E. Kalimantan demonstrators to stage rally against decision on KPC share allocation

Some 600 people have planned to hold a rally in Sangatta in East Kalimantan on Thursday to protest the central government decision to allocate to the province only 31 percent of the shares of coal miner PT Kaltim Prima Coal (KPC), a company executive told Petromindo.com on Thursday.

KPC?s communications general manager M. Chairul said police and army troops were still found standing guard in several places on Thursday in Sangatta, the capital of East Kutai regency. On Wednesday some 500 protesters staged rally in the town to air similar protest.

The central government on Wednesday decided to sell 31 percent of KPC shares to East Kalimantan provincial administration and East Kutai regency government, while the central government would retain the remaining 20 percent. It said that it was up to the East Kalimantan government and East Kutai administration to divide the 31 percent stake between themselves.

East Kalimantan insisted that it become the preferred bidder for the entire 51 percent of KPC shares.

KPC, equally owned by Rio Tinto and BP PLC, operates a huge coalmine in Sangatta and has capacity to produce more than 15 million tons of coal annually.

Earlier, several mass organizations in East Kalimantan threatened to block KPC?s coal shipment from Sangatta if the province did not get the entire 51 percent stake in KPC. (godang)