Govt rejects George Soros? plan to take over KPC shares

The government will reject international financier George Soros? plan to take over the 51 percent stake of East Kalimantan-based mining company PT Kalimantan Prima Coal, Suara Karya reported on Tuesday.

Director general for geology and mineral resources at the Ministry of Energy and Mineral Resources Wimpy S, Tjetjep said in Jakarta on Monday that the take over of KPC shares by foreigners would be against the divestment procedure as stated in the contract.

He said that George Soros? plan to take over KPC shares would be rejected although the takeover would be made through local company.

Sources said that Soros through PT Intan Bumi Inti Perdana, which he jointly owns with businessman Harry Tanusubdibyo had allocated about $750 million in cash to finance the acquisition of KPC?s shares.

The company will cooperate with the East Kalimantan administration in the take over which would also involve Devid Salim, a close relative of tycoon Lim Sioe Liong.

According to Moetojib, the former chief of the national intelligence agency (Bakin) who is now the chief commissioner of PT Intan Bumi, the company and the local government had reached an initial agreement to take over KPC?s shares.

KPC, which is jointly owned by international mining giants Rio Tinto of Australia and BP Plc of Britain, is requested to sell up to 51 percent of its shares to local companies this year. The divestment requirement is part of the investment policy imposed on foreign mining companies. (*)