KPC to hold dialogs with E. Kalimantan govt officials and labor unions

PT Kaltim Prima Coal?s new president director Noke Kiroyan will hold dialogs with East Kalimantan?s district heads, council leaders and labor unions so as to enable them to have better knowledge about each other.

Rio Tinto, the holding company of PT KPC, on Thursday gave Noke the top position at that company, but he will resume his position only on December 1. Meanwhile, Noke will retain his post as chairman of Rio Tinto Indonesia.

KPC operates a giant coal in Sangatta, East Kalimantan, and is jointly owned by Anglo-Australian mining giant Rio Tinto and Anglo-American energy giant BP Plc.

Noke told reporters on Thursday evening that he would not make drastic changes at KPC and that he had yet to study about that company and seek more information about it from different parties.

The East Kalimantan provincial government has decided to file a 776 million-dollar lawsuit against KPC, saying the firm is dragging its feet on handing over a majority stake to Indonesian interests. Government officials argued that the local administration was suffering losses because of the delay in receiving proceeds from the divestment.

Meanwhile, KPC said recently the lawsuit as baseless and that it would be vigorously defended.

Noke said on Thursday that he would try his best to meet KPC?s production targets. It expects to produce 15 million tons of coal this year and would increase production to 17 million tons in 2002. (godang)