Kutai Kartanegara wants equal division of KPC shares

Kutai Kartanegara regent Syaukani HR has denied allegations that the regency had demanded 37 percent of the 51 percent stake in East Kalimantan-based coal miner PT Kaltim Prima Coal (KPC), East Kalimantan-based Kaltim Post daily reported on Monday.

Syaukani said over the weekend the 51 percent shares to be divested by KPC to Indonesian investors by end-June should be equally divided among all regencies in East Kalimantan Province.

?Any company or regency should not monopolize the share portion,? Kaltim Post quoted Syaukani as saying.

Earlier reports said the Kutai Kartanegara administration had demanded no less than 37 percent shares of KPC because the regency and East Kutai, where KPC?s coalmine is now located, constituted one regency when KPC opened its coalmine. Meanwhile, East Kutai still insists that it get no less than 60 percent of the 51 percent stake in KPC.

The government and KPC's shareholders have agreed on an US$822 million valuation of the KPC entire operation.

KPC operates a coalmine in Sangatta District in East Kutai with annual output of 17 million tons. Anglo Australian mining giant Rio Tinto and Anglo American oil and gas company BP Plc equally own KPC.

Several state companies and private investors have also expressed their intention to buy the 51 percent shares of KPC. (*)