The planned merger of three state mining firms being studied

The planned merger of three state mining companies PT Aneka Tambang (Antam), PT Tambang Timah and PT Batubara Bukit Asam is currently under a study by international financial advisor Citigroup, Antam's president director Dedi Aditya Sumanegara has said, Bisnis Indonesia reported on Monday.

Speaking with reporters in Bandung, last week, Dedi said Citigroup would carry out the feasibility on the financial aspect of the planned merger. "The study on the legal aspect of the merger plan has been completed and the result is positive. It means that in a legal view, the merger is feasible," he added.

He said he hoped that the feasibility study on the financial aspect of the merger plan could be completed this year. "The result of the study will be used to determine whether or not the merger will be carried out," he added.

According to him, the government has proposed a number of alternatives in merging the three companies. One is to establish a holding company PT Indonesia Resources Company to over see the operation of the three mining firms, or to appoint one of the three companies as the main operator of their mining activities, he said. (*)