KPC?s sale is legal: Lawyer

A respected lawyer said on Thursday that the deal allowing PT Bumi Resources to acquire the coal mining firm PT Kaltim Prima Coal (KPC), from Anglo-Australian mining Rio Tinto and Anglo-American energy firm BP Plc was legal.

Todung Mulya Lubis, who represents KPC in its protracted dispute with the East Kalimantan provincial administration over the divestment of company shares, said Bumi was going to take over KPC by buying out two overseas holding companies belonging to the BP Plc and Rio Tinto firms.

Todung said it was and off-shore transaction and outside Indonesia?s jurisdiction.

?It did not violate any laws (to sell shares),? Todung said on Thursday as quoted by The Jakarta Post.

In addition, the sales would not negate the coal agreement between KPC and the government. This means KPC?s contractual obligation ? to divest 51 percent of its shares to the Indonesian government or Indonesian-controlled firms?still exists.

?The offshore agreement is irrelevant to the coal agreement. So, the obligation to sell 51 percent shares remains,? Todung said. (*)