Update: Correction: Govt confirms Kideco?s divestment delay

Government confirmed on Tuesday it had granted 20-day extension to East Kalimantan coal miner PT. Kideco Jaya Agung until April 20 this year to complete divestment process of its 41 percent shares, a senior government official said.

?Government has granted 20-day extension,? said Simon Felix Sembiring, Director General of Geology and Mineral Resources at the Ministry of Energy and Mineral Resources. Sembiring said two companies had been selected as final bidders and Kideco would need the 20-day extension to negotiate price and terms and conditions.

Another government official told Petromindo.Com that there are two bidders to buy Kideco?s 41 percent shares: mining contractor PT. Krista Margadata Utama and Indika Group. Indika Group is a local company which bought BP?s 75 percent shares in polyethylene producer PT Petrokimia Nusantara Interindo for US$50 million last year.

The official denied Petromindo.Com?s earlier report, quoting a source, that Kideco divestment failed to attract bidder until March 31 dead-line. ?According to Kideco?s report, there are two bidders selected out of three final bidders short listed,? said the source.

Under the Coal Contract of Work (CCoW), Kideco is required to gradually divest up to 51 percent of its shares to Indonesian owned companies after 10 years of commercial production. Kideco had earlier managed to sell 10 percent shares to two Indonesian companies namely PT Sumber Mitra Jaya and PT Muji Inti Utama, which got 5 percent each.

Kideco, one of Indonesian top coal producers, is controlled by South Korean pharmaceutical conglomerate Sam Tan Corp.

Government and Kideco had earlier agreed to price 100 percent shares of Kideco at US$365 million. The figure will be used as a base for divestment price.

The official said if the divestment failed to take place until April 20, Kideco would have to make new share offer based on the price which will be later negotiated with the government. (godang)