Mining: The darker side of the London marketLast updated: Oct 18, 2012 • 3:45 pm No Comments
The Bumi drama highlights how many in the City want to shine more light on foreign firms gaining from a London listing.
Bumi affair reflects appallingly on London, so give the box tickers more bite
One consequence of Nat Rothschild’s abrupt resignation from the board of Bumi is that it finally complies with a key provision of the Combined Code on Corporate Governance: independent (at least by the company’s definition) non-executive directors are now in the majority.
Not that this makes the slightest bit of difference to the group’s long-suffering, independent shareholders. They now face something of a Hobson’s choice. They can either sell the Indonesian mining assets that the group was set up to buy back to the Bakrie family on the cheap. Or they can sit and watch as shares floated at £10 are dragged down towards 10p as the company is engulfed by scandal.
London Mining Network’s report on the need for stricter regulation of mining companies listed in London is at http://londonminingnetwork.org/docs/lmn-the-case-for-stricter-oversight.pdf.