East Kalimantan denies reports of Soros involvement in acquisition of KPC

The East Kalimantan Governor Suwarna AF denied on Tuesday reports that international financier George Soros would be involved in the acquisition of shares in giant coal mining firm PT Kaltim Prima Coal (KPC).

Suwarna told the local Kaltim Post daily that the acquisition plan would only be participated by local companies.

"We have never considered asking foreigners to join the acquisition plan. KPC's divestment program is made to allow the locals to own the shares. There's no use of the divestment program if we ask foreigners to join the share acquisition," he said during a visit to the paper's office.

Suwarna was responding to reports that the East Kalimantan administration had clinched a deal with Soros to help the former in financing the acquisition of KPC shares.

Director general of mining Surna T. Djajadiningrat said on Monday that the government would annul the plans by East Kalimantan to acquire KPC if the province teamed up with a foreign investor.

Suwarna admitted that the administration would join hands with a third party to realize the acquisition plans, but the provincial government and the local House of Representatives had yet to decide the would be investor.

He said that the would-be investor would be a local one.

KPC is obliged to divest up to 37 percent stake this year according to its contract with the government. The East Kalimantan administration gets the top priority to acquire the shares. (*)