Negotiation over KPC divestment program to resume today

Negotiation between the ministry of mineral resources and energy with the shareholders and management of the giant coal mining company PT Kaltim Prima Coal (KPC) over the latter?s divestment program will resume Thursday, according to a East Kalimantan provincial legislator.

Agus Tamtomo, who heads the East Kalimantan legislative council special team on KPC divestment program, said that he was informed by the director general of mineral resources and geology Wimpy S. Tjetjep about the planned meeting with KPC.

?According to Pak (honorific) Wempy, the meeting will continue over the next following days. Based on past experience, it?s difficult to gather the management and shareholders of KPC in one occasion,? Agus was quoted by the local Kaltim Post daily as saying.

But did not said whether the East Kalimantan legislators would attend the meeting.

KPC shareholders which included Rio Tinto and BP, are obliged to divest a 51 percent stake in the coal giant to the East Kalimantan administration. But so far, KPC and the provincial government have not been able to reach an agreement over the share price. The negotiation process has been going for nearly two years.(*)