PT Timah plans to take over Arutmin shares
Monday, September 17 2001 - 02:54 AM WIB
Sources told the daily that the tin mining company, which is the largest tin producer in the world, had formally submitted its application at Director General of Geology and Mineral Resources Wimpy S. Tjetjep at the Ministry of Energy and Mineral Resources to take over the coal mining?s stake
PT Timah submitted its application two weeks ago but it had so far received no response from the government. ?In realizing its plan, Timah had expressed its interest to take over 80 percent of Arutmin stake. But Wimpy has not yet given a response,? the source added.
PT Arutmin, which operates a coal mining concession in South Kalimantan, is 80 percent owned by BHP-Billiton of Australia and 20 percent by local partner Bakrie and Brothers.
BHP-Billiton plans to sell its 80 percent in the coal mining company. 31 percent of the 80 percent stake will be sold under the government?s mandatory divestment program.
Besides Arutmin, PT Timah has also expressed its interest to take over a coal mining company owned by PT United Tractors in Berau, East Kalimantan.
Several local companies including Bakrie and Brothers have expressed their interest to buy BHP-Billiton?s stake in Arutmin. Although Bakrie has a pre-emptive right to buy the shares, the company has been given a cool response from BHP-Billiton to take over the stake. (*)