Bumi hires new execs and aims to cut costs as earnings decline

 
Suzie Neuwirth
EMBATTLED FTSE 250 miner Bumi yesterday unveiled a management shake-up and said that the company’s separation is “at an advanced stage”, as it said half-year earnings had halved from last year.

The company – which has been embroiled in a tug-of-war between its co-founders financier Nat Rothschild and Indonesia’s Bakrie family – has appointed industry veterans Paul Fenby and Keith Downham as chief financial officer and chief mining officer. It is also aiming to cut costs and increase production in order to turn around its fortunes.

Bumi’s chief executive Nick von Schirnding said that addressing governance and financial control issues had been a key area of focus for the Berau division, which was found to have financial irregularities earlier this year. “We carried out an extensive review of the financial position of Berau which has resulted in increased alignment with Bumi plc policies and procedures and the enhancement of our financial systems and controls,” he said.

A circular proposing Bumi’s separation will be sent to shareholders in September. Shares closed 1.7 per cent higher at 214.10p.