KPC says E. Kalimantan govt civil suit baseless

Giant coal mining firm PT Kaltim prima Coal (KPC) said on Wednesday that the East Kalimantan Regional Government had filed a civil suit with the District Court of South Jakarta in relation to the matter of the KPC Divestment. The claim has been made against KPC, its shareholders, some of its directors and its legal advisers.

Damages of US$772million and legal costs of US$4million and seizure of the Company?s and other defendants? assets are being sought by the East Kalimantan Regional Government.

?KPC believes that the claims are baseless and intends to defend them vigorously to the full extent of the law. The firm of Lubis, Santosa and Maulana has been retained to act on behalf of KPC and its shareholders and named directors in this matter,? said the company in a statement.

KPC and its shareholders believe that the action taken by the Regional Government will cause concern to all existing and potential investors in East Kalimantan specifically and Indonesia as a whole, and may deter future investment in the country,? the statement added.

For its part KPC remains committed to fulfilling all of its obligations under the Coal Agreement and will continue to pursue divestment in an open and transparent manner fully in accordance with the process laid out in the Agreement, said KPC.

KPC is equally owned by Rio Tinto and BP Plc. (alex)