Timah drops plan to acquire KPC shares
Friday, February 2 2001 - 04:00 AM WIB
The state-owned tin mining company PT Tambang Timah has dropped plans to purchase shares in coal mining company PT Kaltim Prima Coal, the Republika daily quoted company president Erry Riyana Hardjapamekas as saying.
The paper did not say clearly the reason for dropping the plan, but Erry said that the East Kalimantan administration was very keen to purchase the KPC shares.
KPC must divest part of its shares this year. East Kalimantan administration has demanded that it should get the top priority in purchasing the KPC shares because the coal mining company operates in the province.
The divestment program was supposed to be completed last year, but it was delayed due to debate over how much shares should be released by KPC. East Kalimantan said that according to the mining contract, KPC must divest up to 51 percent, but KPC insisted that according to the same contract it was only supposed to divest some 37 percent stake. (*)