Govt offers KPC's shares to 10 companies
Wednesday, February 16 2000 - 04:00 AM WIB
Coal director at the Ministry of Mines and Energy Joko Tirtosoekotjo said on Tuesday the ministry had been offering 30 percent shares in coal company PT Kaltim Prima Coal to 10 Indonesian companies, including private companies, Bisnis Indonesia reported.
Joko said the 10 companies include state mining companies PT Aneka Tambang, PT Bukit Asam and PT Timah, but he did not name the remaining seven companies.
He said his office offered the shares on Feb. 11 and gave the companies until March 3 to submit their respective proposals.
Aneka Tambang, Bukit Asam and Timah had turned down the offer, while the other seven companies have yet to make decisions on the offer, Joko said.
He said aside from the ten companies, the East Kalimantan provincial administration and the Ministry of Finance had expressed interest to buy the shares.
However, the East Kalimantan had yet to specify the amount of shares it wanted to buy, Joko said.
He said the ministry had asked the province to make a proposal and seek approval from the provincial council.
Under the contract of work, KPC had to divest 30 percent of its shares in the giant coal mine in Sangatta, East Kalimantan to either the Indonesian government, companies and people March this year.
KPC is equally owned by British Petroleum and Ango-Australian firm Rio Tinto.
President of Rio Tinto Indonesia Noke Kiroyan said the divestment obligation of KPC would increase to 37 percent if it failed to sell 30 percent of its shares by the deadline. (*)