Mining and energy financier Nathaniel Rothschild, one of the founders of Bumi plc, which owns 29% of Bumi Resources, resigned from the company’s board, saying he had lost confidence in the chairman and the board. Bumi Resources is Indonesia’s largest coal producer. Bumi plc has suffered several setbacks in the last year, which has led to an investigation into alleged irregularities.
Rothschild’s move was spurred by a proposal from the Bakrie family, who offered $1.2 billion for Bumi’s Indonesian coal assets. Rothschild explained it would be a disgrace to proceed with, or even to entertain, the proposal by the Bakries before the investigation is completed. He questioned the board’s loyalty to minority shareholders.
In 2011, Bumi Resources mined 65.9 million metric tons. Its primary subsidiaries are Kaltim Prima Coal (KPC) and Arutmin, which operate through seven primary mines: the Sangatta and Bengalon mines are operated by KPC and the Senakin, Satui, Mulia, Asam Asam and Batulicin mines are operated by Arutmin.
