Timah revives plan to buy Kideco shares

State tin miner PT Timah Tbk. is reviving plan to acquire stake in East Kalimantan coalminer PT. Kideco Jaya Agung, which is offering its stake to Indonesian-owned business entities, an industry source said.

?Timah has already notify Kideco about its intention,? said the source.

The source said that Timah had initially backed down from from participating in the tender but later revived its plan to acquire the Kideco shares for an unspecified reason.

The source said Timah is considering to buy a substantial portion of the shares being offered.

Kideco is scheduled to offer 34 percent of its stake this year with basis price of US$367.7 million for 100 percent shares.

Timah corporate secretary Prasetyo B. Saksono said he was not aware of the firm's intention.

Kideco?s contract of work obliges it to gradually divest up to 51 percent of shares to Indonesian owned entities after 10 years of commercial production. In 2002, Kideco is required to divest 44 percent of its entire shares. Two companies, PT Muji Inti Utama and PT. Sumber Mitra Jaya had taken 10 percent of Kideco?s shares.

Kideco is one of Indonesia?s top coal producers, operating a coalmine in Pasir regency, East Kalimantan. The company planned to produce some around 12.5 million tons this year. (alex/robert)