Govt extends KPC divestment deadline
Thursday, March 9 2000 - 02:15 AM WIB
The government has extended the deadline of a 30 percent divestment program of foreign coal mining firm PT Kaltim Prima Coal (KPC) into April, according to a senior official at the Ministry of Mines and Energy.
Unit head of the coal directorate Suyartono said on Wednesday that the extension was made after the East Kalimantan administration indicated its seriousness to purchase the 30 percent stake.
"Because they want to buy the KPC share we extended the deadline by a month," he said.
Suyartono said that the East Kalimantan administration must prove that it has the financial resources to purchase the 30 percent stake for US$175 million.
He said that the East Kalimantan administration had indicated that it even interested to purchase up to 51 percent stake.
He said that the East Kalimantan government plans to invite foreign investor to participate in financing the purchase.
KPC was initially obliged to divest 30 percent of its shares by March 3. The company started to sell the stake in early December. But many have turned down the offer because it was deemed expensive. (*)