Antam suspends plan of restructuring IARL

State-owned mining company PT Aneka Tambang Tbk (Antam) said on Wednesday it had suspended its plan of restructuring its Canada-based subsidiary International Antam Resources Ltd (IARL), Tempo News Room reported.

The restructuring process would cover the transfer to Antam of IARL?s mining assets in Indonesia, and, in return, IARL would be freed from paying debts of US$1.3 million to lenders which had special connections with Antam. IARL is listed on a Canadian bourse.

?Based on due diligence reports, Antam?s board of directors decided to suspend the restructuring plan,? Winardi, Antam?s official in charge of investor relations, told Tempo News Room.

Winardi said the restructuring plan suspension had been due to several problems faced by Antam. He did not elaborate however.

He said he had no idea when the restructuring plan would materialize, and that it could not be carried out in 2003.

Antam president director Dedi Aditya Sumanagara said earlier they would have to study various aspects before deciding the right time for restructuring IARL. He added the plan had to be approved by Antam shareholders in its general shareholders meeting.

Earlier reports said Antam, which is listed on the Jakarta Stock Exchange and an Australian bourse, had planned to sell a 62 percent stake in IARL which holds a license to mine for gold in Cikadang, West Java. (*)