over cash and assets he may owe the company. Roeslani, who is connected to the Bakrie group, raised a number of issues earlier in the month related to a previously signed agreement over the repayment of USD173 million worth of funds to Bumi, stating that any outstanding liability to transfer cash or assets has been extinguished.
Asia Resource Minerals shares were down 5.1% to 212.92 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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