Kideco proposes 2002 divestment price

East Kalimantan based coal-mining company PT. Kideco Jaya Agung has submitted price for divestment of 44 percent of its shares year as required by coal contract of work (CCOW), a government official source said on Monday.

?The price valuation submitted by the company for this year is US$ 380 million for 100 percent of its shares, lower than last year?s valuation of $438 million. The government has not decided whether to agree with the price,? said the official. Last year, government and Kideco agreed to price entire stake of Kideco at $415 million.

Under the CCOW, Kideco must gradually divest up to 51 percent of shares to Indonesian owned entity after 10 years of production. In 2002, Kideco is required to divest 44 percent of its shares.

In 2001, Kideco is scheduled to offer 37 percent of its shares to Indonesian owned business. In December 2001 and is still in negotiation with several interested bidders.

If no deal were not reached for 37 percent share divestment, the company would then close the 2001 share offer and would begin negotiation with the government to decide new price for 44 percent share offer.

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 11.5 million tons of coal in 2002. (godang)