Timah wants to buy Kideco shares

Tin miner PT Timah Tbk has formally expressed interest to bid for 34 percent shares in East Kalimantan-based coal mining firm Kideco Jaya Agung, an industry source told Petromindo.Com Thursday.

?Last week, Timah sent a formal letter to Kideco to convey its intention to buy the company's shares,? the source said.

In response, Kideco would open its data room for Timah, the source added.

The source said state coal miner PT Tambang Batubara Bukit Asam (PTBA) would also likely to join the bid for the Kideco shares.

Kideco, one of Indonesia?s top coal producers, had invited around 18 parties including Timah to bid for 34 percent of its shares as part of its obligatory divestment program. The company?s contract of work obliges it to gradually divest up to 51 percent of its shares to Indonesian investors after 10 years of commercial production.

The company had earlier sold 10 percent shares to PT Sumber Mitra Jaya and PT Muji Inti Utama, which is an affiliate of coalminer PT Gunung Bayan Pratama.

Elsewhere, the source also said that despite a lawsuit filed by the East Kalimantan government against Kideco, the divestment program would proceed. The provincial government had earlier demanded the court to stop Kideco's divestment program.

Kideco operates a coalmine in Pasir Regency in East Kalimantan, producing around 11 million tons of coal annually.

Meanwhile, publicly listed Timah is the world?s largest integrated tin miner operating in Bangka Belitung province. (godang)