Govt, KPC agree on criteria of KPC share buyers

Senior government officials and top executives of East Kalimantan-based PT Kaltim Prima Coal (KPC) on Monday agreed on criteria of buyers of the 51 percent stake in the country?s most profitable coal mining firm, according to a well-placed government official.

?The two sides agreed on the criteria of buyers eligible to purchase KPC shares,? secretary of the geology and mineral resources directorate general of the Ministry of Energy and Mineral Resources, R. Sukhyar, told Petromindo.Com.

Sukhyar attended the meeting at the Ministry of Energy and Mineral Resources which was also participated in by senior government officials like the ministry?s secretary general Djoko Dharmono and KPC top executives including director Lex Graefe who is also president director of Rio Tinto Indonesia.

World mining and energy giants Rio Tinto and BP PLC equally own KPC which operates a huge coalmine in Sangatta in East Kutai regency, East Kalimantan.

Sukhyar however did not mention the criteria agreed on in the meeting.

Monday?s talks followed up on KPC?s formal offer on July 31 to sell 51 percent of KPC shares to Indonesian investors through the central government. The central government formally announced on the same day that 31 percent of KPC shares was offered to the East Kalimantan provincial administration, while the central government retained 20 percent, which earlier reports said as would be sold to state coal miner PT. Tambang Batubara Bukit Asam.

Sukhyar said participants in the meeting also agreed that due diligence would be conducted on investors who would offer bid to purchase KPC shares.

Graefe said it was a good meeting. ?We are happy with the meeting,? he told Petromindo.Com.

Meanwhile, the government?s lawyer for KPC, Sutoyo Sutejo, said the two sides had also agreed that the government would provide legal protection for KPC against any lawsuit filed against it during times of KPC share divestment. (godang)