BHP values Arutmin at US$ 252 million

Australian business group BHP Pty Ltd, which has to divest 31 percent shares in coal mining company PT Arutmin Indonesia this year, has valued the coal company at US$252 million, according to a senior official at the ministry of energy and mineral resources.

?BHP has reported to the ministry that the value of 100 percent shares in Arutmin was $252 million. We are now evaluating the valuation,? director general of geology and mineral resources Wimpy S. Tjetjep told Petromindo.Com recently.

But, Arutmin has yet to specify the exact value of the 31 percent shares it has to divest this year, said Wimpy.

Under the contract, 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.

According to Wimpy, BHP?s obligation of divesting 51 percent of its shares in Arutmin was due last year. But, since the company had earlier sold 20 percent shares to Indonesian firm Bakrie Brothers, the divestment obligation had been reduced to 31 percent.

BHP is however still offering the 31 percent shares as thus far no buyers had been interested to buy the shares, Wimpy said.

Arutmin, which operates the coalmine in South Kalimantan, is the country?s fourth largest coal producer with the output of nine million ton in 2000.

Wimpy further said that other coal companies, PT Kideco Jaya Agung and Adaro Indonesia, must also divest 37 percent and 4 percent respectively, of their shares this year. (alex/Godang)