Miner Bumi says will hit 2013 output target, outlook challenging
LONDON, Nov 4 (Reuters) - London-listed coal miner Bumi Plc , which plans to split from its Indonesian co-founders under a restructuring plan, said on Monday it was on track to hit its 2013 production target after a 10 percent rise in the third quarter.
Indonesia-focused Bumi said on Monday it produced 6 million tonnes of coal in the quarter at its core Berau subsidiary, taking nine-month production to 17.5 million tonnes and closing in on a target of 23 million tonnes for the year.
Bumi plans to split with the politically influential Bakrie family which co-founded the business and has been cutting back spending to overhaul the company at a time of weak coal prices. It said production costs came down 6 percent over the 9 months, as the company has cut fuel consumption and exploration costs.
Spending plans for next year are currently under review. In 2013, capital expenditure will be around $50 million, down from an original forecast of $70 million, as it spent less on roads, bridges and support infrastructure.
"While coal prices have moved off their lows, the near term outlook remains challenging," Chief Executive Nick von Schirnding said in a statement.
Bumi brought forward its quarterly earnings report to Monday in order to include the numbers in documents due to be sent out to investors this week, ahead of a vote to approve the separation from the Bakrie family. That long-delayed vote is due to be held in December.