Problems Chinese and British investors face.
Chinese investments in Burma
U/m extracted from BBC report:
– China has nearly $14bn of interests in Burma – one third of all foreign investment in the country
– About US$13bn of that has been invested since 2008
– Most investments are in hydro-electric power, oil and gas, mining, jade and teak
– Critics say a US$2.5bn project for twin oil and gas pipelines from the Bay of Bengal to western China will provide China with cheap energy while Rangoon continues to suffer power cuts
– In 2011 Burma halted a hydropower project, the Myitsone dam on the Irrawaddy river, which would have created a reservoir bigger than Singapore.
– There is a major row between villagers and a mining project that the Chinese have an investment in. The copper mine, is a joint venture between China’s Wanbao company – a subsidiary of the arms manufacturer, Norinco – and the business arm of the Burmese military,People have badly hurt protesting against the US$1bn expansion of thr copper mine.
Corporate governance row continues in Indonesia
Coal miner Bumi has said it is unable to substantiate claims of potential financial and other irregularities at its Indonesian operations.
Bumi is facing a battle for control after agreeing to a shareholder vote that will decide the future of the majority of its board members.The vote will take place in February, at a date to be named.
Nathaniel Rothschild, co-founder of Bumi, had demanded the vote in an attempt to return to the firm’s board. Mr Rothschild wants to oust 12 of the 14 board members and bring in new ones in an effort to turn the firm around.
He had quit the board last year amid a row with Indonesia’s Bakrie family.
Bumi owns a stake in key Bakrie assets and there have been tensions between the two over potential irregularities at one of the Bakrie firms.
The dispute revolves around Bakries’ Indonesian firm PT Bumi Resources, in which Bumi owns a 29% stake.
Mr Rothschild had called for a radical clean-up at the firm in 2011, leading to relations between the two being soured. Last year, Bumi began an inquiry into what it said were “potential financial and other irregularities” at the firm.
Then, the Bakrie family offered to buy back its assets from Bumi for an estimated $1.4bn (£870m) and split from the firm.
However, Mr Rothschild said the proposal was “not in the interests of minority shareholders” and resigned from the board.
The deteriorating relations between the two key shareholders have stoked fears about the future of the firm and hurt its share price. Its shares have plunged more than 65% in the past 12 months.
Bumi has also been hurt by a drop in coal prices, which has hurt its earnings and forced it to review its expansion plans.