Govt appoints consultant to value KPC stake<\/p>\n
JAKARTA (JP): The government has appointed a consultant to
\nappraise the value of the 51 percent stake in East Kalimantan-
\nbased coal mining firm PT Kaltim Prima Coal (KPC) on offer for
\ndivestment.<\/p>\n
The director general of geology and mineral resources at the
\nMinistry of Energy and Mineral Resources, Wimpy S. Tjetjep,
\nconfirmed the appointment of the consultant saying that it should
\nspeed up the protracted negotiation over KPC's share price.<\/p>\n
"We have good will here ... We hope it (the negotiation) can
\nbe finished by the end of next month," he told the Jakarta Post.<\/p>\n
Wimpy, however, refused to name the consultant, but an
\nofficial at the East Kalimantan provincial administration said
\nthe consultant was Kemal Syamsuddin.<\/p>\n
According to Wimpy, if the price could not be agreed upon in
\nSeptember, the negotiation would take longer because KPC
\nshareholders, Rio Tinto of Australia and Beyond Petroleum of
\nBritain, planned to offer a new price in October.<\/p>\n
Under its contract of works, KPC shareholders are required to
\ndivest a 51 percent stake in the company to a local entity this
\nyear.<\/p>\n
The East Kalimantan provincial administration is the only
\nparty who has bid for the stake.<\/p>\n
However, there is still a wide gap between the bid and the
\nprice offered for the stake, with KPC shareholders wanting to
\nsell the stake at $448.8 million and the East Kalimantan
\nadministration bargaining at $319 million.<\/p>\n
The appointment of an independent appraiser should help bridge
\nthe gap. However, the appointment of Kemal Syamsuddin was not
\ndone in consultation with KPC shareholders.<\/p>\n
Rio Tinto spokeswoman Nunik Maulana said her party welcomed
\nthe government initiative, but said that the company had no clear
\nplan as yet to work with the government consultant.<\/p>\n
Nunik said that KPC shareholders would continue negotiations
\nwith the East Kalimantan administration on Friday.<\/p>\n
KPC, which operates a huge coal mine in Sangatta, Kutai Timur
\nregency, produces an average of 50,000 tons of coal a day and 15
\nmillion tons a year. (iwa)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-appoints-consultant-to-value-kpc-stake-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}