Banpu?s Centralink to bid for KPC shares

Mining firm PT Centralink Wisesa, which had entered into a joint venture with Thailand?s energy conglomerate Banpu Plc, has expressed interest to buy 51 percent shares of East Kalimantan-based coal mining giant PT Kaltim Prima Coal (KPC), local daily Kaltim Post reported on Thursday.

The Centralink management had early this month sent a letter to East Kutai regent Awang Faroek Ishak to convey their intention to purchase KPC shares, the official said on Wednesday.

KPC operates a huge coalmine in Sangatta in East Kutai, East Kalimantan. Its shareholders, Rio Tinto and BP Plc, had agreed with the Indonesian government to sell 51 percent of KPC shares to Indonesian investors by end-June. The share divestment is obliged by KPC?s contract.

Centralink told Awang that it would hand over 17 percent of the 51 percent shares of KPC to East Kalimantan if it succeeds to purchase them. The company also promised to develop educational facilities in the province.

Centralink owns four coalmines in Indonesia through four Indonesian companies namely PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Barasentosa Lestari and PT Kitadin Corporation. They operate in South Sumatra and East Kalimantan.

The company was among several private investors and state companies which had expressed interest to buy KPC shares. Among the private investors were PT Nusantara Energy, PT Bumi Resources Tbk, PT Batubara Borneo Batuah, PT Capital Securitas and PT Intan Bumi Inti Perdana.

Meanwhile, the sate companies intending to buy KPC shares include coalminers PT Aneka Tambang and PT Batubara Bukit Asam, tin miner PT Timah Terbuka and electricity company PLN.

Nearly all of the five private investors had promised to hand over to East Kalimantan between 10 percent and 12 percent of the 51 percent shares of KPC if they succeed to purchase the shares. They also promised to develop community development programs in the province. (*)