E. Kalimantan, central govt leaders to hold talks over KPC divestment

East Kalimantan provincial government leaders are scheduled to hold talks this week with central government officials over the divestment of a 51 percent stake in coal mining giant PT Kaltim Prima Coal (KPC), East Kalimantan-based Kaltim Post daily reported on Tuesday.

Sjafran, East Kalimantan provincial secretary, declined to reveal the details of the subject matter to be discussed between the two parties.

?Hopefully, the meeting will take place this week as planned. But we are still awaiting an invitation from Jakarta,? Sjafran told Kaltim Post.

The East Kalimantan administration insists that it become the preferred bidder for the 51 percent shares of KPC, the world?s largest coal mining firm.

The share divestment, which is mandatory as mentioned in KPC?s contract, is planned for end-June. Only Indonesian parties are allowed to buy the 51 percent stake.

Meanwhile, the central government and several private investors have also planned to purchase the KPC shares.

KPC operates coalmines in Sangatta District in East Kutai, East Kalimantan. It has an annual production of around 15.9 million tons of coal, and exports most of the coal output.

World?s energy giants Rio Tinto and BP Plc equally own KPC. (*)