Kideco to offer 37 percent share this year

Coal mining firm PT Kideco Jaya Agung plans to offer 37 percent of its shares this year, as required by the government, according to a company official.

?We have submitted our proposal regarding the company?s valuation to the government and they asked us to do some minor changes on it. I think we can finalize the proposal by the end of this year.? Ali Patan, Kideco?s general affair manager told Petromindo. Com on the sidelines of a seminar Monday.

Under the coal contract of work, Kideco is required to offer 37 percent of its shares to Indonesian business entity in 2001. The price of 37 percent stake will be decided by shareholders and the government.

Ali, however, did not disclose the proposed divestment price.

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.

Kideco, which is 100 percent owned by South Korea?s Sam Tan Co. Ltd operates a coal mine in Pasir regency, South Kalimantan, with this year?s planned production amounting to 9.5 million tons. (alex)