KPC on track to meet production target

East Kalimantan-based coalminer PT Kaltim Prima Coal (KPC) said Tuesday its production activities had been running normally despite problems with its share divestment program, company president Noke Kiroyan told Petromindo.com.

?So far, our coal production has continued normally,? Noke said.

Noke said KPC?s production target of 18 million tons this year could be met if East Kalimantan?s climate remains in normal condition, and if there is no workers demonstration.

Demonstrations against government policies on KPC share divestment plan had taken place in East Kalimantan this year.

The East Kalimantan provincial administration had demanded a greater portion of KPC shares formally offered last year to Indonesian investors.

KPC last year offered 51 percent of its shares to Indonesian investors through the government. Of the 51 percent shares, 31 percent was allocated to East Kalimantan and 20 percent to state coalminer PT Tambang Batubara Bukit Asam.

KPC share divestment had been planned for completion by January 2003, but thus far, no sign that the divestment dispute could be resolved soon. (godang)