Kideco expects divestment price agreed this month

Coal miner PT Kideco Jaya Agung said Monday that it expected to complete negotiation on the price of 37 percent of its shares that it was going to offer for divestment in 2001.

?We are now in talks with the ministry of energy and mineral resources and as soon as we have reached agreement on the price, we are going to offer the shares,? Kideco?s managing director Kim Dong Sook told Petromindo.com on a sideline of a seminar organized by Indonesian Coal Society.

Industry sources said state tin miner PT Timah, which is currently facing tin reserve depletion, might be interested to acquire Kideco?s stake. But a senior official at the ministry of energy and mineral resources Wimpy S. Tjetjep said earlier that in the era of regional autonomy, East Kalimantan government must be given first priority to acquire the stakes.

Under the Indonesian coal contract of work, foreign contractors are obliged to gradually sell 51 percent shares to Indonesian business entities at the price agreed by shareholders and the government.

In the fifth and sixth year after commercial production commence, coal contractors are obliged to offer 15 percent and 8 percent of their shares and then 7 percent annually until the tenth year.

Kideco is one of Indonesia?s top coal producers, operating a coalmine in Pasir regency, East Kalimantan.

The company, which is currently wholly owned by Sam Tan Co.Ltd of South Korea, plans to produce some 10 million tons of coal in 2001. (alex)