PT Bumi Resources, Indonesia's biggest coal producer, said it's open to a strategic partnership in its Australian unit Herald Resources Ltd
Herald is "entertaining offers" from potential investors keen on a stake in the Perth-based company, Dileep Srivastava, head of Bumi's investor relations, said in a phone text-message today. Calipso Investment Pte. Ltd, wholly owned by Bumi, holds an 84.2 percent stake in Sydney-listed Herald.
Bumi is seeking partners to develop Herald's zinc and lead mine in Indonesia after acquiring the company for A$563 million ($454 million) last year. An investor in Herald may also help ease pressure on Bumi's cash flow as the Indonesian company expands its coal business.
Herald's management is considering offers to take up equity in the company or its debt, Srivastava said.
Bumi shares rose 1.1 percent to 1,880 rupiah trading today, compared with the 1.6 percent gain in the benchmark Jakarta Composite Index.
The Indonesian company has also expressed its interest in the Haju coking-coal mine run by BHP Billiton Ltd, Srivastava said. The company is awaiting the outcome of BHP's "deliberations," he said.
BHP said on June 9 that it scrapped plans to develop the coking-coal mine on the Indonesian part of Borneo island as the project doesn't fit its long-term strategy.
Bumi announced in January three coal-related takeovers valued at 6.2 trillion rupiah ($605 million).
http://www.bloomberg.com/apps/news?pid=20601081&sid=a2MKCFTtIBhI
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