At one of the world’s largest coal mines in the Indonesian province of South Kalimantan, enough of the fossil fuel is being stolen every three days to fill a vessel almost the size of the Chrysler Building, according to two people with knowledge of the situation.
The Bakrie family’s attempt to convert $1.3 billion of debt into equity at Indonesia’s PT Bumi Resources and to cut business ties with U.K. financier Nathaniel Rothschild is being stymied by slumping coal prices.
PT Bumi Resources, the Indonesian coal producer at the heart of a London probe amid claims of irregularities, may struggle to refinance debt in the next year, Standard & Poor’s and Moody’s Investors Service said.
PT Bumi Resources said a probe by Bumi Plc, the London-listed shareholder founded by Nathaniel Rothschild, and subsequent “leaks” about the matter are an attempt to damage the Indonesian coal producer.
PT Bumi Resources, Indonesia’s biggest exporter of thermal coal, is seeking to raise cash by selling a unit and issuing shares after the start of a corporate governance probe prompted concern it may struggle to repay debt.
Indonesia’s capital markets regulator will await the results of Bumi Plc’s probe into claims of financial irregularities at associated companies in the Southeast Asian country before taking any action.