Govt says state miners could buy KPC stake: Report

Government said on Monday it was studying the possibility of two state-controlled miners PT Aneka Tambang (Antam) and PT Batubara Bukit Asam buying a 51 percent stake in PT Kaltim Prima Coal (KPC), a report said on Monday.

State Enterprises Minister Laksamana Sukardi was quoted by Reuters as saying that the government was studying the possibility of coal miner Bukit Asam issuing convertible or exchangeable bonds overseas to finance the stake purchase to raise the value of the firm before a planned initial share offering later this year.

"We are planning to make Bukit Asam public through an IPO so we have to get something to make the share very attractive," he said.

He said there was also a possibility nickel and gold miner PT Antam could buy the stake in Kalimantan-based KPC -- owned by Rio Tinto Ltd and BP -- but did not elaborate.

Earlier this month Jakarta said it might buy the 51 percent stake but did not give details.

KPC and Rio Tinto have been at loggerheads with provincial officials over divestment terms and the latter have taken legal action entangling sale plans and threatening KPC's operations. (*)