Bumi drops bid to acquire whole of minerals group

Bumi Plc, the mining group founded by the financier Nat Rothschild, shelved plans to buy the remaining stake in Bumi Resources Minerals (BRM), the remaining part of the Indonesian mining business in which it holds a 26 per cent.

In a short statement to the market, Bumi said it would not proceed with the $2.07bn (£1.3bn) acquisition of the stake due to "continuing market uncertainties".

London-listed Bumi Plc owns 26 per cent of BRM through its 29 per cent stake in BRM's owner, the Indonesian thermal coal giant Bumi Resources.

Mr Rothschild had hoped to simplify this complex ownership structure by paying Bumi Resources $2.07bn in convertible bonds for the rest of BRM, in a deal that would have added base metals, iron ore and precious metals to its main focus of thermal coal.

Separately, Indonesia's Bakrie Brothers, who own a 47 per cent stake inBumi Plc, are thought to be close to agreeing a $900m loan from Glencore, the commodities trader, as they seek to refinance their debt.