Rio Tinto sells stake in Citra Palu Mineral
Thursday, March 15 2001 - 05:00 AM WIB
Anglo-Australian mining giant Rio Tinto Plc announced on Thursday that it had reached a "conditional agreement" with a foreign investors allowing the latter to buy the former's stake in PT Citra Palu Minerals (CPM), which is looking for gold in Palu, Central Sulawesi.
"The new foreign investor is seeking to the necessary formal government approvals.
"Rio Tinto has not yet received official notification from the government that the approval process has been completed. Rio Tinto's current understanding is that the approval process is still being considered by the government at both the central and regional levels," the company said in a statement.
Rio Tinto said the new investor was a "reputable" company, but it did not reveal the name.
A company source said the prospective buyer was based in Australia.
According to Rio Tinto, it has 90 percent shares in CPM in a partnership with Arlia Karyamaska, who holds the remaining 10 percent shares.
CPM, which received the contract of work (COW) from the government on March 17,1997, had found a gold reserve of about two million ounces in its contract area.
However, the government decided on Jan. 29, 1999 to designate the area, where the gold find is partly located, as a forestry park. This forced CPM to postpone activities in June 1999, Rio Tinto said. (Bodega)