KPC guarantees there would be no layoff despite takeover

President director of PT Kaltim Prima Coal (KPC), Noke Kiroyan, has guaranteed that there would be no lay off within the company despite the transfer of the ownership of the company to Bumi Resources from existing shareholders Rio Tinto and BP Plc.

"The takeover is only related to the share ownership (of Rio Tinto and BP Plc). So, KPC will structurally remain the same," he said on Tuesday.

He said that the existing management's commitment to keep all warkers was part of their commitment to maintain the performance of the company as one of the largest coal producers in the country.

According to Noke, KPC employs 5,923 workers comprising of 2,764 permanent workers, 2,781 sub-contractor workers. The company also hires 24 expatriates to fill in key positions in the management.

Publicly listed company Bumi Resources recently reached an agreement to take over the entire stake of Rio Tinto and BP Plc in KPC for US$500 million. Rio Tinto and BP holds 50 percent stake each in the company.

Asked if the change in the ownership would affect KPC operation, Noke said that he could not predict. "But structurally and geologically, there are no reasons for a change in the operation," Noke added.

According to Noke, the most important things are how to maintain the performance in the company like it is now so that the change in the company's ownership would not affect production activities. "If the production declines, it will bring loss not only to the company but also to the government and the people," he said.

He said as one of the largest coal producers in the country, KPC should be able guarantee the continued supply of its coal to its buyers. (Godang)