Government finalizes plan to set up mining holding company

The government is finalizing plan to set up a holding company for state-controlled mining firms, which will eventually acquire shares to be divested by gold and copper giant PT Freeport Indonesia, Kontan reported on Wednesday.

The paper said that three state-controlled mining firms including coal miner PT Bukit Asam Tbk (PTBA), tin miner PT Timah Tbk, and mining firm PT Aneka Tambang Tbk (Antam) are scheduled to hold separate extraordinary shareholders meeting on November 29 to seek approval for the transfer of the government shares in the three IDX-listed firms to state-owned aluminum maker PT Indonesia Asahan Aluminium (Inalum), which will become the holding company.

This is seen as the first step toward the creation of the holding company. ?The holding company will be set up this month,? said Ricky Gunawan, Corporate Secretary of Inalum to Kontan.

He said that one of the immediate actions of the holding company would be to acquire the 41.36 percent shares to be divested by gold and copper giant PT Freeport Indonesia.

Corporate Secretary of PTBA, Suherman said that the holding company can only be set up after the required government regulation has been issue. He got information that the government regulation is expected to be issued before November 29. He added that if the regulation has yet to be issued by November 20, the planned extra ordinary shareholders meeting would have to be postponed to December. (*)