BUMI Missed Public Disclosure on Bengalon Strike - The Indonesia Today

Public disclosures and documents filed by PT Bumi Resources (BUMI) Tbk to the stock market authorities have never mentioned about a 23-day strike at the Bengalon mine in East Kutai, East Kalimantan, which cost an estimated loss of 560,000 tons of coal production in the period of August and September 2010.

The substantial event has only recently been disclosed by Vallar Plc in its prospectus (page 48) related to the acquisition of shares in BUMI and Berau Coal.
"In August and September 2010, the Bumi Resources Group experienced a 23-day strike at the Bengalon mine by the employees of Darma Henwa over a dispute regarding payments of holiday bonuses, which caused the Bumi Resources Group an estimated loss in coal production of 560,000 tonnes that it could have otherwise achieved during this period," the prospectus described.
Darma Henwa (DEWA) is one of coal mining contractors hired by Kaltim Prima Coal (KPC), a subsidiary of Bumi Resources (BUMI), for coal operations in East Kalimantan.
At average price of US$75 per ton, the loss of production due to the strike is estimated at US$42 million.

BUMI closed at Rp3000 last Friday. At that price, BUMI has market capitalization of Rp62.3 trillion or about US$7 billion. The stock slipped 0.8% year-to-date.