Bakrie, BHP-Billiton tightlipped on Arutmin divestment

Indonesian financially troubled conglomerate Bakrie Group and BHP-Billiton remained silent over the latter?s plant to divest its stake in South Kalimantan coal venture, PT Arutmin Indonesia.

After attending a meeting between Bakrie, BHP-Billiton and director general of energy and mineral resources over Arutmin divestment plan Wednesday, Andrew Wilson, BHP-Billiton Indonesia president told Petromindo.com that he could not comment on the meeting.

?We?ll se later,? said Aburizal Bakrie, Bakrie Group boss when asked about its intention to buy 80 percent stake in Arutmin.

Bakrie Group, despite troubled financial condition, is reported to be interested in acquiring 80 percent stakes in PT Arutmin, which is owned by BHP-Billiton.

Bakrie has already owned 20 percent of Arutmin shares.

Meanwhile, director general of geology and mineral resources Wimpy S. Tjetjep said that as far as the government was concern, it would only negotiate the price of the 31 percent divestment in Arutmin Indonesian business entity as required by coal contract of work.

?What the government is doing right now is to negotiate the divestment price of the 31 percent stakes in Arutmin as stipulated by coal contract of work. If Bakrie wants to buy more than 31 percent, its their own business, the government can not interfere,? said Wimpy

Under the coal contract of work, most coal contractors, including Arutmin, has to sell up to 51 percent of its shares to the Indonesian government, state companies, Indonesian-controlled private companies or Indonesian citizens after ten years of production.

BHP Billiton, as foreign holder of Arutmin has to divest 31 percent of its stake this year.

Wimpy went on to say that the government and BHP-Billiton had almost finalized the price of Arutmin divestment.

?It seems that we have reached understanding with BHP-Billiton that the entire shares in will be a little over US$ 200 million,? said Wimpy

Earlier, ministry of energy and mineral resources said that BHP-Billiton valued the entire shares of Arutmin at US$ 252 million.

Arutmin is the country?s fourth largest coal producer with the output of nine million tons in 2000. (alex/godang)