East Kalimantan drops lawsuit against KPC<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The East Kalimantan provincial administration has lifted a
\nlawsuit against coal mining firm PT Kaltim Prima Coal (KPC), a
\nmove that would pave the way for the long-stalled divestment of
\nKPC's 51 percent stake to local players, a senior government
\nofficial said on Tuesday.<\/p>\n
Director General of Geology and Mineral Resources Wimpy S.
\nTjetjep said that the East Kalimantan administration had ordered
\nits lawyer to drop the case.<\/p>\n
\"Now it's only a matter of coordination between lawyers (of
\nboth sides) and the court,\" he said.<\/p>\n
KPC, which is equally owned by Anglo-Australian mining group
\nRio Tinto Ltd. and Anglo-American energy group BP Plc., is
\nobliged to divest 51 percent shares to local investors.<\/p>\n
The central government has appointed the East Kalimantan
\nprovincial administration as the preferred bidder for the KPC
\nstake.<\/p>\n
But the divestment process had been in a stalemate due to
\ndisagreement over the price of the shares.<\/p>\n
The provincial administration then filed a lawsuit in October,
\nalleging that KPC had deliberately delayed the divestment
\nprogram. It demanded some $776 million in compensation from KPC
\nand threatened to annul the company's work contract.<\/p>\n
It was only earlier this month that the central government and
\nKPC agreed to value 100 percent of the shares at US$822 million.<\/p>\n
The East Kalimantan administration was also reportedly
\nsatisfied with the price. The administration then agreed to drop
\nits legal action.<\/p>\n
A government source, however, said that one remaining problem
\nfor the completion of the divestment program was a demand from
\nKPC shareholders to hold an open tender for the stake instead of
\nnaming the East Kalimantan administration as the preferred
\nbidder.<\/p>\n
KPC began operations in 1992 in Sangatta, East Kutai regency,
\nEast Kalimantan.<\/p>\n
It has an annual output of about 15 million tons, exporting
\nsubstantial volumes to South Korea, Taiwan and Japan.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/east-kalimantan-drops-lawsuit-against-kpc-1447893297",
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