Indonesian Bumi Resources begins second probe

Indonesian coal miner PT Bumi Resources said today it will submit a second independent investigation on its accounts.

It follows London-listed Bumi’s investigation into alleged financial irregularities at Indonesian arm Bumi Resources. The probe, led by City law firm Macfarlanes, is expected to conclude this month.

Bumi, co-founded by financier Nat Rothschild, owns 29 per cent of Bumi Resources.

The powerful Bakrie family, which owns a large stake in Bumi Resources, last month proposed a $1.4bn (£880m) ‘divorce’ from Bumi. They have asked to cancel their shareholding in Bumi and take back the Indonesian assets they brought in less than two years ago.

Bumi Resources director Dileep Srivastava said today that the company was committed to following Indonesian law and complying with regulation.

He added that Bumi Resources was "confident that these proactive steps are in the best interest of all our stakeholders and appropriately advance the concerns of Bumi".

Bumi today acknowledged the second investigation, and said it will not make any recommendations on the transaction until the Macfarlane probe is “appropriately advanced”.