Gov?t appoints independent valuer for KPC divestment

Government said on Monday that it had formally appointed local securities house Bahana Securities independent valuer for East Kalimantan based coal mining giant PT Kaltim Prima Coal (KPC) divestment.

Wimpy S. Tjetjep, director general of geology and mineral resources at the ministry of energy and mineral resources told Petromindo.com in an interview that Bahana was formally appointed in January 4, 2002.

?The fee was agreed at US$250,000 and would be charged to whomever would later buy KPC shares,? he said.

KPC is scheduled to offer 51 percent of its shares to Indonesian owned business entities in 2001. The offer for 2001 divestment would be closed at March 31, 2002.

Central government and KPC shareholders had been at odds in determining KPC share price, and according to coal contract of work, whenever disagreement over divestment price occurred, each party should appoint independent valuer to determine the price. If by then agreement cannot be reached, both parties would then appoint one valuer.

KPC would likely retain the service of international financial consultant Solomon, Smith and Barney, whom it had earlier employed to determine the initial price of KPC shares at earlier stage of negotiation. (alex/godang)