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oking coal miner PT Borneo Lumbung Energi & Metal suffered major financial losses last year due to tumbling commodity prices coupled with losses from its investment in London listed Bumi plc.

In an overdue 2012 financial report submitted to the Indonesia Stock Exchange (IDX) on Tuesday, Borneo reported US$550.46 million in net losses last year, a massive setback compared to the $210.26 million net profit it made in 2011.

The 6.8 percent drop in revenue contributed to the losses. Borneo'€™s net sales were worth $645.95 million in 2012 compared $693.05 million a year earlier.

'€œWe see a significant decrease in coal prices. The worldwide commodity market dropped,'€ Borneo director Kenneth Allan said over the telephone on Tuesday.

He declined to reveal the company'€™s average coal selling price during the period, saying that Borneo would make a separate announcement on operational updates.

The company'€™s financial report showed that it suffered a $552.87 million loss of jointly controlled entities in Bumi plc. Borneo, through special purpose vehicles, currently holds a 23.8 percent indirect stake in Bumi plc, which reported $2.3 billion in net losses in 2012, partly over asset reclassification and declining business in subsidiaries. Bumi plc currently holds a 29.2 percent stake in the country'€™s largest coal miner, PT Bumi Resources, and 84.7 percent of another major miner, PT Berau Coal Energy, which also reported net losses.

Borneo'€™s soaring financial cost of $89.99 million, particularly due to its $1 billion debt with Standard Chartered Bank, also contributed to its huge net losses. According to its financial report, Borneo has paid off $70 million of the debt, which was obtained in early 2012 to finance the purchase of a 23.8 percent stake in Bumi plc from Bakrie Group.

As part of the repayment, Borneo made a $50 million payment on June 24. According to a previous presentation update, Borneo is planning to pay off $143 million of the loan this year.

Borneo used its 99.99 percent in PT Asmin Koalindo Tuhup, which has a mining concession in central Kalimantan, as collateral for the $1 billion loan from Standard Chartered. Borneo, whose stock trading has been suspended since early this month due to the late submission of its financial report, has said that it was in talks to sell up to 20 percent of Asmin Koalindo Tuhup to a strategic partner.