KPC asks three state mining firms to buy stakes<\/p>\n
JAKARTA (JP): The country's largest coal mining company PT
\nKaltim Prima Coal (KPC) has invited three state mining companies
\nPT Tambang Timah, PT Aneka Tambang and PT Batubara Bukit Asam to
\nbuy 23 percent of its stake to fulfill a mandatory divestment
\nprogram.<\/p>\n
The three companies have been given three months to decide on
\nthe offer, KPC said according to letters sent on June 16 to the
\nthree companies, copies of which were made available to The
\nJakarta Post yesterday.<\/p>\n
KPC will allow the three companies to carry out due diligence
\nbefore making deals.<\/p>\n
KPC says its 23 percent of shares are valued at $176 million
\nbased on the due diligence conducted by independent appraiser
\nJardine Fleming Nusantara.<\/p>\n
A spokesman for KPC, Ali Nurdin, confirmed the direct private
\nplacement offering to The Post, saying KPC believed the three
\ncompanies would give KPC \"added value\" as shareholders in the
\ncompany.<\/p>\n
\"The added value would be in terms of management, experience,
\nand technology,\" he said.<\/p>\n
Tambang Timah, listed in Jakarta and London, is known as one
\nof the world's most efficient tin mining companies, while Aneka
\nTambang, listed in Jakarta, is one of the country's leading
\nmining firms with operations including ferronickel, gold, silver,
\nbauxite and iron sand. Bukit Asam is the country's oldest and
\nsecond largest coal mining company.<\/p>\n
KPC is required under its contract to divest up to 51 percent
\nof its shares either to the government, the Indonesian people or
\ncompanies controlled by Indonesians, between the fifth year and
\n10th year of its commercial production.<\/p>\n
According to the contract, the government decides on the type
\nof divestment.<\/p>\n
Divest<\/p>\n
KPC initially wanted to sell its shares through the stock
\nmarket but the ministry wanted the company to divest its shares
\nthrough direct private placement.<\/p>\n
Director General of Mining at the Ministry of Mines and Energy
\nRozik Boedioro Soetjipto said the government would not be
\ninvolved in the selection of the buyers of the company's shares.<\/p>\n
KPC is equally owned by British Petroleum and Rio Tinto, both
\nfrom Britain, and is operating a rich coal mine in Sangatta, East
\nKalimantan.<\/p>\n
It signed a contract with the government in 1982 and started
\nproduction in 1992. Thus far, it has invested $750 million.<\/p>\n
It is now the country's largest coal mining company, with a
\nprojected output of 15 million tons this year.<\/p>\n
The company exports all its product to Japan (32 percent),
\nTaiwan (24 percent), Hongkong (12 percent), Europe (12 percent),
\nAmerica (7 percent) and other Asian countries, including the
\nPhilippines, (4 percent).<\/p>\n
With current coal prices of between $25 and $35 per ton, the
\ncompany will receive earnings of between $375 million and $525
\nmillion this year. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kpc-asks-three-state-mining-firms-to-buy-stakes-1447893297",
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