Govt okays Sitrade?s purchase of KPC shares

The government has completed study on PT Sitrade Nusaglobus, a little-known mining service company who had reportedly signed an agreement to acquire a 32.4 percent stake in PT Kaltim Prima Coal (KPC) from PT Bumi Resources, a government source said Tuesday.

?Principally, the government okays with the company (Sitrade). Sitrade has met the entire divestment requirement,? the source told Petromindo.Com.

The source added the directorate general of geology and mineral resources will officially issue a recommendation to the Investment Coordinating Board (BKPM), which would approve the share transfer, soon.

KPC's contract, signed in 1982, obliges the company to divest up to 51 percent of its shares to local investors, whether to the government -- local or central -- individual citizens of Indonesia or national companies.

The government and Bumi, have agreed to value the entire shares of KPC at US$1.452 billion.

KPC?s coal mine is located in Sangatta, East Kalimantan. The company planned to produce 32.86 million tons of coal this year. (godang)