Mining Association urges E. Kalimantan to accept decision on KPC shares

Indonesian Mining Association chairman Benny Wahyu has called on the East Kalimantan provincial administration to fully accept the central government?s decision on the allocation of 51 percent stake in East Kalimantan-based coal mining firm PT Kaltim Prima Coal (KPC).

Benny said continuing to refuse the central government?s decision could cause the provincial administration involved too far in matters not part of its responsibility.

?The provincial administration?s task is to ensure good governance, and it should let business people do business,? Benny told Petromindo.Com. on Wednesday.

The central government on July 31 formally announced its decision to allocate a 31 percent stake in KPC to East Kalimantan and 20 percent to state company PT Bukit Asam. Earlier, KPC formally offered to sell 51 percent of its shares to the central government in accordance with its contractual obligations.

East Kalimantan however insisted to buy the entire 51 percent shares of KPC.

KPC, equally owned by world mining and energy giants Rio Tinto and BP Plc, operates a huge coalmine in Sangatta in East Kutai regency, East Kalimantan. (godang)