Govt not yet decided on buyers of KPC shares: Purnomo

The government has not yet decided whether state enterprises will purchase a 51 percent stake in East Kalimantan-based coal mining giant PT Kaltim Prima Coal (KPC), Minister of Energy and Mineral Resources Purnomo Yusgiantoro was quoted as saying on Friday.

?Our team has not yet decided whether the shares be sold to state enterprises or any other parties. The team has yet to conclude its deliberation on that matter,? Purnomo told reporters, according to East Kalimantan-based Kaltim Post daily.

The minister denied reports that KPC had offered 51 percent of its shares to state enterprises. He argued the share offer could be made only after the East Kalimantan administration has dropped its request to the South Jakarta district court to seize Indonesian assets of KPC?s shareholders Rio Tinto and BP.

East Kalimantan insists that it is entitled to purchase 51 percent stake in KPC which operates coal mines in Sangatta in the province?s East Kutai Regency. Accusing KPC of trying to block it from purchasing the stake, East Kalimantan last year filed a suit in the South Jakarta court. In March, the court issued an injunction to seize the Indonesian assets belonging to Rio Tinto and BP.

Meanwhile, several state and private enterprises have expressed their intention to buy KPC shares which are set to be divested end-June.

The state firms include miners PT Aneka Tambang Tbk and PT Pertambangan Batubara Bukit Asam (PTBA), and electricity company PLN. Meanwhile, the private investors include PT Nusantara Energy, PT Bumi Resources Tbk, PT Batubara Borneo Batuah, PT E-Capital Securitas and PT Intan Bumi Inti Pradana.

The government in March agreed with Rio Tinto and BP on a US$822 million valuation of the KPC entire operation. But the shareholders insisted that they could not sell KPC shares until the legal fight with East Kalimantan was resolved.

Meanwhile, Kaltim Post also reported that Purnomo will on Wednesday meet with East Kalimantan provincial officials over the divestment of KPC shares.

"Frankly speaking, it would embarrass me if the KPC share divestment fails," Purnomo was quoted as saying by Amir P Alie, a member of the 63-delegation from East Kalimantan who met with the minister in Jakarta on Friday.

The East Kalimantan officials will be from the provincial administration and the East Kutai regency administration. (*)