Govt to meet next week over KPC share price

The government is scheduled to meet on Tuesday to review progress over the controversial Kaltim Prima Coal (KPC) divestment program, according to a senior official.

Boni Siahaan, an official at the investment division of the directorate general of geology and mineral resources, said that the government was expected to decide its stance on the divestment price proposed by KPC so that by the end of the year a final draft on the divestment price could be reached.

A final agreement on the divestment program is expected to be hammered out by March 2002, after it was extended from the 2001 year-end initial target.

KPC, which is equally owned by Rio Tinto and BP Plc., is obliged to divest up to 51 percent shares to the East Kalimantan government.

But the two sides had long been in disagreement over the price. Reports have said that KPC wanted more than US$400 million for the 51 percent stake, while the East Kalimantan administration insisted a lower price of around $300 million.(Godang)