Due diligence team delays decision to pick KPC buyer

Government said on Tuesday that due diligence team on Kaltim Prima Coal (KPC) divestment had decided to delay announcement of successful bidder for 20 percent shares of KPC.

?The team initially scheduled to make decision today, but at the request of` PT Tambang Batubara Bukit Asam (PTBA), the team finally decided to postpone the decision,? said TA Nurwinakun, spokesperson of ministry of energy and mineral resources.

He said the team might make decision on October 25.

PTBA and state miner PT Aneka Tambang (Antam) are final candidates to acquire 20 percent shares of KPC.

Last August, the government decided that 31 percent of KPC shares would go to company endorsed by East Kalimantan and East Kutai regency administration, while 20 percent would go to state owned company. KPC, which is now equally owned by BP and Rio Tinto, is scheduled to divest 51 percent shares this year at US$ 822 million on 100 percent shares basis.

Thus far, East Kalimantan administration has not submitted its candidate to be scrutinized by due diligence team because its was still insisting to acquire the whole 51 percent of KPC shares. The deadline for due diligence is October 30.

East Kalimantan is backed by businessman David Salim, a nephew of Indonesian tycoon Liem Sioe Liong, also known as Sudono Salim, a long time business ally of former president Soeharto.

Petromindo.Com?s government and industry sources said that East Kalimantan is struggling hard to form joint venture company with whichever state owned company would be appointed to buy 20 percent stakes in order to gain majority control of the giant coal-mining firm. (godang)