KPC divestment to be completed end of this month

The Minister of Mineral Resources and Energy Purnomo Yusgiantoro has agreed to the demand of East Kalimantan province for coal mining firm PT Kaltim Prima Coal (KPC) to divest up to 51 percent of its stake this month, according to head of the East Kaltim provincial parliament Sukardi Djarwo Putro.

Sukardi was quoted as saying by the local Jaya Post daily that the KPC divestment would be implemented by the end of this month.

"The Minister has agreed to the demand of East Kalimantan that KPC must divest 51 percent stake worth around US$293 million. In fact, director general of mining (Surna T. Djajadiningrat) promised the divestment to be completed by the end of this month," he said.

But Sukardi did not clearly say whether KPC has also agreed to divest up to 51 percent stake. KPC has insisted that it only preferred to divest up to 33 percent as stipulated in the mining contract agreed with the central government. (*)