Sitrade hopes to sign KPC shares purchase agreement next month

PT Sitrade Nusaglobus is finalizing negotiation to purchase a 32.4 percent stake in East Kalimantan-based coal mining company PT Kaltim Prima Coal (KPC), and hopes to sign the sales and purchase agreement next month.

Herman Afif Kusumo, the president director of Sitrade, said in Jakarta on Wednesday that the company had reached an initial agreement to buy the 32.4 percent KPC shares for about US$399 million.

"We hoped we would be able to sign the deal in August, next month. We are still engaged in negotiations to get a better deal," he said. According to him, Sitrade had received approval from the Ministry of Energy and Mineral Resources and the Investment Coordinating Board (BKPM) to take over the 32.4 percent KPC shares.

Bumi Resources, as the majority shareholder of KPC, plans to sell its 32.4 percent shares in KPC as part of the mandatory divestment program.

Bumi Resources had already sold 18.6 percent shares to East Kutai regency's authority immediately after it took over the mining company two years ago from BP and Rio Tinto. It means that it needs to sell another 32.4 percent of the KPC shares to fulfill the mandatory divestment requirement.

Under the divestment program, Bumi Resources should divest up to 51 percent of KPC shares to local companies. (godang)