18 parties invited to bid 34% of Kideco?s shares

East Kalimantan-based coal mining firm Kideco Jaya Agung said Tuesday it had invited around 18 parties to bid for 34 percent of its shares as apart of its divestment program.

?We have offered our shares to some 18 parties like central government, East Kalimantan provincial administration, regencies in East Kalimantan including Pasir where our mining operation is located, coal miner PT Tambang Batubara Bukit Asam, tin miner PT Timah, general mining firm PT Aneka Tambang, and other Indonesian companies,? Kideco?s managing director Kim Sung Kook told Petromindo.Com.

Kim said the company also invited two other companies, PT Sumber Mitra Jaya and PT Muji Inti Utama, which recently acquired 5 percent each in Kideco. Muji Inti Utama is an affiliate of coalminer PT Gunung Bayan Pratama.

Kideco?s contract of work obliges it to gradually divest up to 51 percent of shares to Indonesian owned entities after 10 years of commercial production. In 2002, Kideco is required to divest 44 percent of its entire shares.

?Thus far, two companies have shown their interest,? Kim said without naming the companies, while adding that the bid would be closed by March 28.

Elsewhere, Kim said the company expected the purchase agreement with Sumber Mitra and Muji Inti to be completed by end of this month.

Kideco is one of Indonesia?s top coal producers, operating a coalmine in Pasir regency, East Kalimantan. The company planned to produce some around 12.5 million tons this year. (alex)