East Kalimantan to file legal charges against KPC
Saturday, April 28 2001 - 04:30 AM WIB
The East Kalimantan administration plans to file legal charges against PT Kaltim Prima Coal (KPC), a coal-mining giant operating in the province, via the Attorney General's Office for trying to delay divestment program, according to the local Jaya Post daily.
The paper quoted Speaker of the East Kalimantan parliament Sukardi Djawaputro as saying that the council would ask the provincial administration to immediately report KPC to the Attorney General's Office because the coal mining company had continued to reject requirement to divest up to 51 percent of its stakes this year.
The paper said that during the latest meeting on Friday in Jakarta between KPC and the East Kalimantan administration, the company had continued to reject the demand for the 51 percent divestment.
Sukardi said that according to the company's mining contract with the government, KPC must divest up to 51 percent shares, and based on the recent letter from the ministry of mineral resources and energy, the divestment program must be completed during the first quarter of this year.
He said that delaying the program would be equal to a corruption and crime act.
The East Kalimantan administration holds the top priority in purchasing the KPC shares. KPC is equally owned by Rio Tinto mining group and Beyond Petroleum.
"We have asked the (East Kalimantan) administration to immediately make the report to the Attorney General's Office. I think on Monday the lawyers will file the charges, unless there's a change of attitude from the KPC side," Sukardi said.(*)