KPC operates normally amidst local govt?s blockade threat

East Kalimantan-based giant coal miner PT Kaltim Prima Coal (KPC) said on Tuesday its production activities were continuing normally despite threats from the provincial administration to blockade the firm?s facilities if it does not materialize its long-stalled divestment program by March 31.

?KPC is constantly hoping that all sides will honor the prevailing laws and regulations,? KPC?s spokesperson Bambang Susanto told Petromindo.com.

Bambang said his company had not asked security agencies to protect its facilities because the situation was still under control.

Equally owned by Rio Tinto and BP, KPC currently operates a vast mining site in Sangatta in East Kutai. It has an annual production of around 15.9 million tons, and exports most of its coal output.

Early this month KPC shareholders agreed with the Indonesian government to offer 51 percent of its shares to Indonesian investors at US$822 million on 100 percent basis by March 31,2002, the new deadline.

The East Kalimantan provincial administration had insisted to be treated as preferred buyer and had promised to withdraw its lawsuit against KPC and its shareholders who had allegedly slowed down the divestment process. (Godang)