Study on establishing holding company for mining firms complete

The establishment of a holding company through the merger of three state-owned mining companies - PT Aneka Tambang (Antam), JSX-listed PT Tambang Batubara Bukit Asam (PTBA) Tbk. and JSX-listed PT Timah Tbk. ? is now close to realization as the government has received the result of the final study on the issue from a joint team of the three firms, Media Indonesia reported Tuesday.

?The concept (of the planned establishment of a holding company) has been submitted to the state ministry of enterprises. Now, let?s wait an approval from him (the minister) regarding the time when it (the planned establishment of a holding firm) will be materialized,? said deputy director for the mining strategic industry, energy and mining Roes Aryawijaya in Jakarta Monday.

Under the initial plan, the government establishes a holding company for the three state mining firms in March, 2006.

Apart from the ministerial decree from the state enterprises ministry, the setting up of the holding company also needs an approval from the finance minister and coordinating minister fro economy, according Roes.

Roes made it clear that the government?s move to merge the three mining firms would adopt a holding method through Indonesia Resources Company (IRC) to allow the three companies to operate as usual.

Meanwhile, state enterprises minister Sugiharto said that the three firms would be given one or two weeks to give presentations. ?If asked when will I give an approval? I will say that this will all depend on their readiness, especially in regard to whether they have identified resistance of change (as the possible impact of the merger) so that they can conduct damage control,? he said.

Meanwhile, PTBA secretary Milawarma said that the company, together with PT Antam and PT Timah, submitted the final study result on August 8, 2006. But he declined to disclose it. (*)