PTBA drops MHU acquisition plan

The government said on Thursday that state coal-mining firm PT. Tambang Batubara Bukit Asam (PTBA) had formally cancelled its plan to acquire troubled East Kalimantan coal miner PT.Multi Harapan Utama (MHU), after the latter failed to pay its arrears to the government and to contractors.

?PTBA had formally sent a letter notifying the cancellation of acquisition plan,? said Director General of Geology and Mineral Resources Simon Sembiring.

Sembiring went on to say that the government would terminate MHU?s operations should it failed to pay its US$8 million royalty arrears in one month.

PTBA earlier had requested the ministry of energy and mineral resources to delay MHU?s mining license revocation on the ground that PTBA might be able to pay the arrears should it acquire MHU?s shares. The government apparently agreed to PTBA?s request.

PTBA and MHU had been locked in negotiation for around 1 year.

According to Petromindo data, MHU, which produces 1.6 million tons of coal in 2003, is controlled by individuals such as Graeme Robertson, former president director of Adaro Indonesia and individuals that are connected to tycoon Liem Sioe Lion such as Ibrahim Risjad and Henry Pribadi.

None of PTBA?s and MHU?s officials are available to comment on the matter. (godang)