KPC says still willing to negotiate divestment despite overdue

Despite prolonged negotiation, East Kalimantan based coal miner PT. Kaltim Prima Coal (KPC) said it was still keen to proceed with divestment process and is still willing to talk with East Kalimantan province and East Kutai regency business units, which had been appointed by the government to buy 31 percent shares of KPC.

?Actually, under the Framework Agreement assignees had to accept the offer by October 31 last year and payment must be received by January 31 this year. The time for government of Indonesia (GOI) to assign KPC offer expired on October 28, 2002 and no assignment were made by then. Since no payment for any shares can be received by January 31, 2003, GOI sale process should have ended. But in this kind of process, you have to have a lot of flexibility,? said KPC president Noke kiroyan when addressing a seminar in Jakarta Tuesday.

GOI on November 12 last year assigned state coal company PTBA to buy 20 percent shares of KPC, while East Kalimantan regional governments business units were entitled to buy 31 percent.

?The FA permits KPC, after consultation with GOI, to offer 51 percent of KPC?s issued shares to other Indonesian participants before May 2003,? said Noke.

?Given that PTBA has already passed due diligence, KPC would be happy to continue the share offer process to PTBA, and KPC would also like to include the government and people of East Kalimantan and East Kutai under conditions stipulated in the FA.?

The government had been reportedly trying to extend the share divestment process for six months. Noke said there would be another meeting with the government on the issue next week.

Under the coal contract of work, KPC is obliged to sell 51 percent shares to Indonesian owned business entities. East Kalimantan with the back-up of businessman David Salim had been reportedly trying to control of KPC. (alex)