East Kalimantan government to meet KPC again over divestment plan
Friday, August 25 2000 - 03:30 AM WIB
The East Kalimantan administration and the local House of Representatives will meet with the giant coal mining firm PT Kaltim Prima Coal (KPC) again to negotiate the latter's divestment program.
The local Suara Kaltim daily quoted the parliament deputy speaker Kasyful Anwar As'ad as saying that the meeting was expected to be held on September 4.
Kasyful said that still insisted to have a 51 percent stake in KPC to gain control of the company to maximize the benefit for the people.
He said that the local administration would seek investors to help finance the acquisition of KPC.
Kasyful added that KPC was required to divest up 51 percent stake this year according to the mining contract of work signed with the government.
But so far, KPC management insisted that based on their understanding of the contract, the divestment requirement for this year was only up to 37 percent.
Suara Kaltim said that KPC had agreed to divest up to 44 percent as indicated recently by the director general of mining Surna T. Djajadiningrat. (*)