KPC wants divestment requirement to be met before March 31

The president director of PT Kaltim Prima Coal (KPC), Noke Kiroyan, said that all the requirements that should be met by bidders for the company?s 51 percent stake should be met before March 31, Neraca daily reported on Saturday.

He said that although the company?s shareholders and the government had agreed on the price of the 51 percent share, the divestment program could not be carried out until the East Kalimantan administration withdrew its legal suit against the company.

In addition such a problem, the divestment should be open to all bidders, not exclusively to the East Kalimantan administration, he said. He also added that if the East Kalimantan administration is interested in buying the 51percent stake, the provincial government should not involve foreign companies in the bidding.

The East Kalimantan government last year filed a legal suit against KPC for allegedly barring it from bidding the company. The local government said that the high price imposed by KPC is one of indications of the company?s efforts to prevent it from joining the bidding.

Last month, KPC, which is equally owned by Rio Tinto and BP, agreed to lower the value of KPC?s entire stock to US$822 million, or $419.22 million for the 51 percent stake of the company.(*)