Billiton buying shares in RI coal firms
Thursday, August 31 2000 - 04:30 AM WIB
Britain based mining giant Billiton Plc. will hold majority shares in local mining firms PT Wirakaneo Coalindo and PT Taraco Mining, which are exploring for coal in East Kalimantan.
Billiton Indonesia's president Graham Chapman said in a statement to Petromindo.Com on Wednesday that the company had signed joint venture agreements with Wirakaneo and Taraco in September 1998 and July 2000 respectively.
But at this stage Billiton did not hold any shares in either company owing to the requirement to change the status of the companies from domestic investments to foreign investments.
Wirakaneo and Taraco are doing exploration in the Pasir and Kutai areas respectively.
"The process is now complete and the share transfer procedure is now commencing. Billiton will hold a majority interest in each company," Chapman said.
But he did not reveal the number of shares to be acquired by Billiton.
"Despite this, exploration has been continuing in both areas for sometimes under specific temporary arrangement but owing to the minimal infrastructures (exploration) is likely to be ongoing for several years to come, before any decision can be taken about possible mine development," he added.
Chapman made this statement to correct Petromindo's earlier report that Ingwe, which is affiliate of Billiton, had bought shares in Wirakaneo and Taraco.
According to Chapman, Ingwe Coal Corporation originally opened a representative office in Indonesia in 1996, but the company has since been effectively renamed Billiton Coal, the name Ingwe now only applying to operation in South Africa.
The representative office in Jakarta is now closed, all operations being conducted trough PT Billiton Indonesia, Chapman further said.
Coal director at the ministry of Energy and Mineral Resources Suyartono earlier said the share acquisition had been approved by the House of Representative, the President and the State Ministry of Investment and state enterprise development, but the ministry of energy mineral resources had yet to sign it.
Sources said the ministry of energy and mineral resources is waiting for the ministry of Law and Legislation (now the ministry of justice and human right) to approve the change of the status of Wirakaneo and Taraco from domestic investments to foreign investments, before signing the share acquisition. (Alex Ginting)