Bukit Asam studies possibility of buying Kideco shares

State owned coal producer PT Tambang Batubara Bukit Asam (PT BA) is studying the offer to buy 44 percent of shares that would be divested by Korean joint venture coal mining company PT Kideco Jaya Agung as part of its mandatory divestment program, Bisnis Indonesia reported on Saturday.

PT BA?s president Ismet Harmaini said in Jakarta on Friday that the company would take at least a month to consider whether or not the South Sumatra-based coal mining operator accept the offer to buy Kideco?s shares.

Kideco, which is owned by South Korean firm Samtan Co. Ltd, began its commercial production in its coal mining site in East Kalimantan in 1993, plans to sell 44 percent of its shares as part of the mandatory requirement. The 44 percent shares will be sold at is par value of about US$165.4 million.

PT BA is also interest to buy 20 percent of the 51 percent shares that would be divested by the East Kalimantan-based coal mining operator PT Kaltim Prima Coal, also as part of the company?s divestment plan. The other 31 percent shares would be sold to the East Kalimantan provincial government. (*)