Govt, Kideco settle divestment price

Government and East Kalimantan-based coal mining firm Kideco Jaya Agung had agreed on the price base of the company?s 2002 divestment at US$ 367.7 million on 100 percent basis, down from $415 million valuation in 2001, a government official said Tuesday.

?The price is lower because coal price assumption for 2002 is lower,? Director of Mining and Coal Enterprise at Directorate General of Geology and Mineral Resources Mahyudin Lubis told Petromindo.Com.

Under the coal contract of work, Kideco Jaya Agung, a wholly owned subsidiary of South Korea?s Sam Tan Corp. is obliged to sell 37 percent of its shares to Indonesian-owned business entities in 2001, and another 7 percent the following year.

For 2001 divestment, two Indonesian companies, namely, Sumber Mitra Jaya and Muji Inti Utama each had signed sales and purchase agreement to buy 5 percent of the company?s share, and therefore, Kideco is obliged to offer 34 percent of its share for sale.

Earlier, government said that Kideco had offered to sell its 34 percent to several business entities including PT. Tambang Batubara Bukit Asam, Sumber Mitra Jaya and Muji Intio Utama, East Kalimantan provincial government, and Pasir regency administration, where the mine is located.

Kideco is one of top Indonesian coal miner, producing around 11 million tons last year. (godang)