BUMI Addresses Australian Mine Acquisition
PT Bumi Resources Tbk. (BUMI) has provided an explanation following a request from the Indonesia Stock Exchange (IDX) regarding the acquisition of the Australian mining company, Loyal Metals (LM).
BUMI Director, R.A. Sri Dharmayanti, clarified that the transaction value for the acquisition of LM is AU$7lag79,069,731.75, which is equivalent to approximately Rp1 trillion. “The transaction value was determined based on the results of legal, financial, tax, and technical due diligence conducted by the Company’s independent advisors, as well as negotiations between the Company and LM,” Sri stated in an information disclosure cited on Friday.
She detailed the funding sources used by BUMI for the LM acquisition. US$54,000,000, or approximately Rp958,284,000,000, is sourced from a loan provided by Glencore Australia Holdings Pty Limited (a third party) under a Facility Agreement dated 24 August 2026. The remaining Rp46,458,244,136.50 is sourced from the internal cash of the Bakrie Group issuer.
Sri noted that LM’s assets, Wolfram Limited, and Jubilee Metals are located in the Queensland region. Consequently, BUMI plans to create synergies in operations, processing infrastructure, technical labour, mining contractors, and logistics routes, as well as leveraging similar licensing structures and environmental obligation compliance within a single jurisdiction.
This acquisition is also intended to support the Company’s objective of achieving an EBITDA mix from non-thermal coal business activities of over 50% by 2031.
However, the IDX highlighted information found on the investors.loyalmetals.com website, which indicates that certain LM projects, including a high-grade copper mine, have been out of operation since July 2005. LM also holds several other lithium projects.
Sri stated that these projects cannot yet provide direct revenue contributions to the Company as they require further infrastructure development. “For the Highway Reward Copper-Gold Mine, revenue contribution is targeted for the second year following the acquisition. For the lithium assets, the timeline for revenue contribution will be determined once exploration and evaluation activities are completed,” she explained.
She continued by noting that Wolfram Limited has already contributed to BUMI’s revenue through its first production in May 2026. Jubilee Metals Limited is currently in the construction phase of a Carbon-in-Leach (CIL) plant.
“Mining activities are essentially ready to commence and are expected to proceed once the CIL plant construction is completed,” she added.