Local press criticizes KPC for being tightlipped over divestment plans

Thierry Brunner, general manager of coal mining giant PT Kaltim Prima Coal (KPC), was tightlipped when asked by the press over the company's divestment plans, the local East Kalimantan Suara Kaltim daily reported in its Tuesday edition.

"No comment, no comment," the paper quoted Brunner as saying.

The paper said that this kind of attitude could be a "boomerang" to the company as some people might take advantage of the situation.

The paper said that Brunner was only enthusiast to talk about the company's community development program.

KPC provided a financial sponsorship for some 150 students of the local University of Mulawarman on Monday.

Meanwhile, KPC external relations manager Usman Fatwa said that the quiet attitude of Brunner was because he was not in a position to answer the journalists question over the KPC divestment plans.

He said that the Sangatta operation was merely responsible for mining works.

He said that if reporters wanted information about the KPC divestment plans, it should be asked to the Rio Tinto office in Jakarta. Rio Tinto is the controlling shareholder of KPC.

There has been growing demands that KPC must surrender up to 51 percent stake to the local East Kalimantan administration this year. The company and the central government in Jakarta have earlier said that KPC was only obliged to divest up to 37 percent this year.

Separately, the head of the local office of the Ministry of Trade and Industry M. Yadi said that KPC was the largest exporter of the East Kalimantan province with total export of US$95.2 million.(*)