Reuters reported that Indonesian coal miner PT Bumi Resources posted a net loss in the first half of 2012, dragged down by rising costs and low thermal coal prices.

Bumi, Asia's biggest thermal coal exporter, said that the net loss in the first half was USD 322.1 million as compared with a restated net profit of USD 231.7 million in the same period last year. First half revenue was at USD 1.95 billion as compared with a restated revenue of USD 1.793 billion a year earlier.

Thermal coal prices have been battered this year, hitting a two year low in June 2012. A boom in global coal supply has coincided with a flood of US exports, as US gas prices at record lows make gas a cheaper alternative for domestic power generation.

Earlier, S&P cut its rating on Bumi to BB- from BB with a negative outlook, saying the company was unlikely to substantially lower its debt over the next 12 months.

Source - Reuters

(www.coalguru.com)