PRESS RELEASE: S. Jakarta court defends authority over KPC case

On January 22 the district court of South Jakarta decided that the case filed by the East Kalimantan provincial administration (Pemprov Kaltim) falls within its jurisdiction.

The decision of the court dealt only with some preliminary legal issues. It does not address the substance of the case lodged by Pemprov Kaltim.

The decision is obviously a disappointment to Kaltim Prima Coal (KPC). However, KPC maintains that the allegations made by Pemprov Kaltim are baseless and intends to defend them to the full extent of the law.

KPC is considering an appeal against the decision and is preparing its substantive defence to the claims which it will then file with the court.

KPC operations will continue as normal.

KPC remains committed to fulfilling all of its obligations under its coal agreement with the central government and will continue to pursue the divestment process in an open and transparent manner in full accordance with the process lain out in the coal agreement.

For further information, contact Lex Graefe ? Rio Tinto, ph: (021) 5274208; or Peter Vider ? BP International, ph: 44-207-5797886. (*)