EXCLUSIVE: Casey Board to determine KPC divestment obligation
Wednesday, January 24 2001 - 04:30 AM WIB
The Indonesian government has agreed with coal mining company PT Kaltim Prima Coal (KPC) in East Kalimantan to appoint American independent law firm Casey Board to determine the amount of divestment obligation of the coal company, a senior official at the ministry of energy and mineral resources said.
"The government and KPC will equally share the payment of the fee for the independent lawyer," director general of mining Surna Tjahja Djajadiningrat told Petromindo.Com on Tuesday after a leader meeting at the ministry.
He however did not specify the amount of fee demanded by the law firm.
The law firm is assigned to determine the amount of shares which KPC has to be divest this year under the contract of work.
The appointment of the American law firm followed disagreement between the Indonesian government, KPC and the East Kalimantan provincial administration about the amount of shares to be divested by the coal company.
Under the contract of work, KPC has to offer up to 51 percent of its shares to the Indonesian government, state companies, private companies and citizens.
Minister of Energy and Mineral Resources Purnomo Yusgiantoro earlier said KPC maintained it had to divest only 37 percent shares until last year, but the Indonesian government and the East Kalimantan provincial administration respectively insisted that the company had to divest 44 percent and 51 percent that year.
East Kalimantan is interested to buy all the shares. (Epin)