Timah formally says interested in acquiring Arutmin?s shares

State tin miner PT Timah Tbk has openly stated its intention to acquire majority shares of coal mining firm PT Arutmin Indonesia, according to its president Erry Riyana hardjapamekas.

?We want to acquire controlling interest in Arutmin to get maximum benefit,? Erry told reporters on a sideline of the company?s public expose Wednesday.

Erry said the move was aimed to diversify its business as its tin reserve in Bangka ?Belitung province is declining.

?We want to acquire controlling interest in Arutmin to get maximum benefit,? Erry Rijana Hardjapamekas told reporters on a sideline of the company?s public expose Wednesday.

Erry said Timah had formally submitted its application to the Ministry of Energy and Mineral Resources to take over the coal mining?s stake two weeks ago but so far received no response.

PT Arutmin, which operates a coal mining concession in South Kalimantan, is 80 percent owned by BHP-Billiton of Australia and 20 percent by local partner Bakrie and Brothers.

BHP-Billiton plans to sell its 80 percent in the coal mining company. 31 percent of the 80 percent stake will be sold under the government?s mandatory divestment program.

Several local companies including Bakrie and Brothers have expressed their interest to buy BHP-Billiton?s stake in Arutmin. Although Bakrie has a pre-emptive right to buy the shares, the company has been given a cool response from BHP-Billiton to take over the stake. (*)