Riau coal miner gives up stake

Shareholders of Riau-based coal mining firm Riau Bara Harum plan to sell their stake at the mine, a government official said Wednesday.

Director of mining enterprises at the ministry of energy and mineral resources Mahyudin Lubis told Petromindo.Com that the company has offered to sell its stake to the government but said the government had declined the offer.

Riau Bara Harum, located in Riau province, is a second-generation coal contract of work (CCoW), under which the government has first right of refusal should the company intend to sell its stake to another party. The government usually turns down the offer to buy shares in CCoW holder.

Mahyudin did not say who the buyer(s) would be. ?I haven?t got the report,? he said.

According to Petromindo.Com data, the company is controlled individuals that control E. Kalimantan coal miner PT. Tanito Harum, namely the Barki family.

A Tanito Harum official earlier said the mine would commence commercial production late 2005, with output stabilized at 1 million tons per annum the following years. (godang)