Feasibility study on consolidation of three state mining firms to be completed in June

The feasibility study on the planned consolidation of three state-owned mining companies ? PT Tambang Timah Tbk, PT Aneka Tambang Tbk (Antam) and PT Tambang Batubara Bukit Asam Tbk -- will be completed in the next five months, the Investor Daily Indonesia newspaper reported in its Thursday edition.

The study is being conducted by the Australia?s Citi group, a financial advising company.

After the completion, the study report will be submitted to the Office of the State Minister for State Enterprises.

Antam?s company secretary Ashur Wasif said Citi group began its work in January in 2006 and the result will be ready at the latest June 2006.

Ashur said that three state mining companies will not be merged into one entity, but the present status of the companies will maintained.

?The truth is that the establishment of a new holding mining company with a mission to synergize the three companies,?Ashur told the Investor Daily in Jakarta on Wednesday.

He also said that the presence of new holding company later will make the three companies more efficient and effective from the points of view of marketing, distribution, exploration and the application of information technology.

The new entity, Ashur said,will hopefully create additional value for the three companies. (*)