PTBA turns down the offer to buy Kideco?s shares

State owned coal mining company PT Tambang Batubara Bukit Asam Tbk (PTBA) has formally rejected the offer to take part in the mandatory divestment of East Kalimantan-based Kideco Jaya Agung coal producer, Koran Tempo reported on Monday.

PTBA?s corporate secretary Milawarma said in Jakarta on the weekend that the company?s board of directors turned down the offer to buy Kideco?s 34 percent share for "internal reason" and that the company would instead focus on its plan to buy the 20 percent of PT Kaltim Prima Coal, which also operates massive coal mine areas in East Kalimantan.

Besides PTBA, Kideco also invites other companies including PT Timah, PT Aneka Tambang to bid for its shares.

Kideco, which is owned by South Korean firm Samtan Co Ltd, began its commercial production in its coal mining site in East Kalimantan in 1993. The company plans to sell 34 percent of its shares as part of the mandatory divestment requirement. About 10 percent of Kideco? shares had been sold to a local company in the earlier stage of the divestment program.

PTBA has agreed to buy 20 percent of the 51 percent shares that would be divested by the East Kalimantan-based coal mining operator PT Kaltim Prima Coal, also as part of the company?s divestment